Many businesses are already convinced of the benefits of outsourcing IT-intensive operational processes to a third party. They can gain more flexibility, cost savings, and the ability to embrace new and innovative services, all while reallocating employees’ time to pursue strategic goals.
However, selecting the right business environment for a BPO partner is critical. Choosing a BPO hub with low entry barriers, a highly trained workforce, and low operating costs can provide transformative business opportunities. If you get it wrong, those opportunities could be lost.
Opportunities for Outsourcing
In today’s global market, which has been impacted by macro events such as the Covid-19 pandemic, geopolitical instability, and the climate crisis, businesses are looking for new ways to maximize their efficiency and agility. Simultaneously, in order to remain competitive, they intend to reduce operating costs and accelerate their progress toward strategic investments.
A number of key trends and growth opportunities are providing new opportunities for BPO companies to expand. One example is innovation. The increasing adoption of technological advances such as cloud computing and AI is generating new operational efficiencies and capabilities. The rise of cloud computing is one of the drivers of BPO adoption, allowing BPO operators to offer tech-enabled reduced time to market, lower costs, and improved quality. As a result of the Covid-19 outbreak, the corporate world has adapted, and teams can now be located across continents, allowing decision-makers to set up cheaper operations in new markets with highly skilled talent pools.
Another important trend is the diversification of BPO opportunities for businesses in terms of scope and scale. Accounting, compliance, human resources, IT services, payments, and quality assurance are examples of back-office BPO operations. Businesses can also consider outsourcing front-office functions such as customer service, sales, and marketing. BPO is in high demand in industries such as healthcare, banking, information technology, and telecommunications.
Because of the tech-driven, ever-expanding world of business services covered by BPO, businesses now have revolutionary operational opportunities at their fingertips. To remain competitive, decision-makers can reallocate time and resources away from peripheral functions and focus on core competencies such as customer relations and product leadership. When compared to in-house departments, BPO partners can frequently offer lower costs, improved service quality, and more accurate reporting. What is the end result? Greater business productivity and market agility.
The ideal location
Businesses interested in BPO opportunities must still choose the best partner in the best business environment. Tax rates, regulatory restrictions, talent availability, and geographical location all play a role. For example, a lower income tax environment and a cheaper labor force mean that both BPO companies and their clients stand to gain a competitive advantage by taking advantage of Georgia’s unique business environment. Meanwhile, a highly skilled, multilingual workforce will enable outsourced functionalities to provide a high-quality service.
It’s no surprise that several BPO titans are expanding their presence in Georgia. Examples include Concentrix, Asseco, Evolution, EPAM, and Majorel. According to a spokesperson for Majorel, Georgia’s “engagement of local employees, business-friendly investment climate, and partnerships with both state and private local institutions” made it an ideal location to establish and grow operations.
Georgia has a multilingual, skilled, and reasonably priced workforce. Because of the country’s relative energy independence, it can offer world-beating living costs. Over 40,000 people work offshore in IT and BP. The government intends to train 5,000 IT professionals by the end of this year. This workforce of 1.6 million people, nearly half of whom are under the age of 45, comes with a flexible labor code, with labor productivity expected to grow at a 5.8% annual rate. The government funds and facilitates customized vocational education programs, with approximately 2,400 new students enrolling in IT courses each year. Georgia’s competitive strength is reflected in its thriving service industry, where exports increased by 61% between 2020 and 2021.
A World Bank investigation determined that Georgia was the seventh-easiest country in the world to do business in. It is the world’s third least taxed country in terms of total tax rate, with 0% tax on retained profit. It has a strategic location, cultural similarities, and is close to major markets; citizens of 98 countries can visit Georgia without a visa and stay for up to a year. High-speed internet and robust network connectivity make it ideal for IT activities, and the government’s Log in Georgia program will provide broadband internet to all settlements by 2025.
Georgia’s FDI grant offers BPO companies a 15% cashback on qualifying capital expenditures and training costs. The scheme aims to encourage FDI growth, as well as the transfer of knowledge and technology and the creation of new jobs. IT activities are also subject to preferential taxation, with personal and corporate income taxes reduced to 5% for multinational corporations.
Choosing the right BPO partner is a critical decision for any business. Georgia provides an ideal environment for offshore business processes. To learn more, download the whitepaper on this page.
Source : investmentmonitor.ai
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Outsource Guru, headquartered in Singapore, is an established Industry Leader in Business Process Outsourcing Solutions and Software As A Service (SAAS) Integration. Currently partnering MSME’s and large corporations across 12 different industries globally, Outsource Guru has produced phenomenal results by successfully integrating AI technology and restoring workflow efficiency.
With its integrated grid of business solutions and a highly skilled international workforce, Outsource Guru is now the partner-of-choice for business establishments globally.
