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Posts on Jan 1970

Is Automation a Threat to the BPO Industry?

The Business Process Outsourcing (BPO) industry in the Philippines employed 1.3 million professionals and generated $25 billion in revenues last year. It is expected that by 2022, the Philippines’ BPO sector will generate revenues of $40 billion and account for 15 percent of the outsourcing market in the world.

However, the past few years have seen robotic process automation (RPA) and other automation technologies emerge—putting 89 percent of the BPO sector at risk, according to the International Labor Organization. As RPA technologies become increasingly advanced and widely used, processes that were once outsourced now require less human intervention.

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Building a Scalable Business Through Outsourcing

A scalable business is something that all entrepreneurs aspire to achieve—but what does this exactly mean?

Simply put, scalability means the ability of a business to respond to increasing demand or workload, and its potential to multiply revenue with just a minimal incremental increase in its costs. One of the most effective tools to scale your business is outsourcing, wherein a company hires a third party to accomplish a specific function or activity.

When the need arises, outsourcing allows businesses to expand their capacity easily without requiring them to formally hire new staff, invest in more office equipment, and lease a wider space—in short, without increasing the fixed overhead costs.

So how can companies leverage outsourcing to establish a scalable business?

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