The Impact of Globalization on Business Process Outsourcing (Bpo)

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The Impact of Globalization on Business Process Outsourcing (BPO)

Business Process Outsourcing, also known by the acronym BPO, continues to be a growth industry in 2010. As BPO evolves, improves, and provides greater value, more companies and organizations will find it necessary to embrace this trend in order to be competitive. For the purposes of this analysis, Business Process Outsourcing (BPO) will be defined as the process of contracting specific business tasks to a third-party service provider ( Globalization has and will continue to have a major impact on the BPO industry. The following analysis will discuss three globalization drivers and the potential impact to BPO over the next five to ten years. The three globalization drivers are: * Technology

* Labor Cost
* Regulations

For the purposes of this analysis, the following operational definition will be used when referencing Business Process Outsourcing

Industry Overview

Current BPO industry

The security of outsourcing is relevant to an increasing number of corporations. NelsonHall's study, "Global BPO Market Forecast: 2008-2012," predicts that business process outsourcing (BPO) will generate $450 billion in revenue globally by 2012. The financial services and government sectors are expected to continue to be the leading sectors for BPO services, followed by defense, healthcare, pharmaceutical, and transportation.


Labor Cost


Record Retention



Desai, R., & McGee, R.. (2010). Is Outsourced Data Secure? The CPA Journal, 80(1), 56-59.  Retrieved March 25, 2010, from ABI/INFORM Global. (Document ID: 1947176081).

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