The BPO industry is more than just giving companies the luxury to cut down costs. It also brings people and business who are geographically apart together through a powerful technology that makes human and data communications easier.
However, did you know that the practice of outsourcing already existed as early as the 19th century with its official term formulated not until 1981? Understand why and discover more insightful facts from the rich history of the BPO industry.
Outsourcing Before. Between the 19th and 20th century, the practice of outsourcing was through the form of hiring external suppliers, mostly within their locality, for ancillary services. The reason for this was because organizations were not completely sufficient in certain facets of their work.
Origin of Outsourcing – The word “outsourcing” officially came into term no later than the year 1981. The term originated from the phrase “outside resourcing”. It involves contracting to different foreign, domestic, offshore and nearshore industries.
Varied Services. The BPO industry is known for its flexibility in providing clients with different kinds of outsourcing services. Examples of call center services are inbound and outbound, live chat, bookkeeping, web development, research marketing, accounting and financial, and after-hours call answering services.
Cost Cutting. In the 1990s, the primary reason why companies started to consider outsourcing is because of its cost-cutting benefit. Companies usually outsourced employees for their administrative or non-core operations such as human resource, accounting, and finance.
Social Media Impact. During the late ’90s, customer service engagement was solely dependent on website and Interactive Voice Response (IVR). That all changed with social media. Social media has provided agents an unprecedented wealth of consumer feedback and data. With that, it gives them the chance to solve issues on existing products and services.
Startups. Over the past few years, startups have slowly practiced outsourcing to offshore companies to cut down costs and would likely become a trend in the coming years. In fact, startups invested $462 million in the BPO industry in 2014.
Saved Australia – Back in August of 2007, an interview with Anthony Segg, the national chairman of the Australian Teleservices Association, predicted that in the “very near future” Australia would truly embrace and feel the effects of outsourcing. That happened in 2008 when IBM released a BPO report showing that 80% of Australian companies were willing to outsource from offshore companies to save 50% in expenses. This helped them weather the 2008 global financial crisis.
Major Outsourcing Buyer Regions – The Global IT-BPO Outsourcing Deals Analysis identified 3 major outsourcing buyer region; 42% from North and South America, 35% in Europe, the Middle East and Africa, and 23% from Asia and Oceania
Be part of the Success!
As mentioned, outsourcing to a BPO company saved Australia companies from bankruptcy and continued to make their mark in the business world. Your company can make a mark too regardless of its current size. As long as you partner with the right BPO company, you are in good hands— something you’ll experience with Forward BPO.
At Forward BPO we have a host of outsourcing services such as call center, after hours call answering, live chat, web development and so much more!
Don’t hesitate to contact us for more information.