| BPO and KPO. They may mean nothing to millions of | | | | The Growing Outsourcing Market |
| people, but to thousands of businesses, they mean | | | | Estimates are that the demand for outsourcing will, by |
| saving big money by outsourcing. BPO stands fro | | | | 2010, grow to fifty billion dollars a year in the US alone; |
| Business Process Outsourcing, and KPO for | | | | the global market is already increasing at a greater |
| Knowledge Process Outsourcing. The difference | | | | than forty percent rate annually. Of the fifty billion |
| between then is in the type of work being outsourced. | | | | which the US will be spending by 2010, over sixty |
| Business Process Outsourcing is the outsourcing of | | | | percent, or thirty billion, will go to India, with its |
| jobs related to customer service, like call center voice | | | | well-educated, technology literate, English-fluent, and |
| communications, and telemarketing. Knowledge | | | | inexpensive workforce. |
| Process Outsourcing is the outsourcing of IT | | | | And technology companies aren't the only ones taking |
| processes which require outsourcing consultants with | | | | advantage of outsourcing consultants; the finance, |
| specific technological backgrounds. These outsourcing | | | | engineering, pharmaceutical, and biotech industries are |
| consultants must be able to handle complex | | | | all benefiting from the trend. |
| informational transactions like legal research, insurance | | | | Risks Of Outsourcing |
| claims, and patent searches. | | | | But any company considering outsourcing its |
| Many companies turn to outsourcing consultants to | | | | consultants may be in for a big disappointment unless it |
| provide them with the intellectual and informational | | | | first designs a clear outsourcing plan. Outsourcing |
| resources they lack, and for a fraction of the cost it | | | | consultants will only produce quality results if the |
| would take to hire staff with comparable abilities. The | | | | company's management and the team responsible for |
| cost of labor in developed nations continues to climb, | | | | the work being outsourced oversee the project in |
| and many companies are doing whatever they can to | | | | such a way that it does nothing to negatively affect |
| maintain their profit margins. | | | | the company's reputation, customer base, and future |
| So outsourcing consultants for important work is | | | | operations. |
| becoming more and more common, and there are | | | | Companies using outsourcing consultants should invite |
| companies which give most or all of their intellectual | | | | to give their input into the outsourcing plans early in the |
| work to outsource consultant providers in India, the | | | | process, to make sure everyone understands what is |
| Philippines, Malaysia, and other developing nations. The | | | | expected and reduce the risks, which can include the |
| Internet, of course, has made outsourcing consultants | | | | company's local workforce resenting having to |
| on such a massive level possible. | | | | cooperate with an offshore consulting operation. |