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The BPO market has grown by huge proportions in the recent years but there has been an increased backlash against BPO in the US and UK. With the elections nearing the Bush administration which had for a long time supported BPO and other kinds of outsourcing, has had to take some (if not major) measures to keep the situation under control. The primary step in this regard taken by the US senate was to stop federal government outsourcing by the treasury and transport departments. Another bill passed in the 2003 which is soon feared to become a law could halt all federal government outsourcing to offshore destinations.Although the BPO market seems unaffected as of now by these moves by the US government. According to recent estimates by Assocham-IDC, the BPO market is expected to reach a huge $1 trillion by the year 2006 with US alone accounting for 60% of the market. An estimate that sure seems to be coming true looking at the way companies are competiting among themselves to outsource business processes.
Nearshoring
Nearshoring as opposed to offshoring involves shifting of jobs to near shore destinations.
Outsourcing offshore consulting companies are of the opinion that near-shoring will pick up pace in the near future as more and more companies begin to realize the importance of security. Apart from the security aspect nearshoring also has advantage in terms of other important factors like better cultural affinity, proximity, faster communications and similar time zone.
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