SLIDE 1

Good Afternoon, everyone.

Today, we are excited to introduce to you the fascinating world of Business Process Outsourcing or
BPO.
We'll explore how this industry is playing a pivotal role in the transformations that many multinational
organizations are undergoing.
So, Let's now begin our discussion to Auditing of Business Process Outsourcing.

SLIDE 2 Multinational Organizations' Transformations

- Finance, tax, and IT transformation projects
- Technology-driven automation
- Centralizing functions in shared centers
Visuals: Graphs or icons representing transformations
SCRIPT
Now it takes us straight into the dynamic transformations happening in multinational organizations.
Today, companies are not just adapting but embracing change.
Finance, tax, and IT projects are at the forefront, with technology serving as a key driver for automation.
And Shared centers are centralizing common functions, fostering efficiency, and reducing costs.

SLIDE 3 Four Key Elements for Success

- People - Process – Data - Technology
- Visuals: Icons or images representing each element
SCRIPT
As we navigate these transformations, it's crucial to understand the four key elements that must work in
harmony for success. On how they intertwine to enable the success of these transformative projects
People, process, data, and technology —
these elements form the backbone of any successful endeavor.

SLIDE 4 Business Process Outsourcing (BPO) as a Global Trend

- BPO's significance regardless of organization size
- Forbes Insights survey (2010): 60% of CEOs viewed BPO as crucial
- Global BPO industry projected worth of $250 billion by 2020
- Philippines: 10-15% share in the global BPO market
- Visuals: Infographics or charts representing survey results and market share
 SCRIPT
Let's turn our attention to the global landscape of BPO.
It's not just a trend; it's a fundamental shift in how businesses operate.
Back in 2010, a Forbes Insights survey revealed that 60% of CEOs at global enterprises believed BPO
played a crucial role in supporting business models.
Fast forward to today, the global BPO industry is projected to be worth a staggering $250 billion by
2020, with the Philippines claiming a significant 10-15% share in the market.

SLIDE 5 Philippines: A Leading BPO Destination

- Compound annual growth rate of 10% over the past decade
- Consistently ranked among the top five outsourcing destinations
- Visuals: Map of the Philippines, growth rate chart, accolades
SCRIPT
Our journey takes us to the Philippines, a true powerhouse in the BPO landscape.
Over the past decade, the local BPO sector has experienced a remarkable compound annual growth
rate of 10%, solidifying its position among the top five outsourcing destinations globally.
Now, let's explore why the Philippines continues to be a preferred hub for BPO operations.

SLIDE 6 Introduction to Business Process Outsourcing

- Definition of BPO
- Contracting work processes to external service providers
- Inclusive services: payroll, accounting, telemarketing, data recording, social media marketing, customer
support, etc.
- *Visual:* A visual diagram illustrating the diverse services within BPO.
SCRIPT
Let's start by defining Business Process Outsourcing.
BPO is the practice of contracting specific work processes to external service providers.
These services cover a wide range, from payroll and accounting to telemarketing, data recording, social
media marketing, and customer support.

SLIDE 7 Overview of BPO in Business

- Importance for businesses of all sizes
- From startups to Fortune 500 companies
- Continuous demand due to innovation and competition
- Alternative to labor migration
- *Visual:* Graphics showing a spectrum from startups to Fortune 500 companies and a globe representing
global impact.
SCRIPT
Why is BPO so important?
Whether you're a fledgling startup or a massive Fortune 500 company, businesses of all sizes find
value in outsourcing processes.
The demand for BPO continues to grow as businesses innovate to stay ahead of the competition.
It's not just a business strategy; it's an alternative to labor migration, allowing skills to contribute globally
while the workforce remains in their home country.

