Final answer:
Back-office services are optimally located in countries with prominent English usage, low employment costs, and ample skilled labor. India and the Philippines are prime examples of destinations for Business Process Outsourcing (BPO) due to these factors.
Step-by-step explanation:
Back-office services, such as Internet services, call-in centers, and processing centers, should be strategically located to maximize efficiency and minimize costs. These services can be conducted over the Internet or by telephone, hence they can be outsourced globally wherever high-speed communication links are available.
Business Process Outsourcing (BPO) is particularly attractive in countries where English is prominently spoken, employment costs are low, and there is a skilled or educated labor base. India has been a major destination for BPO activity from the United States due to its large number of English-fluent educated young people and an adequate labor base for computer-related and service-related industries.
The Philippines has also become a notable hub for back-office services, attracting corporate giants like America Online and Citibank, due to significant economic savings and a favorable environment for outsourcing. These services are expanding to various countries, increasing the global outsourcing market and contributing to the dynamic nature of the global economy.