the two big drivers of outsourcing and their impact on bpo

The Two Big Drivers of Outsourcing and Their Impact on BPO

Many of you may be familiar with Business Process Outsourcing but by its acronym BPO. BPO is when an organization signs a contract with an external company or service provider to complete its operations and tasks. This contract requires a very strong understanding of business processes and management. A company usually outsources an external service provider for better performance at a lower monetary expense. Many big drivers of outsourcing are keeping the BPO industry afloat.

In the last twenty years, the world has seen a considerable rise in the demand for BPO – among small, medium, and large enterprises. Today, various jobs are being outsourced to service providers in the United States, other countries in North America, and even government organizations due to the growth in the use of BPO. As the BPO sector expanded quickly, this year saw only a few distinct outsourcing trends. It is always changing and adjusting to the demands of the market.

10 Big Drivers of Outsourcing

Outsourcing services are still in great demand, with offshore IT outsourcing leading the pack. These services are especially crucial given that customers require a flawless online shopping experience to make their purchases. They support the expansion and sales of your company. You may have come across many aspects labeled as key drivers of outsourcing which led you to this question; which one of the following is a driver for outsourcing? We’d say all of them.

Here is a list of 10 big drivers of outsourcing:

1. Globalization

Globalization is one of the most significant and big drivers of outsourcing. Outsourcing and foreign migration become two competing forces due to this process. Both have a significant effect on the world economy. Demand for skilled labor from developing nations is rising. This catalyzes increased job growth. But this brain drain also contributes to the loss of skilled workers in underdeveloped nations. Regarding benefits, offshore outsourcing enables rich countries to add jobs in underdeveloped nations. As a result, it increases the foreign currency entering a country and is a major driver of growth in health care, education, and outsourcing.

2. IT Infrastructure

it infrastructure

An organization may quickly, economically, and safely move data to a company on the other side of the world thanks to infrastructural and IT advancements. This enables raising shareholder value and ROI. Additionally, this lowers expenditures for businesses. Since they can concentrate on their core competencies, these businesses provide better services. As a result, businesses can offer their services more successfully and at lower costs by collaborating with offshore BPO providers. Therefore, a strong IT infrastructure is among the big drivers of outsourcing.

3. Geopolitical Situation

If you stay updated with the news, you must have noticed the significance and regularity of political meetings, conferences, summits, etc. The need to promote international dialogue and collaboration is the fundamental driver behind their holding. This promotes technical advancement and globalization and eases international trade. Hence, its favorable impact ranks it among the big drivers of outsourcing.

4. Specialized Services

Expertise is another important factor among the big drivers of outsourcing. It’s wise to leave certain chores to experts in the industry. Search engine optimization is a prime illustration of this. SEO calls for patience, regular updates, and in-depth knowledge of Internet marketing techniques approved by search engines. You can benefit from the experience of a group of SEO experts by outsourcing your SEO services.

5. Better Quality

Better quality goes along with the fact that you require specialized services. Outsourcing is the best option if you want better products or services. Whether you require SEO, web development, IT and marketing support, or any other type of content, outsourcing firms commit to offering the highest quality products and services. Digital marketers alter the approach based on your current circumstances and business objectives; this is why zero compromises on quality are considered among the big drivers of outsourcing.

6. Cost Reduction

One of the most crucial big drivers of outsourcing is cutting operating costs. After the coronavirus crisis, it’s arguably the most important factor for most enterprises. You can reallocate funds for more crucial business endeavors by receiving the expert quality of support your organization requires without the accompanying costs.

7. Strategic Process

strategic process

It’s okay for outsourcing to be motivated by an issue. Increase your output overall. Or you’ve intended to convert to different business practices for a while and are now finally ready to do it. Whatever your motivation, do it. By reassigning certain responsibilities, outsourcing enhances your company’s operations. This enables meeting basic demands while your representative concentrates on duties unique to their sector.

8. Regularity Requirements

An in-depth understanding of some company jobs’ rules and regulations is necessary. It’s important to stay current with search engine rules, especially Google’s if you’re doing SEO. You’ll have someone watching out for these changes if you outsource.

9. Reporting & Record Keeping

Keeping track of all your business-related responsibilities can be challenging, especially if your company is expanding. Give some of those responsibilities to others so you may concentrate on the important things. While the outsourcing company monitors your operations and IT support, it allows you to concentrate on your expertise. Therefore, reporting and record-keeping are listed as big drivers of outsourcing.

10. Expansion

The primary driver of offshore outsourcing is driven by the idea of business expansion. However, some of the most important facets of your company’s operation were probably targeted by the barriers COVID-19 erected in your company’s path. Payroll, marketing, and even employing new personnel are where most businesses must make cuts. You can still grow your company by spending less on marketing, hiring, and other expenses without compromising the caliber of your operations and core business functions. This is the exact way that is outsourcing benefits businesses, which explains why the BPO sector keeps thriving in a world plagued by pandemics.


The combination of the aforementioned big drivers of outsourcing is shaping the future of BPO. Consider reducing business expenses to do the most in your limited budget. However, based on these elements, outsourcing will assist your company in surviving difficult times.

ABO having a vast experience with BPO industries can provide you with outsourcing services like graphic design, logo design, branding solutions, and much more. ABO offers cost-effective packages with top-notch market-competitive services.

ABO’s outsourcing services will be light on your budget and heavy on results.

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