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Today’s Talk of the Town: What is Outsourcing?

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It’s another busy day at the office. I’m counting on each minute to think, work, and meet my deadlines. After long hours of staring at my screen, an interesting question comes across my mind. “Can I still do this job at different place and time?” Out of curiosity, I started browsing the net to find answer with this question.

Talking about Outsourcing

It took me an hour to find an answer. It is amazing how technology would enable us to do the same job differently through outsourcing. But what is outsourcing and its relevance to the business sectors?

Over the years, the booming BPO industry has offered job seekers various opportunities to work for other countries at the comfort of their localities. The industry also provides additional employment for jobless professionals and newly graduates.

Outsourcing has opened its doors to businesses that wish to provide quality service at low cost. Also, the availability of a third-party service provider would help increase the competitive advantage and proficiency of any company.

Asian Countries on the Spotlight

With a vast number of IT graduates and effective communication skills, Asian countries have been the top choice for outsourcing non-core tasks. Last year, Eastern Europe and Brazil attracted a number of BPO companies. Nonetheless Asian countries such as India and the Philippines were identified as the top destinations for 2012.

In 2011, the Senate of the Philippines projected $11.6 billion revenue from the booming industry. With the current number of companies continuously flocking to the country, business experts said that by year 2016, revenue may reach $25 billion.

China also made it to the list of Asian countries providing quality outsourcing services. An increase of 39.5 percent on the Republic of China’s software and IT services was noted by in the first quarter of the year. Aside from the lower labor cost, Asian countries’ pool of equally talented and proficient manpower has opened doors for boundless opportunities for business and career growth.

The Importance of Outsourcing

I was once asked what is outsourcing. Although this question sounds simple, I find it difficult to answer. Business process outsourcing is more than just sending a job overseas. It is the key to cost reduction, productivity growth, and effective organizational concept. It is a strategic way to ensure a business’ survival through its 24/7 service, as well as continuous building of customer trust and satisfaction around the globe.

With the current economic status, companies have to think of effective ways to save their business. Thus, the business process would be a top choice for improving overall business functions. It also offers a wide range of services that are needed for a company’s growth. Here is a list of top 10 BPO companies based on their revenues:

  • IBM ($99.8 billion)
  • Tata Consultancy Services ($6.8 billion)
  • Infosys ($5.3 billion)
  • Wipro Technologies ($4.7 billion)
  • Cognizant ($4.4 billion)
  • Convergys Corporation($2.2 billion)
  • Accenture ($2 billion)
  • NCO Financial ($1.6 billion)
  • Genpact ($1.2 billion)
  • Stream Global Services ($800 million)

I now know what is outsourcing. It is a process of promoting continuous business while retaining quality service and strong economy through its revenues. Good utilization of these services can ensure the success and development of any size and type of business.