Research And Describe The Business Process Outsourcing Industry (Essay Sample)

Business Process Outsourcing
In this piece, we will take a brief peek into the business process outsourcing industry. The business process outsourcing industry, also known as the BPO industry, was initially designed to meet the needs of foreign based companies that chose to operate various departments of their businesses abroad. In some cases, the decision to operate abroad would be based on financial opportunities, for the purpose of saving on overhead costs, thereby increasing profits. Since labor and operational costs may be significantly lower in other global regions, business owners may choose to capitalize on these factors, and utilize the BPO industry to their advantage. In other instances, specific services, or industrial needs may be more readily available in other global markets, creating an opportunity for international operations. In yet other instances, business owners may decide to outsource various units of their operations simply because they may be global companies, which target consumers and clients in multiple global locations. In those cases, it may simply be easier, and more efficient and effective for those companies to operate locally, in the various markets which they are targeting.
To more clearly define, what sets the BPO industry apart from international or global companies, is that while some business owners opt to rent, lease or purchase properties, set up and operate factories, warehouses and offices internationally, and hire staff abroad to manage and operate these facilities, others choose to delegate specific departments, tasks and responsibilities within their businesses, to other companies, entirely. They form a contract with another company, clearly outlining which business services are to be provided by the other company, detailing all factors, such ...