BPO

BPO is short for business process outsourcing. In the last two decades, outsourcing has been the best way for Western companies to save financial resources. BPO follows in the footsteps of mergers, and has also had its fair share of controversies. But for people in the Third World countries like India, China and the Philippines, outsourcing has been a crucial source of additional high-paying jobs.

Off shore labor force is not only cheap, they are usually composed of people that because of their financial circumstances and culture are better suited to the jobs being outsourced. Outsourcing has become a necessity for most multi-national companies. This is mainly due to cheapness of offshore skilled labor. But there are other factors taken into consideration. Compared to China, for instance, the US has fewer degree holders. The Philippines has a huge amount of college-educated labor pool that is bound to grow bigger. Another reason is skill distribution. Some countries have a higher concentration of a specific skill that other countries lack. A good example would be programmers. There's a huge demand for programmers in many Western nations, more than nation's educational system can provide. Outsourcing, then, becomes a good alternative to importing highly skilled foreign nationals.