The Impact of Technology on Cost in Business Process Outsourcing




Many different factors contribute to the cost of a business process outsourcing (BPO) engagement. Among them, IT, especially software, is a key cost determinant that is often underestimated. While software licenses and maintenance typically represent no more than 3% to 5% of a BPO provider’s total cost, they directly drive process automation that immediately impacts the cost of operations. Technology drives the BPO cost structure in three ways: it enables economies of scale, supports sus...
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