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Business outsourcing may have become a common trend, but if we ask people what exactly resulted in the emergence of this concept, not many will be able to answer that question. Most will just be able to scratch the surface saying that the concept developed due to the need to derive cost benefits. In a way, answers like this may be right, but in the context of the basic question above, they only seem to be a half-hearted attempt to describe something that holds a lot more meaning than it might appear on the surface. The right answer will require a detailed analysis of the immediate business environment.
So, what’s the right answer? Well, the seeds were sown when technological advancements increased their pace, allowing businesses worldwide to have access to the latest technology. This created a level playing field, allowing more and more small & medium sized businesses to compete with their larger counterparts. As a result, competition increased dramatically and businesses started looking out for newer strategies to handle the growing competitive pressures.
Over the years, the strategy to outsource proved immensely successful, so much so that the basic idea has now transformed itself into a full-fledged industry, generating billions of dollars in revenues, every year. By allowing businesses to reduce costs, improve quality & efficiency and increase customer satisfaction, the strategy of business outsourcing has turned out most successful in recent times.
true, Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider.