The term business process outsourcing translates to hiring a third party to perform business activities for your company. Back in the days, sub-companies provide services to bigger corporations in their business system processing like recruitment, accounting, payroll, employment benefit transactions, and customer services. With the advancement of Internet, communications and technology, these sub-companies have reached higher level of business services. They achieved this better degree of services by developing their staff working skills, automation of some processing using computers, and reaching customer globally with the use of Internet.
The trend in the business world is to hire offshore business process outsourcing companies that can save labor costs but still deliver the same quality of business process. Countries like India, China, and the Philippines are the top performers in the outsourcing industries since late 1990’s. Their manpower are educated and skilled to execute computer programs, applications, and processing. These outsourcing destinations have English as one of their spoken languages so the communication barrier has not become a problem. Some IT outsourcing has also recruited offshore outsourcing companies to handle some of their software quality, testing, and development projects.
Many emerging branches have been spawned from the business process outsourcing industry. The KPO or knowledge process outsourcing requires a higher and specific virtual staff that has particular background and knowledge on areas like insurance, legal, research and design, studies, and other technical and scientific fields. The BTO or business transformation outsourcing is another process which employs offshore outsourced companies to provide backend operations to upgrade business systems into a more interface and dynamic business operation.
Future business companies are predicted to rely on outsourced companies offshore to maintain, develop, and operate their enterprise. The industry of BPO’s are also expected to gain better revenues and profits with the rising multi-million business sector.
