Thursday, August 5, 2010

Global BPO Contracts Rise, Price Falls

The number of contracts between business firms and BPO units shot up by 12% in the recent months, more specifically in the last quarter of April to June. However, the money that changed hands in the process because of the call center dealings was only $3.03 billion. That’s 22% less than what it was in the quarter prior to that. The reason that business process outsourcing insiders give is that because of offshore BPO service, the amount of money is not high enough. Companies have extensively used call centers in the developing countries to get their work done. As a result, they had the benefit of cost cuts. This is why the call center services didn’t see much of money being generated in the industry.

The BPO trends that can be seen here is indicative of the future as well. It’s common knowledge that the call center units working out of offshore destinations will continue to bag the telemarketing projects. The advantage of cost is not something that is forfeited easily. Moreover, sensing the amount of money in the BPO service sector, the call centers in these countries are improving their telemarketing services quality. This is making the task even more difficult for the domestic business process outsourcing units. And true to expectations, they are sitting idle with the major chunk of the projects making their way out of the country.

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