Countries with the Highest BPO Ratio

Business Process Outsourcing (BPO) has since long become a lucrative practice in conducting business. Organizations have begun to outsource to various countries in search of the best labor, cheap prices, and flattened overheads. However, becoming a country with a high BPO ratio is not an easy feat. To entice outsourcing clients, there are many factors which matter: Currency exchange rate, Governmental policies e.g. registration and taxation, Availability of infrastructure and raw material, and Skillset and work ethics of labor, etc.

However, there are many countries in the world to have currently made their mark in the field of outsourcing by providing some or all the factors mentioned above. The countries with some of the highest BPO ratio include:

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India is one of the best countries to outsource your work to. This is because most of the educated professionals in India are well-versed in the English language and thus can absorb guidelines and instructions well. The work of such professionals is of high quality, owing to the effective system of education. Especially popular in the field of Information Technology (IT), the number of graduates India churns out in STEM programs continues to rise. The high quality combined with low costs (as low as $15/hour for a developer) make India a profitable home ground for outsourcing activities. The favorable governmental policies are also a big plus – e.g. tax reductions and exemptions to the IT industry.

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You must have seen most products in your home sport the label of ‘Made in China’ at the back. This is because China continues to attract outsourcing opportunities so much so, that there are many American companies whose assembly plants are located in China due to the incredibly low costs. The low costs come to assistance in manufacturing due to the further discounted rates enjoyed by firms when they place orders in bulk. Furthermore, China is highly population. This leads to greater manpower and thus a variety of skills available at low labor costs. More labor is also coupled with a faster rate of production. Thus, China shines with its vast availability of labor, raw materials, and good work ethics. However, since only a fraction of the population knows how to converse in English, the language barrier may persist in outsourcing.

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With a time zone highly compatible with North America, and a currency which ranks inexpensive when compared with the US Dollar, it is no surprise that Brazil is becoming one of the hottest spots for outsourcing. Although it wasn’t always such, Brazil got its big break in the world of outsourcing in 2008, whereby it saw an approximately 75% increase in outsourcing revenue. Thereafter the trend has been upward. With quality staff, experienced workforce, and good English skills, the Brazilian workers are often recommended for outsourcing.

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The Philippines

Second perhaps to India only, the Philippines has made its mark in the outsourcing industry in a short span of time. An economic zone was set up in 1995 to promote outsourcing, and thereafter there was a rise in the BPO ratio. Firstly, the Philippines has a low cost of living. With up to 60-80% less operational costs, profitability ranks high for those who outsource to the Philippines. The workforce is proficient in English, while the literacy rate is at an all time high of 97.5%. with more than 500,000 graduates churning into the market per annum, the workforce is skilled as well as flexible – making them just the right fit for an organization wishing to outsource.

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Still considered a newcomer in the outsourcing industry, Malaysia has especially made its presence known in the IT sector. With governmental support aimed towards digital and tech-related programs, the laws of Malaysia are especially in favor of outsourcing, such as the IP laws and copyright protection. With a technically skilled workforce, well versed in English, Malaysia has great potential to continue capturing the BPO market. However, its volatile political situations do uphold a threat to a consistent outsourcing graph.

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