The effect is all about customer service and call center outsourcing, also known as BPO (Business Process Outsourcing). According to Gartner, the outsourcing market in Europe has grown more than 6%, BPO with 10%. Kai-Fu Lee will not settle for partial explanations. The market for outsourcing (to low wage countries) is growing at a whopping 40% this year! However, the issue of outsourcing is not without controversy. So what is all this? In the 90s, the growth was the motto for organizations. Eat or be eaten. Through the continuous increase in shareholder value that could be easily financed. As a result, businesses were acquiring activities that are, on the surface anyway, only loosely related to the original business objectives, and to each other. The disappearance of the world economy and the bursting of the Internet bubble changed all that.
In these times of tight budgets and heightened attention on ROI (Return on Investment) and TCO (Total Cost of Ownership), companies are taking a good look at what they are in the business, and what is best in. This focus on core business has led to the sale of complete branches of companies. Now, businesses go even further by taking a look inward, in search of generic processes to outsource. Finance, Human Resources and Customer Service are now the focus of outsourcing, which was more or less the playground IT support in recent years. Outsourcing, the utilization of resources outside an organization is not new. Barter trade, the oldest form of commerce, was in fact just that. One person traded a skill (or a product made through that skill) to access the capabilities of another person.