The Recovery of BPO

The BPO sector of the third world countries are expected to recover from the recession faster than their counterparts in USA or Europe. The reason is simple: the cost factor. Business firms in USA, the prime revenue generator for the business process outsourcing industry, are looking at ways to cut costs. They will not be able to hire the expensive call center services offered by the domestic call centers. No matter what the government says about bringing back jobs to the American shores, that will never be a reality unless the cost factor comes down to the same page. Offshore destinations of outsourcing have this advantage that will never be undermined by shrewd businessmen.

The government may be worried about the political compulsions of having to deal with a two-digit unemployment rate. But that does not worry the business firms wanting to get some call center onboard. Their only criteria to decide the BPO unit they will hire is the bottom line of their business. Tax burden will not be a factor when the business firm sees that even with taxes the option of using offshore call centers is still economically viable. In this sort of a scenario, the Obama administration can do little to hinder the recovery of business process outsourcing organization working out of the third world countries.