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How business process outsourcing (BPO) affect the Economy?

There are many factors that affect global economies: population, cost of labor, land, entrepreneurs, Investment in human and physical capital, etc. The BPO industry has dramatically affected Economies and global trade. Since when it was started, to now, it is growing. The question that arises are: What about the jobs of first-world people when they lose employment opportunities to third-world employees with lower salaries? What about the economy of their countries? etc.

The answer to all these questions is Job opportunities and business productivity both induce economic growth creating a win-win situation for both parties. It’s a cycle in which everybody can benefit from. People in lower developed countries are getting more job opportunities and developed countries are being able to grow their businesses faster and with more profit rates. 


In India, BPO has helped the economy to grow by providing jobs to millions directly and indirectly. By the end of 2020, job opportunities will increase to 10 million. according to Ernst and Young.

India has presented and proved itself as a major outsourcing destination because of its capable young population. Skilled manpower with 24*7 availability, cost efficiency, updated and advanced technology are plus points.


Fortunately, with advancements in communication technologies, countries with abundant resources and manpower can easily produce to ‘export’ for rich countries that have high demands. With remarkably broadened possibilities of trade, economies grew tremendously locally as well as globally.


BPO has allowed countries to diversify exports beyond agricultural commodities and manufactured goods by constantly evolving technologies have kept firms agile and innovative.

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