BPO and the Global Economy: The East’s Assumption of Power
The BPO phenomenon has changed how the United States and Europe regard the emerging nations of the East in recent years as a result of the growing globalization of the international economy. For instance, the growing trend of businesses outsourcing back office work to the Philippines and India has given the West a favorable perception of the professionalism and work ethic of the Asian nations.
Of course, with the first surge of outsourcing in the IT sector and the manufacturing industries to India and China respectively had done their bit to shift the opinions of the West towards the East. Through the BPO phenomenon, which has destroyed various prejudices linked with Asian countries, Westerners’ perceptions of the East have been significantly enhanced.
The other part of the BPO phenomena is that, in terms of performing work connected to back office operations, more and more Asian countries are advancing up the value chain. With the number of patents being filed on behalf of technology and KPO companies, this has led to a greater emphasis on performing high-end work, and the East is no longer the laggard that it once was; instead, it now competes on an equal footing with the West. It is true that research and development were carried out in South Korea and Singapore even in earlier decades (to name a couple of countries). China and India, on the other hand, were thought to be permanently hampered by resource scarcity and population growth. The fact that these two nations are being discussed seriously by western firms is to their credit.
The third facet of the BPO phenomenon is the growing assurance with which Asian nations like India have been able to foster a group of professionals who are self-assured and feel empowered to think large. India and China do have an advantage in that their labor force is largely young. We discussed how expanding populations in India and China in prior decades were a burden in the previous paragraph. Strangely, it is these very flaws that have helped these nations shift the tide in their favor, and this is an amazing accomplishment.
Last but not least, the BPO phenomenon has also led to India adding a sizeable sum of dollars to its foreign reserves, which is undoubtedly another achievement for the country. It would be logical to assume that the BPO companies would benefit from the recent decline in the value of the rupee because it boosts their competitiveness and at the same time results in higher rupee earnings. All of these changes show a shift in power toward the East in terms of efficiency and competitiveness. The East is no longer regarded as a region of mystics; instead, it is now true that these nations are global leaders in both manufacturing and services.