What's Driving the Growth of BPO? The Impact of Labor Arbitrage - I

Topics:
Strategic Management Tools
Tags:
Arbitrage,
Outsourcing,
It Services,
It Operations,
Financial Services,
Everest Group,
Business Process Outsourcing (BPO),
Business Operations,
BPO,
Outsourcing & Subcontracting
Source:
Everest Group

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Overview: To the casual observer, the fundamental sources of leverage - technology, best practices, and scale -- that were behind the growth of IT outsourcing are now driving the pace of BPO outsourcing. However, a deeper look reveals that the primary driver is the combination of labor arbitrage with these leverage points. Labor arbitrage modifies the fundamentals of outsourcing. This article outlines those changes. The article also lists some lessons learned in this context one of which is the combination of labor arbitrage with technology, best practices, and scale to create powerful solutions is driving the increased interest in BPO.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: HTML | Date: Nov 2002 | Pages: 1

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