Price structure in the BPO Service Sector

BPO services differ widely and as such prices and margins are also different for the wide range of BPO services. It is very hard to give price and margin estimations. However, as the economic activity in most countries is growing, there is more room for BPO. Prices in most offshore and nearshore destinations in developing countries have risen but margins depend on the efficiency of a company and the type of service.

Options for distribution of BPO services
There are several options BPO offshore providers from developing countries such as Kenya.

1.Joint ventures through establishing co-operation with a BPO provider in a developed country such as USA or EU.
2.Referrers can be used as a different kind of intermediary. They take on the outsourcing projects themselves but then offshore parts of these processes. These are companies that are contracted by their clients (e.g. in the EU) to render certain services. These may be services such as call centres, accountancy, market research and HR. However, these services are not (fully) rendered by the contracted party in the EU.
3.Brokers/consultants can also be used to advise on a BPO strategy or to help the customers identify which projects can be outsourced. They assist in the proposal process, identify service providers for the project concerned and help the customer to negotiate the best-price from the service providers.
4.Having a local sales office situated in the outsourcing country such as USA or EU to directly market your BPO services
5.Establishing direct contact with companies in the outsourcing country that want to offshore/nearshore services – although this could prove to be very difficult for SMEs in developing countries.

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