What is one effect of globalization on Business Process Services (BPS)?

The impact of globalization on Business Process Services (BPS) is profound, particularly in terms of access to specialized skills. Globalization allows companies to tap into a worldwide talent pool, enabling them to find employees with specific skills that may not be readily available in their domestic markets. This expanded access facilitates companies in optimizing their operations by sourcing specialized expertise from various regions, ultimately improving service quality and efficiency.

For example, a company may require specific technical knowledge that is prevalent in one country, and through globalization, it can hire skilled professionals from that area, benefiting from their expertise and potentially reducing costs associated with training or recruitment in their local markets. This aspect of globalization drives innovation and enhances competitive advantages for businesses operating in the BPS sector, leading to better service delivery and customer satisfaction.

In contrast, increased risks associated with outsourcing, reduction of global competition, and decreased availability of resources represent challenges or consequences that businesses may face but do not encapsulate the primary effect of globalization on the landscape of Business Process Services.