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Outsourcing and Offshoring of labor may sound a fairly recent phenomenon but its roots run all the way back to the 60s. Subtle as it may seem but today's BPO industry has its predecessor in the form of time-sharing - the multiple but intermittent use of a computer machine by two or more users.
During the 80s, when the internet first became commercially available, many companies opting to get connected had to outsource their IT operations due to a number of reasons; lack of labor and expertise, circumvention of equipment acquisition and maintenance cost, and underdeveloped infrastructure.
The late 90s stood witness to the birth of IT-enabled business-to-business partnerships, which is the direct ancestor to Business Process Outsourcing (BPO). The world continues to experience a proliferation of BPO vendors operating in a number of outsourcing hotspots led by India, the Philippines and China. These countries enjoy annual revenues exceeding $10 billion, except for the latter albeit still raking more than $300 million a year from its technology outsourcing market alone.
Outsourcing has become a paradigmatic business structure that many entrepreneurs want in on this new trend. But like many business models, business process outsourcing is not for the faint of heart. The business has its fair share of risks and challenges, which can be hedged through an intensively developed business plan.
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