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5 Factors Affect BPO Industry

Companies operating in various industries have recognized that business process outsourcing is a leading solution in exploiting talent, taking advantage of cheap labor costs and reasonable infrastructure cost. Benefits such as lower costs, effective improvement, faster capital turnover and flexible human resources make the BPO industry more attractive.

In this article, we will learn about 5 factors that influence the development of the BPO industry:

The legal environment affects BPO services

This challenge primarily comes from the nature of outsourcing – to find professionals around the world who are able to accomplish tasks for your business. This is the main challenge of BPO industry since it started to grow strongly. The United States is one of the first countries to address this new legal issue. The country’s regulatory authorities have created many legal documents related to regulations for BPO partners and those working in the BPO industry. Managers of the European Union, the Philippines and India are still working on this legal framework.

BPO business process outsourcing service and business cost

Over time, the BPO industry has grown into a huge revenue-generating industry, but budget and business costs remain a major concern for many company using business process outsourcing services.

BPO companies are committed to providing the best performance, while their service costs are expected to be minimal. This puts great pressure on the resources of these BPO companies as they are forced to at the same time ensure the best quality of services as well as apply the optimal measures to keep costs low.

Customer expectations and service quality

All industries are affected by a key factor – a customer-focused market – and the BPO industry is not an exception. This means that the BPO industry has to provide the best possible performance for customers. Data entry companies have to ensure the most reasonable time and cost of work. In many cases, companies providing outsourced BPO services or online data entry outsourcing services also have to advise and maintain regular contact with their customers.

In particular, customer expectations are even stricter for outsourcing companies that have just entered the market. To compete with long-lasting companies in the market, these companies have to reduce service costs or profits by spending more to recruit top talent to improve service quality. .

The decline in the number of employees

The decline in the number of employees has always been one of the significant challenges faced by online data entry outsourcing companies, even large companies. The script repeats over time. BPO companies recruit new employees, invest time and resources to train professional skills for them. After that, the market demand for that particular job decreases and the data entry companies are forced to get rid of these employees. This greatly increases the time and money spent training new employees.


All mentioned factors affects the branding strategy of BPO companies and their future in the market. With so much volatility in the market, BPO companies will not be able to develop a long-term branding strategy, this slows down the branding process significantly. Anyway, these companies are forced to invest more than others in their branding efforts if they want to become recognizable in the global BPO market. All businesses in the BPO industry should take into account and consider learning from practical experiences from successful BPO companies to apply for their organizations.


With a team of professional, skillful and experienced staff, BPO.MP Co., Ltd is proud to be a reputable data entry company and strive to become the best data entry company to provide top quality online data entry services with competitive prices, satisfying all customer needs.

BPO- Business Process Outsourcing is very essential for every business.

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For further information, please contact the Hotline: 0931 939 453 or email to: Info@mpbpo.com.vn