What is the Business Process Outsourcing industry?
The Business Process Outsourcing industry exhibits low capital intensity. For every dollar invested in capital, an estimated $21.25 is paid as wages. This low level of capital intensity is reflective of the highly labour intensive nature of the industry, with the majority of industry operations requiring significant labour input. The service-based nature and high skill requirements of the industry keep wage costs high. Automation and economies of scale have become increasingly important for industry operators over the past five years, with firms purchasing sophisticated computer systems and IT software to gain a competitive edge and reduce wage costs. As a result, capital intensity is expected to have increased slightly over the past five years... purchase to read more