The concept of BPO is explained by analyzing primarily the Asian developing countries’ economy and the market situation. Outsourcing has been recently clubbed together with the advanced use of information technology to invent a tool called BPO, which is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service. Typically, companies that are looking at business process outsourcing are hoping to achieve cost savings by handing the work to a third-party that can take advantage of economies of scale by doing the same work for many companies. Or perhaps the cost savings can be achieved because labor costs are lower due to different costs of living in different countries. The question is where are we heading to? Are the businesses utilizing the nth advantage of BPO also or are they leaving something to be done in the ‘brick and mortar’ rooms of an organization? My research paper probes into the possibilities and the likelihood of BPO being the precursor of a totally digital firm that adopts a new business model, the functions and activities of the management that are spread globally, communicate, share and disseminate information required to operate successfully, on a habitual basis. The tasks are completed regionally but outputs and profits are generated globally.

The concept of BPO is explained by analyzing primarily the Asian developing countries’ economy and the market situation. Outsourcing has been recently clubbed together with the advanced use of information technology to invent a tool called BPO, which is the act of giving a third-party the respons...