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Business Processing Outsourcing (BPO), the practice of contracting operations and responsibilities of a certain function to a third party vendor, has become a pivotal tool in the success and continued growth of multinational corporations and businesses.

The need to cut costs while maintaining quality and productivity has urged many firms to explore the following options: outsourcing and offshoring. While both terms have been used interchangeably in most of today's business literatures, they technically refer to two different things.

In today's cut-throat economy, offshore outsourcing is one of those solutions that have emerged to remedy the need to reduce expenditures and produce more in a limited amount of time.

Outsourcing may sound like a 21st century concept, but it has essentially been existing for a very long time.

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