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BPO is abbreviated as Business Process Outsourcing.  When a company wants its non-core work to be done by an expert at cheaper costs then they outsource their work to other country, which is called Business Process Outsourcing.  The outsourcing is generally made between two countries.

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Indians are well educated (by Asian standards) and that there is a humungous body of resources who have graduated in commerce and technology has meant that the BPO story took off in right earnest in India. Added to this is the fact that the demographics favor India since a majority of its population is young and under 30. This is the so-called demographic dividend wherein a country that is youthful reaps the fruits of having a labor force which can be tapped into. All these reasons have conspired to bring about a revolution in the way the Indian BPO sector has performed. Try to avoid the BPO sector while considering your career. Stagnation along with low salary and tedious work schedule are rampant in the sector. However, things can get better once you rise through the echelons. The bottom line being, join the BPO sector when there is no other alternative.

http://www.rediff.com/getahead/2008/oct/07career.htm