What Is Domestic BPO?

A. Leverkuhn

Domestic business process outsourcing is a partnership between two businesses in the same country, where one outsources some elements of operations to another. This type of business process outsourcing stands in direct contrast to international BPO. Many business journalists and others are considering how domestic BPO arrangements may be changing conventions in some fields and industries.

Investment in domestic call centers signals expected strong demand for outsourced services within a country.
Investment in domestic call centers signals expected strong demand for outsourced services within a country.

Experts have pointed out some specific benefits of domestic business process outsourcing. These include consistent legal and regulatory standards between the two companies making the BPO deal. It’s also important that in domestic BPO, staffers at the two companies typically share the same language and culture, which can make a meaningful difference in how outsourcing is implemented.

Today’s business journalists are reporting that some nations involved in the BPO industry are “betting on” future domestic demand for BPO. This involves training of staffers, allocation of resources for BPO equipment, and other investment. One major example is call centers, where many business processes get outsourced through a call center environment. When a country’s firms are investing in call centers for domestic BPO, they are anticipating a vibrant demand for these services.

Another thing that some business journalists are reporting is related to research on the “hard numbers” for the average BPO arrangement. What some are finding is that domestic BPO deals are more likely to include multiple components. That means that companies which outsource within their country are more likely to outsource multiple processes. For example, many domestic business process outsourcing setups include both IT and communication processes.

In explaining the positives of domestic BPO, a business writer might give an example of how a company found good outsourcing partners within its country’s borders. Some of these examples show up in popular business magazines or web periodicals, informing domestic business leadership. For example, a major domestic company might successfully move its telecom operations, payroll, customer calling, or IT services to a separate company within the country. Often, the greater industry pays attention to major deals within that field or market.

Many people involved in the business world are considering how some regions of the world might be preparing for increased domestic BPO demand. Similarly, business leaders often evaluate various domestic BPO offers to see if they make more sense for a particular business process than international outsourcing options. Predicting the future of domestic and international BPO helps to keep a company informed about all of the options that may be available in the future.

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