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Pakistan's Growing BPO (Business Process Outsourcing) Services Market

February 13, 2005. Dinar Standard

By Rafi-uddin Shikoh




What image comes to mind when you hear the word 'Outsourcing'?

Unless you've been completely disconnected with the global economy, you're most probably picturing young Indian college graduates, in a large facility sitting in front of state-of-the art flat-panel computer screens with phone headsets on. You're probably hearing the buzz of these professionals speaking in English, servicing customers halfway across the world.

Well, you might as well start imagining some of these callers operating from neighboring Pakistan! At least that's what more than 100 Pakistani BPO (Business Process Outsourcing) providers would have you imagine. With some comparable skill-sets and unique advantages of their own, these service providers are making a run for this huge market.

BPO (Business Process Outsourcing) is essentially a strategy by which a company offloads back-office operations to reduce costs and to put more resources towards its business strengths--or in MBA vocabulary, its 'core-competencies.' For example, a large supermarket chain in the United States could outsource most of its accounting work to a low-cost accounting services company in Pakistan rather than maintain its own large internal department. In return, the supermarket chain saves money and is able to focus more on its development and marketing.

According to Gartner, a recognized technology research company, the BPO services market was estimated to be $131 billion in 2004.


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