Business Process Outsourcing and its Impact to Third World Countries

Business Process Outsourcing has completely revolutionized the way entrepreneurs execute transactions in business. It has also engendered alternatives for industrialized countries that can now focus on reducing capital and labor costs. BPO has impacted different countries in different ways but its impact is more palpable in the third world countries that are focusing on raising their socio-economic development. This impact has generated the will to look at business process outsourcing as something ‘revolutionary’.

Does Business Process Outsourcing maintain Socio-economic Balance?

The issues of rising costs and cost cutting are increasingly becoming significant in a business environment. Thanks to the business process outsourcing that has revamped the revenue for third world countries. Industries over the time have been putting a barrier to draw a line between the rich and the poor and this is undoubtedly, a result of the age-old disparities that always exist in the social strata. BPO contributes big time by uplifting the status of the poorer countries and it’s also believed to trim down the income of the wealthier nations.

How Business Process Outsourcing enters Overall Development Picture?

Not many realize the benefits that business process outsourcing blesses third world countries with. There is no dearth of activists who take it to the streets and make hue and cry by demanding equality between rich and poor. These are the same people who want exploitation to stop and corrupt officials to step down immediately. This is how and when business process outsourcing manages to enter the real picture of overall development.

Even if admittance to this industry is based on certain qualifications, it can’t be denied how business process outsourcing has opened up doors for employment opportunities in the third world countries. Data entry, back end office, medical transcription and the count is on!

Business Process Outsourcing impacts Third World Countries But How?

And this is true regardless of the nature of work within this industry! Business process outsourcing has transformed the fortunes of the third world inhabitants. Labor has migrated from West to East. Now countries like China, Malaysia, Indonesia, Philippines and India can enjoy the benefits of industry level wages, without any risk of migrating abroad. Onshore process outsourcing is just a fraction of western commercial sector.

Future of Business Process Outsourcing in Third World Countries

Economists carry different opinions on the impact of globalization and outsourcing to the third world countries. Companies that belong to the rich companies are expected to intensify offshore process outsourcing in future – credit goes to amazing cost advantages! This process will benefit third world countries more; job gains resulting from outsourcing and earnings would cancel out the negative impact of the ‘brain drain’ in third world countries. Both the parties shall witness a more win-win situation in the upcoming years.

Arrival of process outsourcing is no less than a blessing in disguise for third world countries. Any objection to this will also lead to the erosion of future of first world countries. First world countries have the resources to open up jobs that third world countries can’t. For multinational corporations in the third world countries, outsourcing is a serious boost regarding short term gains with less negative effects and more promising positive impact. Business process outsourcing in future should be seen as a significant part of poverty reduction strategies on the global level.

About the Author:

Roxanne P. is a Freelance and Staff writer who writes informative & creative articles on SEO and Technology for various search engine optimisation company. Her expertise are in writing articles related to broadband only deals, SEO, Social media etc.

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About the Author Empress Of Drac


Empress often finds herself either lost inside her mind or lost in beautiful scenic places. She's currently doing the things she loves while maintaining a minimalist lifestyle. This blog is all about her journey in living a simple and contented life, her quest to see the world via budget traveling, and her love to share to people everything that she is passionate about.

She does not absolutely conform to any beliefs or philosophies. Though she's fascinated with minimalism and is currently embracing the minimalist lifestyle, she doesn't want to define her existence based on these realities alone. For her, life is too diverse, too colorful, too mysterious, it would be a waste of experience (and time) to imprison herself to a few sets of ideas. Google+ | Twitter

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Published by Empress Of Drac

Empress often finds herself either lost inside her mind or lost in beautiful scenic places. She's currently doing the things she loves while maintaining a minimalist lifestyle. This blog is all about her journey in living a simple and contented life, her quest to see the world via budget traveling, and her love to share to people everything that she is passionate about.

She does not absolutely conform to any beliefs or philosophies. Though she's fascinated with minimalism and is currently embracing the minimalist lifestyle, she doesn't want to define her existence based on these realities alone. For her, life is too diverse, too colorful, too mysterious, it would be a waste of experience (and time) to imprison herself to a few sets of ideas. Google+ | Twitter

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7 Comments

  1. BPO impact has generated the will to look at business process outsourcing as something ‘revolutionary’.This is the great and creative writing about the BPO sector.Generally people do not know what is exactly BPO .But here you are explaining the all information efficiently that is reliable for the peoples.

  2. Business Process Outsourcing is surely a god thing for third-world countries. The only thing is when it’l be done and will it really be done? Though I’m sure that large companies are intersted in expanding their power futher on, you never know what decision they’ll make in the end.

  3. Hello empressofrdrac, just dropping here in your blog to say Hi? Anyway,Business Process Outsourcing is surely a god thing for third-world countries is nice because large companies are interested on this kind of opportunity.

  4. I live in the Philippines and I am able to earn decent income for my family because of BPO. Filipinos are hardworking folks and online Filipino workers have been of great help to many American companies who are in BPO. BPO has helped US companies to cut down on labor costs and at the same time, it has helped many Filipinos to earn a living. It’s a win-win situation.

  5. If outsourcing is genuinely helping third world countries, than that is clearly a good thing for them. However if communities become dependent on a company providing work in their area they are at a huge risk if the company decide to pull out.

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