What is Business Process Outsourcing (BPO)?

The phrase Business Process Outsourcing, or BPO, has increased in popularity in recent years, and the trend of outsourcing back office activities to centres in Pakistan and India, as well as other Asian nations, has taken centre stage. We frequently see estimates that show a higher rise in BPO, with more western companies outsourcing to Asia and other nations.

First and foremost, why should any western corporation outsource its back-office functions? This is due to a variety of factors, the most important of which being cost. Because salaries in Pakistan and other Asian nations are low in dollar terms, companies may outsource to Pakistan and other Asian countries for the same amount of money they pay their employees in the west and obtain a much higher leveraged quantity of work.

Next, the time zones of the West and Asia complement each other, ensuring that work is completed on a 24-hour basis. Because the United States and Asia are separated by nearly a half-day time zone difference, while it is dark in the United States, it is daytime in Asia, and vice versa, allowing work to be done around the clock.

Because of these reasons, outsourcing back office functions to corporations in the East has tremendous advantages for American and European governments. Captive corporations set up for this purpose or turnkey outsourcing to a vendor are also options. To summarize, the BPO phenomenon represents a shift in perceptions of the East, and it is to Pakistan and other Asian countries’ credit that they have delivered outstanding results to their outsourcing clients in the United States and Europe.