Where In The World Is BPO?

Initially developed and associated with manufacturing firms, business process outsourcing (BPO) is defined as a specific subset of outsourcing. An economical, financial, social, and political hot topic, BPO is more common than ever. Traditionally associated with Asia, companies are contracting in a much wider geographic landscape as we head into the new decade. Let’s take a closer look at some of the top countries for outsourcing business processes.

Asia

When firms decide to outsource, the first region that comes to mind is likely Asia. Countries such as Japan and China originally got their economic jumpstart via manufacturing contracts with developed, western countries. Although Japan is less likely to be associated with outsourcing these days, countries such as India, China, Vietnam, Malaysia, and Indonesia are still among the top countries to go, or in the case of India, THE top spot.

With around 2.6 million STEM graduates produced each year, India has an army of skilled tech workers ready for modern company needs. Their technical abilities are not the only aspect that makes them the go-to outsourcing destination, they are also the country with the second largest number of English speakers. This has made India a popular BPO choice for firms in need of large call centers.

Central & Eastern Europe

Next we head west to Eastern Europe. Unlike India or China, Eastern Europe doesn’t usually pop into one’s mind when the term ‘”outsourcing’ is thrown around. However, large (and not so large) Eastern European countries such Ukraine, Poland, Belarus, and Romania are making their way to outsourcing top 10 lists. What’s making these former Eastern Bloc countries so popular?

Traditionally, laws that are either too ambiguous or too restrictive have been a concern for companies looking to outsource their business processes west of Germany, but cultural similarities, rapidly growing technical expertise, and advantageous cost-to-quality ratios are driving BPO growth in the ECE countries. The convenient time zones – especially if you’re in Western Europe – also add to the region’s appeal.

Africa

Going further west, we land on the continent of Africa. Several countries situated along the coast are up-and-coming locations for BPO operations. Currently, business and economic analysts are looking at five in particular: Kenya, Morocco, South Africa, Egypt, and Nigeria.

Tending to specialize in software development and financial and human resource management services, the continent provides a wealth of skilled labor. According to Empower Africa, the median age across the continent is 18. Compare that to the US or Europe where the median ages are much lower. These five rapidly developing tech centers are producing a huge, technically-skilled workforce that can maybe be able to reduce the STEM shortage in other countries. When done legally and ethically, this helps local economies too because many African countries do not always have the economic infrastructure to provide meaningful employment to their educated populace.

Central & South America

Finally, we arrive back in the Americas. Central and South America, typically known for the outsourcing of manufacturing, are now entering the tech industry.

For English-speaking countries, Argentina is a prime pick for managed services. The country consistently ranks high on English (according to this Spanish-language report), the highest in both Central and South America. Other countries, such as Chile, Belize, and Columbia are popular destinations as well for their low-turnover rate and relatively cheap costs. Mexico is no stranger to outsourcing. Known for outsourcing manufacturing and food science operations, the country is also getting into the IT sector. However, this very possibly could change heading into the future.

Where Is BPO Headed?

The BPO industry was worth $221.5 billion at the end of 2019. Analysts expect the market to grow at a compounded growth rate of 8%. So it’s safe to say that BPO is not going away. If you are looking to subcontract our outsource your IT business process, but aren’t sure if you want to head overseas, contact us to discuss how we can help you augment your staff and find the right people for the job.