BPO or Business Process Outsourcing has been a part of the economy for quite some time. But the Covid-19 pandemic and the aftermath allowed us to notice a surge in the sector.
Outsourcing is when one company seeks employees from other companies or individuals to do their work. Thanks to modern technology and the evolution in the IT sector, remote assistant services are a phenomenon among different sectors.
Lack of resources might have been an issue in countries such as India. But thanks to their population, India, and China have recently contributed significantly to the BPO sector.
Nowadays, finding virtual assistant services in India is a piece of cake, whereas it would have been difficult a few years back.
Who Are BPO Service providers?
BPO service companies provide services to external companies. BPO service providers take on one or more IT-based jobs to process. Employers find BPO services that cater to their demands while fulfilling business functions in certain niches.
Accounts, IT, telecommunications, data entry, remote assistant services, virtual healthcare consultants, customer support, and website hosting –are just some of the services remote assistant services usually provide to those who need them.
The Global BPO Industry
According to a report, the BPO industry will have a significant growth rate of 8.5% until 2028. The growth of the BPO industry worldwide and its impact cannot be ignored. BPO offers reduced costs and focuses on core business goals, market analysis, 24/7 customer service, etc.
Companies are intrigued by the benefits offered by BPO providers, leading to the sector's rapid growth. The customer care section of BPO alone is expected to grow by $30.4 billion by 2027.
The BPO industry is expected to have a compound annual growth rate of 9.1% until 2030. Outsourcing can make both parties a winner.
The companies outsourcing their work can receive quality work at a reduced cost. This gives them the chance to invest elsewhere and expand their business.
The countries providing outsourcing work can increase their employment and improve the GDP. India, the Philippines, South Africa, the USA, and Malaysia –are some of the top countries for outsourcing.
According to the WTO, the BPO industry in the Philippines contributed to 7.3% of the country's economy with $22 billion in revenue.
The country has seen around 12% growth in its GDP in 2021. The impact of BPO on these countries' economies is evident.
Impacts of BPO Companies on the Global Economy
The BPO industry was already on the rise since the development of modern technology. With the work-from-home notion in practice (thanks to the Covid-19 pandemic), the industry got the chance to grow even more.
Let us look at how BPO companies have impacted the global economy and the involved factors.
Increasing Employment Opportunities
Thanks to the BPO industry, there are more job opportunities. Talented individuals, both young and experienced, are gaining the confidence to reach out to different companies for part-time and full-time jobs.
The BPO industry is growing, and so is the number of people working there. Employers take the chance of hiring offshore employees if they have the skill set they need. Outsourcing is often the only way for many new and eager employees to look for jobs in which they can excel.
With more and more BPO companies on the rise, more opportunities for such employees are underway.
Reducing Operation Cost of Businesses
One of the biggest reasons for outsourcing to be such a phenomenon is the fresh talents one can find without spending a lot.
Any company, big or small, will not throw away the chance of hiring people who can get the job done with little pay. When your employees work remotely, there is less office space for you to worry about.
With fewer people working in the office, the utilities will also be less. This helps reduce the overall operational cost of any business.
You have employees working for your company who are getting the job done. But since they work from the comfort of their homes, you do not have to worry about ensuring proper office space.
Increasing Quality of Work
When quantity increases, there is a chance of better quality as well. Such can be said for the BPO industry and the outsourcing they provide.
With more and more companies vouching for outsourcing tasks, the competition is fierce. BPO service providers are determined to snatch as many works as they can.
These companies are hiring fresh talents every day. The newcomers in the industry are also adamant about staying. So they bring their best to the table. This helps the third-party companies that need the services BPO companies, and their employees provide.
Finding quality workers for outsourcing is not that difficult now since the field has become extremely competitive.
Better Opportunities for Small and Uprising Businesses
No matter what size a business is, outsourcing is always a great way to find quality workers at reduced costs. Lots of MNCs make deals with BPO companies for their mega projects. But they are not the only ones to benefit from the opportunities the BPO sector provides.
Startups and small businesses can heavily benefit from using BPO services. Many new companies had emerged recently, especially during the pandemic when people thought of doing something remotely.
It is easier to manage a new company when you do not have to deal with the offline aspects (such as – warehouse, office, transport, and so on).
Small businesses can use outsourcing to promote their business at a reasonable cost. Since the BPO industry is vast, new business owners can explore more options to find deals that suit them the best.
Contributing to the GDP of the Country
We have already established that outsourcing means more employment opportunities, especially in the international market. Both graduates and undergraduates are involved in the BPO services. It not only increases the employment rate among youngsters but also allows them to contribute to the GDP of their respective countries.
When a huge portion of your population is involved in the BPO industry, foreign dollars surge into the economy. Countries like India and China have suffered because of their huge population. Now they are using that population to turn the tables on their economy since they have the most numbers of people working on outsourcing.
Whether remote accountants via remote assistance service in China, computer operators in Mexico, or virtual assistants in India; all contribute to their country's GDP.
Conclusion
Companies hope to reduce their infrastructure costs by outsourcing their tasks. Once they find the perfect people for the job, they can use that budget elsewhere and expand the business.
The BPO industry is not growing alone. It is also helping other businesses to grow by ensuring efficiency in the services.
The impact of the BPO industry on the global economy is reflected overall. The business processes of outsourcing create more and more employment opportunities in the international market.
Thanks to these opportunities, the unemployment rate is decreasing in the countries the BPO companies are based.
Do you wish to be a part of this global trend? We are ready to provide you with top-notch outsourcing services on demand. Contact ASL BPO for more queries.