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Business Process Outsourcing – Top Secrets Revealed

Assigning a particular task associated with a business to another company and paying them if

they show the promised results is called outsourcing. For example, LG electronics will

manufacture goods in Korea and distribute them all over the world. A company in the U.S.

totally non-connected to LG will serve the U.S customers who want to register a complaint

about the LG product they have purchased or know how a certain feature works. There are

millions of people all around the globe in the IT service management industry which provides

such services on a very large scale basis.

Advantages and Disadvantages of BPO Services

As it is usually cheaper to outsource work to developing countries, most high class corporate

companies play with the local employment market. The customers who call the third world

countries are usually annoyed by the totally different accent they hear. Corporate companies

face their competition efficiently with the millions of dollars saved because of outsourcing.

They give the customers a cheaper product with the same quality. They use the money to

expand constantly generating a huge stream of revenue in the form of taxes for the

government.

Industries Highly Dependent on BPO Services

IT companies, medical industry for billing, coding and transcription, Insurance industry to

maintain huge databases, financial industry for getting accounting and tax related services are

all highly dependent on outsourcing for their daily activities.

Relevance of BPO Services

IT service management has grown enormously in the past two decades making it impossible for

massive companies to handle all their work themselves. The way people did business has

changed enormously with the advent of e-commerce. Unknown buyers and totally clueless

sellers are all connected by one thread, the customer service executive. The world has

transformed into a highly dense web where one node cannot survive without the help of its

interconnecting ones. Business process outsourcing acts as the thread connecting the different

nodes.

A person no longer needs to own a physical shop or manufacture goods in the modern market

to do business. They can simply invest their money and outsource all other activities in e-

commerce from promotion to maintaining the online shopping website. Business process

outsourcing has mingled so closely with the livelihood of both the developing and the

developed countries that it can no longer be curbed or eliminated.

Gone are the day’s people picked up their tools and fixed the issues or just called the local

handymen to get the work done. Be it a child playing a video game or a mother calling a

plumbing service and a father trying to pay the bills online, there is an outsourcing company

working as middlemen handling their queries and directing it towards the relevant people. The

world has become fast, organized and digital. The businesses have changed and evolved with it.

IT service management is an important part of that change as it fuels such changes. With the

increasing population and the ever growing corporate company sizes it becomes necessary to

provide everyone with a job and outsourcing is a great way to do it.