On the other hand, it leads back to these questions: Why do business owners and investors outsource to these places? What advantages do they obtain? Outsourcing provides a range of benefits such as superior quality to product and service innovation and low cost labor, to name a few. Outsourcing however had its own fair share of doubters, as many experts debate on its positive and negative points. And both have become vital elements of defining how thriving enterprises are managed. Before the top outsourcing hubs in Asia are revealed, here are key reasons why outsourcing in this part of the world is very ideal for large-scale corporations, small and midsize businesses as confirmed by organizations that attest to success and effectiveness of the business process outsourcing industry in Asia.
BUSINESS PROCESS OUTSOURCING (BPO) IN ASIA: Why Not Malaysia - Socowo
Riding the low-cost advantage, several of these countries are making a huge effort to garner an increased share in the growing global BPO, now known as BPM — business process management, market. Bangladesh too is one of them. However, it will be a challenge for India to maintain its leadership position as major countries like US, UK continue to look for low-cost options towards south-east Asian countries to remain competitive in the global market. China is soon becoming the favorite for basic low value services, Philippines is preferred destination for financial services and voice-based support. He said Malaysia is a preferred destination for gaming and animation services, Brazil is picking up in financial services and voice based customer support, and Indonesia in engineering services, gaming and animation. Citing concentration risk as another reason, Samuel said some firms feel that they are overly concentrated in India creating increased risk in the event of natural disasters or large currency swings for these firms a more geographically dispersed location strategy makes sense. According to Nasscom estimates, a total of 1.
BUSINESS PROCESS OUTSOURCING (BPO) IN ASIA: Why Not Malaysia
The country used to boast of affordable software development services and low wages, but compensation rates of developed eastern Chinese regions have been climbing to the European and American range in the past years. To some Western investors, this may be a cause of communication problems, but there are businesses that see past this disadvantage and set multilingual voice services there for their Chinese-speaking customers outside China. India has led the business process outsourcing industry in the world within barely a decade it housed subcontracted activities in its top outsourcing hubs like Bangalore and Mumbai.
The growth of the global outsourcing market has been phenomenal, taking off in the late s due to improved telecommunications infrastructure and greater demand for large-scale IT operations. What was once an emerging phenomenon with huge potential at optimizing costs through consolidation, automation, and labor transfer, outsourcing has now also become one of the most viable options for many organizations looking to access and build capability, scalability, and flexibility to support business strategy. Because the marketplace has grown increasingly competitive, there is constant pressure on business organizations to provide value to their customers and meet the challenges of competition. And Asia is where the latest renaissance in outsourcing is happening.