Challenges Faced by BPO Firms in India
February 12, 2025
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In recent years, the BPO phenomenon has accompanied the increasing globalization of the world economy and has spawned a shift in the way the United States and Europe view the developing countries of the East. For instance, the increasing movement of companies wishing to outsource their back office work to India and Philippines has meant […]
In recent years, the term Business Process Outsourcing or BPO has gained prominence and the trend of outsourcing back office operations to centers in India and Philippines along with other countries in Asia has taken center stage. Often, we come across projections that show a greater growth in BPO with more western firms outsourcing to the Asian and other countries.
This module is intended to cover the BPO phenomenon in depth and provide the readers with a clear understanding of the dynamics involved as far as this phenomenon is concerned.
The various articles in this module would help the readers form a perspective of how the BPO sector works and the business drivers and imperatives behind the outsourcing phenomenon.
Since wages in India and other Asian countries are cheap in Dollar terms which mean that for the same amount of money that the firms are paying their employees in the west, they can get a highly leveraged amount of work when they outsource to India and other Asian countries.
Because of these factors, there are humungous benefits for American and European countries to outsource their back office operations to companies in the East. This can take the form of captive companies set up for this purpose or can be a turnkey outsourcing to a vendor. We will explore these themes in greater detail in the succeeding articles.
In conclusion, it would be fair to say that the BPO phenomenon represents a turning of the tide as far as perceptions about the East are concerned and it is to the credit of Indian and other Asian countries that they have delivered stellar results to their outsourcing clients in the US and in Europe.
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