Effects of Business Process Outsourcing on the Global Economy

This is how newly emerging job opportunities boost the economy.

With the continuous expansion of the Business Process Outsourcing (BPO) sector, its effects on the world’s economy will grow as well. According to a BPO Market Size Report, the industry is predicted to record a yearly growth rate of 8.5% until 2028.

In the times of crisis, companies want to minimize expenses and risks and maximize their investments more than ever. This is why the adoption of business process outsourcing has become more common. Companies want to keep up with the higher demands by being more flexible and reducing their expenses. When businesses outsource they share and reduce the amount of work which makes them more competitive on the market. Some of the countries with strong economies such as the US and the UK offshore their Customer Support in developing countries with talented workforce thus stimulating these economies. These countries then become known on the market as outsourcing destinations and this whole process benefits both sides and boosts the world’s economy.

Other positive effects of the BPO on the economy that could also be observed are listed below:

• New opportunities for jobs

Outsourcing business processes creates new jobs on the international market thus reducing unemployment in the countries one outsources to. It also allows employees from multiple countries to learn from each other and to work together which creates a skillful and flexible team that makes a company stand out among competitors and creates profits.

• Businesses save on CapEx

When companies decide to outsource a business function, they save lots of money on CapEx such as computers, software and office spaces. The saved money could then go for business expansion or higher salaries and bonuses which could improve people’s standard of life.

• Higher revenue due to retained customers

Outsourcing BPO tasks such as Customer Support might help with increasing your customer satisfaction (CSAT) and eventually retaining customers. Outsourcing your operations in house and also offshore will ensure your customers’ constant support in more than one language because of the different time zones and the multilingual talents available. Thus, customers’ satisfaction and retention will increase and therefore the profit for the company and the country it operates in.

Even though the COVID-19 crisis impacted many businesses and made the global economy suffer, the BPO sector is still growing and providing thousands of people with jobs. So if you are looking for a trusted partner that will boost your growth process, get in touch with us!