Evolution Of BPO Industry: Journey From Call Centers To Cloud Services

When we hear the term BPO, most associate it with call centers. But are BPOs just call centers? We all know the BPO industry is much more than that. It started its journey from the calling process and has evolved into a business that generates billions of dollars. BPO is critical in enabling modern global corporations to operate efficiently. In this article, you will learn how the Business process outsourcing industry evolved over time and how it’s contributing to the world at the present time.

World Without BPO

Outsourcing has a history even before the internet ever existed. Without BPOs, 24/7 customer support wouldn’t be available to the world. Handling round-the-clock IT support, maintaining global supply chains, payroll systems, manufacturing, and access to global talent and knowledge would be challenging. It’s hard to imagine a modern corporate environment without BPOs!

Rise of Business Process Outsourcing: The Beginnings

It’s fascinating to see how much the internet has impacted various industries; BPO is no exception. From the late 1990s to the early 2000s, the internet was a game-changer for BPO, allowing it to grow and become an economic driver for countries like the Philippines. More and more firms are outsourcing non-core business operations to countries such as India, China, and the Philippines, where cost-effectiveness is the main focus to increase productivity and profits. As a result, the number of call centers and organizations that provide back-office support has significantly increased. By outsourcing operations not central to their core offerings through partnering with business process outsourcing companies, companies have gained a competitive advantage, reduced costs, and improved customer service.

Emergence of Call Centers

Outsourcing has been around for quite some time, dating back to the early 20th century. Companies leveraged it as a means to outsource their telephone customer service operations. Back then, call centers were the go-to solution for these businesses as they specialized in providing customer service over the phone.

Expansion of BPO into other areas

BPO expanded beyond customer service as companies expanded their outsourcing needs. The increasing demand for IT, accounting, and technical support services led to the evolution of BPO into a comprehensive solution for all business operations. Technology played a significant role in this growth, allowing companies to outsource these services with ease and efficiency.

Growing Multilingual BPO Services

As the world becomes more interconnected, businesses seek multilingual BPO services to help them expand into new markets. This has led to an increased demand for providers who can offer support in various languages, making it easier for companies to outsource their operations to a provider who understands their needs. With the right partner, businesses can take advantage of the benefits of outsourcing while maintaining the highest quality and customer service.

The Advent of Robotic Process Automation

Robotic process automation (RPA) has become a popular technological solution for many companies looking to streamline their operations. With RPA, businesses can automate repetitive tasks that would otherwise require human intervention, saving time and reducing costs. This has resulted in a greater demand for BPO services, as companies seek to take advantage of the benefits of RPA. By harnessing the power of automation, businesses can improve their efficiency and productivity, ultimately leading to more tremendous success and profitability.

Transformation from call centers to cloud services

It’s fascinating to see how much the call center outsourcing industry has grown and continues to grow. With a market worth $140 billion, it’s no surprise that companies are turning to innovative methods to stay ahead. Cloud technology is a game-changer for call centers because it offers scalability and security. Businesses can start with minimal investment and add more resources as they grow, and they can rest assured that their customer service is reliable and secure. The cloud is revolutionizing the customer service and support industry by allowing businesses to provide high-quality service at a lower cost, which is a win-win situation for businesses and customers. With the ability to offer service worldwide, in different languages, and around the clock, businesses can provide excellent customer service and support to their clients anytime and anywhere.

Evolution of BPO: The Future

Business process outsourcing (BPO) is the practice of hiring a third-party service provider to handle specific business processes. While initially limited to contact center services, BPO now encompasses many functions, including human resources, information technology, accounting, and customer service.

According to industry estimates, the global BPO market was valued at $153.5 billion in 2016. It is projected to grow at a compound annual growth rate (CAGR) of 6.4%, reaching $248.5 billion by 2021.

Of all the segments in the BPO market, contact center services are the largest, accounting for 37.0% of the total global BPO market in 2016. This segment is expected to grow at a CAGR of 7.2%, reaching $97.5 billion by 2021.

As the BPO industry continues to evolve, new trends and changes will undoubtedly emerge, leading to new ways for companies to outsource their operations.


The BPO industry is transforming significantly, from traditional call centers and on-premise software to cloud-based services. This shift has been driven by the need for greater flexibility and mobility in the workplace and the cost savings and improved efficiency that cloud services can offer. By embracing cloud-based BPO solutions, businesses can achieve scalability, flexibility, and reduced costs, making them more competitive on a global scale. For more exciting updates about the BPO