SLIDE 8 Types of BDO Services

- Back-office vs. Front-office services
- Examples of back-office services: internal processes like billing, purchasing
- Examples of front-office services: customer-facing services like marketing, tech support
- Integration of both services for cohesive operations
- *Visual:* A split screen or Venn diagram illustrating the distinction and integration of back-office and front-
office services.
SCRIPT
Now, let's delve into the different types of BPO services.
We have back-office services, handling internal processes like billing and purchasing, and front-office
services, which deal with customer-facing aspects like marketing and tech support.
What's interesting is how these services can be seamlessly integrated, working together for a more
efficient operation.

SLIDE 9 Evolution of BPO and Global Impact

- Multinational organizations undergo transformations for efficiency and cost reduction.
- Technology-driven processes and shared centers play a key role.
- BPO trend remains strong globally, with a projected $250 billion industry by 2020.
- The Philippines holds a significant position, growing at a compound annual rate of 10% over the past
decade.
SCRIPT
As organizations globally undergo transformations to enhance efficiency and reduce costs, the use of
technology and shared centers becomes pivotal.
Our focus today is on the BPO industry, a trend that remains robust, with a projected worth of $250
billion by 2020.
Notably, the Philippines has been a significant player, experiencing a growth rate of 10% over the past
decade.
SLIDE 10 Optimizing Processes through BPO Categories
- BPO industry divided into three categories based on vendor location.
- Achieve total process optimization by combining these categories.
- Offshore vendors: Outside the company's own country (e.g., U.S. company using a BPO vendor in the
Philippines).
- Nearshore vendors: In neighboring countries (e.g., U.S. company using a BPO in Mexico).
- Onshore vendors: Operate within the same country, in a different city or state (e.g., a company in Seattle,
Washington, using an onshore vendor in Huntsville, Alabama).
SCRIPT
Now, let's delve into the heart of BPO categorization, a crucial aspect for achieving total process
optimization. There are three categories based on vendor location: Offshore vendors, Nearshore vendors, and
Onshore vendors. Understanding and strategically combining these categories can significantly impact the
effectiveness of outsourcing. For instance, a U.S. company might utilize an offshore BPO vendor in the
Philippines, while a nearshore vendor could be situated in a neighboring country like Mexico. Additionally,
onshore vendors operate within the same country, providing flexibility in location, such as a company in
Seattle, Washington, using an onshore vendor in Huntsville, Alabama.
For example, a U.S. company might utilize an offshore BPO vendor in the Philippines, while a
nearshore vendor could be situated in a neighboring country like Mexico. Let's explore an additional scenario -
an onshore vendor. In this case, a company in Seattle, Washington, could collaborate with an onshore BPO
vendor located in Austin, Texas. This demonstrates the flexibility and diverse options available within onshore
outsourcing, allowing companies to choose vendors within the same country but in different cities or states
based on their specific needs and preferences."
SLIDE 10 Categorization of BPO Services
- Introduce the six main categories of BPO services: Customer Interaction, Back-Office Transactions, IT and
Software Operations, Finance and Accounting, Human Resource, and Knowledge Services
SCRIPT
As we move forward, let's dive into the diverse services offered by BPO companies. Each BPO firm specializes
in specific services, which can be broadly categorized into six main groups. These categories are pivotal in
understanding the breadth and depth of BPO operations. Now, let's explore these categories in more detail.
SLIDE 11 Detailed Information on Each BPO Service Category
SCRIPT
We'll break down each category of BPO services. This detailed exploration will help us understand the
intricacies of the industry. Let's start with the first category."
SLIDE 11 Conclusion: The Auditing Landscape in BPO
- Summarize the key points discussed
SCRIPT

In conclusion, we've uncovered the dynamic landscape of the Business Process Outsourcing Industry. From
customer interaction services to knowledge services, each facet plays a crucial role in shaping this industry. As
accounting students and future accountants, understanding these intricacies is not just informative but
foundational for our future roles. As we embark on our journey in accountancy, the knowledge gained here will
undoubtedly be valuable in ensuring compliance, efficiency, and success in the realm of Business Process
Outsourcing. Thank you that’s all for my part