Business Process Outsourcing (BPO) is often cheaper than inbound services when we consider the below factors:

Labour Cost: In BPO companies wages paid to BPO employees are often much lower than those paid to inbound service employees.

Infrastructure Cost: The cost of office space, electricity, and other overhead costs may be reduced where the BPO company is located, allowing them to offer their services at a lower price.

Economies of Scale: This means that We can spread the fixed costs of their operations over a larger number of clients, making their services more affordable.

Specialization: BPO companies often specialize in specific services, such as data entry, customer service, or back-office support that allow them to develop expertise and efficiencies in these areas, which can reduce costs and increase quality.

Time Zone Differences: BPO companies located in different time zones can offer 24/7 service, which can be more cost-effective than hiring and staffing a team in-house to provide the same level of service.

Flexibility: we can quickly scale up or down their services based on the client’s needs, which can be more cost-effective than maintaining a large in-house team that may not be fully utilized.

Risk Mitigation: BPO companies can help to mitigate risk for their clients by taking on certain responsibilities and liabilities. For example, a BPO company may take responsibility for data security or compliance with regulatory requirements, which can help to reduce the client’s overall risk exposure.

Access to Global Talent: This allows clients to tap into a wider range of skills and expertise than would be available locally, which can be cost-effective in the long run.

In contrast, inbound services often require a more specialized and experienced workforce, which can be more expensive to recruit and train. Additionally, inbound services often require a higher level of customization and personalization, which can be more time-consuming and labor-intensive than the standardized processes used in BPO services.

Overall, while inbound services can offer a higher level of personalization and expertise, they can also be more expensive due to the specialized nature of the work. 

In summary, BPO services can be cheaper than inbound services due to a range of factors, including lower labor and infrastructure costs, economies of scale, specialization, use of technology, time zone differences, reduced overhead, flexibility, risk mitigation, and access to global talent. However, the choice between BPO and inbound services ultimately depends on the specific needs and priorities of each client, as well as their budget and resources.