Managers, in fact, don’t need to justify outsourcing. They might even have to justify work done internally, that could easily be outsourced.

The global market today is highly competitive and ever-changing. A company must focus on improving productivity and yet, cut down costs. Therefore, a lot of tasks that use up precious time, resources and energy, are being outsourced. BPOs, or the units to which work is being outsourced, are flexible, quicker, cheaper and very efficient.

Business Process Outsourcing helps free up a firm’s capital and reduce costs. The functions or processes being outsourced range from manufacturing to customer service to software development and much more. Many of the companies that seek to outsource are in the western hemisphere and most of the BPO units are in the east, like India, China, Malaysia and even Russia.

The Indian BPO industry is growing rapidly. But as the outsourcing movement grows, there is also a backlash against BPOs, as white-collar jobs move from USA and UK to offshore locations like India. With multi-lingual skill-sets developing, the European market too is likely to open up to BPOs, in the near future.
Data 2004 - Author Annie Zaidi