Growth in Revenue for Offshore Outsourcing Companies

As the number of companies that seek a cheaper alternative in terms of labour and equipment expenses increases, offshore outsourcing becomes more in demand. Outsourcing is the method of hiring an external company, preferably from another country, that could provide the needed services for an affordable price. Most of the jobs that are outsourced are either the repetitive ones or tasks that involve advanced skills. The repetitive ones are outsourced because most in-house employees cannot handle the demands of the work as well as its stagnancy. On the other hand, the reason why jobs that need advance skills are outsourced is because of the expensive labour rates.

Because of this kind of setup where the number of tasks outsourced is high, the Business Process Outsourcing industry became one of the largest industries in the world. The largest offshore outsourcing destinations are India and the Philippines. Both countries became ideal outsourcing destinations because of the large number of manpower who can provide quality services for a very low price. Because of the countries’ low cost of living compared to the western ones, companies abroad have  a higher chance of hiring more manpower in order to expand faster.

India is the number one offshore outsourcing destination. The country has the largest call centre industry as its exports from the IT and BPO services have increased by 18.7 per cent to $59 billion in the year 2011. India is ideal because of their excellent educational competency on courses related to computer technology. Aside from this the country’s large educated population gives a great venue for a large number of manpower. Most of India’s clients are airline, technology and financial services corporations.

Next in line in the largest outsourcing companies is the Philippines. Business Process Outsourcing is also the fastest growing industry in the country. The Philippines boasts a steady growth in annual revenue and covering about 15% of global outsourcing markets. The country employs 708,000 full-time employees, with 350,000 working in the country’s call centre industry. Major outsourcing services include the call centre industry, back-office KPOs, IT software development and maintenance, Engineering, Transcription, and Animation.

According to business analysts, the business process outsourcing is an industry that is here to stay. It currently helps the economy on both ends as it provides tons of jobs for offshore outsourcing destinations and helps companies all around the world profit as well.