Multinational Companies' BPO Strategy And The References To China

BPO, the abbreviation of "Business Process Outsourcing", refers to the fact that the enterprise outsources the non-core function or business to the professional service structure. Recently, due to the consideration of reducing the cost and improving the efficiency, the European and American enterprises transferred the back-office business such as finances, customer service, data process as well as the software development, etc. abroad, which forms a new globalization tide. Comparing with India and Ireland, the BPO industry in China just started and it has become the most concerning topic for the fields of theory and industry that how to complete the transmission from "Global Factory" to "Global Office".Worldwide speaking, the BPO business is still at an elementary development phase, even the germination phase in China, with less theory and literature. By the advantage of close to the domestic BPO frontier, the author collected and tidied a great amount of information and data, explained and proved by means of mature international trade theory through ways of concluding and analyzing, thereafter understanding and grasping the arising cause, current status, developing tendency of BPO. Multinational company is the greatest driving force to BPO development, who serves as the most significant consignor as well as the most active contractor. Set foot in the research on the BPO strategy of the multinational company, this article digs the development rule of BPO industry to provide the development strategy of domestic BPO industry.The research proves that it bears a close relationship between the development of BPO and the globalization strategy of multinational company. In order to lower the cost and enhance the efficiency, the multinational company fulfills the resource configuration worldwide and forms some link into its subsidiary company providing the professional service to the parent company, which will develop to a professional BPO company later on. While with the development of BPO, more and more subsidiary companies arise and grow quickly. BPO industry has a quite positive influence on the economy of the hosting country, which can push the economy efficiently, facilitate the employment, produce the technology overflow, drive the development of the infrastructure and relevant industries. Currently, there have been several centralized BPO industrial center around the world, among which India and Ireland are still the main outsourcing centers. The BPO industry in China is still at the beginning phase with incomplete policy and laws and most business lying on the low-end of the value-chain, however, it is well recognized that China is another rising outsourcing center.Through several years' development, the BPO industry presents the status of jointly development of scaled increase and structure adjustment, the BPO is approaching the core business layer of the enterprise with higher technical content, as well as the narrower market subdivision and higher depth. With the advantages of stable political environment, abundant human resource and the disadvantages of lack of experience, English talents, different accounting, legal, financial system with that of the England and USA, the ways of strengthening the comparative advantages, enhancing the core ability, improving the policy and laws, expanding the domestic market greatly have become the best ones for China's BPO industry to develop.