The global market is estimated to reach more than $US 85 -100 billion by 2010 and exhibiting a growth rate of 10% in demand. Business Process Outsourcing (BPO) allows international firms to focus on their core competencies by outsourcing their non-core business processes to in-expensive best-in-class third party providers. For example, a major U.S. insurance company would focus on its high-value added services, and outsource claims processing to a firm in Bangalore, India, at a 40% cost savings.
Outsourcing has grown from IT services to involve a range of business processes, such as accounting, customer support, data analysis, and others. For the BPO industries to succeed, critical factors must apply such as a liberal and cost effective telecom environment, availability of skilled human resources, and low migrating costs.
The session included speakers from leading consulting, venture capital and IT firms, such as EDS, Washington Technology Partners and NeoIT, who stated their belief that Jordan has a clear potential to capitalize on its favorable trade relationship with the United States and participate in the outsourcing industry. Jordan is the fourth country to have a Free Trade Agreement with the U.S. and has embarked on forming strategic partnerships with the world’s leading economies and significant legislative reforms in order to join the World Trade Organizations (WTO). United Group’s Managing Partner, Faris Gammoh, commented on this potential: “The business model of outsourcing fits very nicely with Jordan’s offering of a skilled and in-expensive human capital, a stable investment climate, as well as an excellent trading relationship with the United States. This allows US firms to reduce their costs and brings the US marketplace to Jordan.”
BPO ventures are viable and profitable businesses that can provide a substantial number of jobs, as evident in India where 3.5 Million people support BPO type businesses. In India, BPO businesses have a turnover of roughly $US 1.5 billion. Abishek Jain, CEO of Washingon Technology Partners, commented on the investment opportunity: “It is estimated that India has only 2% of the global market, leaving 98% of the global market share for new entrants like Jordan”.
The web cast was part of an effort to bring this session to Jordanian IT businesses at GITEX, the Middle East’s most significant IT exhibition held last week in Dubai. It is available at www.e-dmn.com/unitedgroup/webcast.htm. The BPO session was sponsored by United Group Management Consultants and web cast online to viewers around the world by e-Dimension, a member of the Jordan Telecom group.
AJEX 2003, was a two-day conference and exhibition held last week under the patronage of His Majesty King Abdullah II, and aimed at promoting trade and investment opportunities between Jordan, the U.S. and the region.
Wednesday, October 29- 2003 @ 11:21 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.