An article on
“Scope of Business Process Outsourcing
(BPO) in Bangladesh”
A.F.M. Nazmul Alam Zico
PNS Media & Communications Ltd.
77/2, Shah Ali Bagh, Mirpur 1
Dhaka ‐1216, Bangladesh.
Website: www.clippingimages.com

Business Process Outsourcing (BPO) is a form of outsourcing which involves the
contracting of the operations and responsibilities of any specific business functions to a
third‐party service provider. BPO is typically classified into Back office outsourcing and
front office outsourcing. BPO that is contracted outside a company’s country is called
Offshore Outsourcing. And if BPO is contracted to a company’s neighboring country is
called near shore outsourcing.
BPO helps to increase a company’s flexibility, that’s why BPO is growing popularity so
rapidly. Most services provide by BPO vendors are offered on a fee for service basis. This
helps a company transforming fixed into variable costs. A variable cost structure helps a
company responding to changes in required capacity and does not require a company to
invest in assets, thereby making the company more flexible.
Another way in which BPO contributes to a company is that a company is able to focus
on its core competencies. Key employees are herewith released from performing non‐
core and can invest more time and energy in building the firm’s core businesses. The key
lies in knowing which of the main value drivers to focus on – customer intimacy, product
leadership, or operational excellence. Focusing more on one of these drivers may help a
company create a competitive edge.
Now let us have a look at the scopes and benefits of BPO in this present global economic
scenario.
Today in Bangladesh BPO is the most upcoming and rapidly growing industry
attracting the educated youth all over the country. BPO workforce offers several
advantages over their western counterparts both in terms of cost savings (low‐
cost labor) and availability of resourceful manpower.
The revenue generation by BPO and KPO industries in Bangladesh is now much
higher than those of previous years. Almost two lakh people are involved in this
industry and the countdown is ticking fast.
The Everest Research Institute predicts the opportunity for global BPO will mount
to USD145 to 165 billion for South Asian based services, within the next five
years. The outsourcing of BPO projects from the insurance sector will have a
steady rise, about 12‐15 times simultaneously, according to the report.

Banking sectors and other financial firms are undergoing significant cost‐
reduction pressure and are therefore planning to move jobs offshore like call
centers, data processing etc.
So it is clear that if we can plan our future strategies in a right track then BPO will gift
Bangladesh a giant lift. And after a certain period of time we will find a handsome
amount of IT geeks in our country.