Where Are Most BPO Companies Located?

Map with the percentage of businesses that use outsourcing by country

Business Process Outsourcing (BPO) companies can be located anywhere in the world. Two different options become available as more processes get outsourced to third-party organizations. The responsibilities can involve the front or back of the office, which can be nearshore or offshore opportunities.

Nearshore BPO companies are in neighboring countries from the business seeking outsourcing assistance. Offshore options are located further away.

Here is a closer look at where BPO companies are choosing to locate and the reasons behind that decision.

List of the Top Countries for BPO Companies

Although the United States and Western Europe have seen a surge in BPO growth, the top locations for these businesses have remained relatively constant since 2010.

1. India

With one of the largest English-speaking populations in the world and lower labor costs, there is a skilled talent pool in this country that handles outsourcing well. The educational system here focuses on technology and science, which is perfect for companies that want to outsource software development. India provides 44% of the software development services currently in demand globally.

2. El Salvador

One of the newest additions to the most popular countries for BPO companies is only two hours away from North America. It’s growing in popularity because collaboration and communication are simplified while labor costs remain relatively low. The government is the first in the world to make cryptocurrency (Bitcoin) its national currency, allowing for quicker funds transfers and payments.

Businesses from over 70 countries have outsourced services to El Salvador, with some BPO companies experiencing 60% growth since 2017.

3. The Philippines

Numerous multinational companies outsource to this country, including IBM and Microsoft. One of the reasons why BPO companies are popular here is due to the high literacy rate in the Philippines, which is often at 98% or higher. The government has beneficial tax laws that attract outsourcing opportunities, such as the Philippine Economic Zone Authority, which helps to keep overhead expenses low.

There is a reason why over 1,000 BPO companies are active and expanding in the Philippines, with an average growth rate of 8% to 10% each year.

4. Mexico

Mexico is a nearshore opportunity for American companies that handles front and back responsibilities efficiently and reliably. A close time zone to the United States makes collaborating easier. Although the average salaries are higher here, it is a chance for businesses to outsource customer service or human resources without worrying about numerous cultural differences.

5. Argentina

With overlapping time zones in North America and European influences, many BPO companies are starting to see Argentina as a viable option in South America. A growing tech hub, supported by a well-developed higher education system, ensures that programmers, coders, and other IT-related careers have adequate staffing. The average salary is comparable to the Philippines without the timing challenges for collaboration.

As the world becomes more productive and requires processes to work quickly and efficiently, more BPO opportunities will develop. The countries on this list are poised to continue expanding their market share because of their supportive infrastructures.



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