Final answer:
The $20 million spent by ABD Tech on global installation of Business Intelligence Software is a capital expenditure aimed at enhancing business analysis and strategic decision-making. It reflects the broader trend of investment in information technology and BPO services, which has increased significantly since 2005, particularly in India and the Philippines.
Step-by-step explanation:
In the scenario where ABD Tech has invested $20 million to install Business Intelligence Software (BIS) across all of its branches globally, the cost incurred by ABD Tech is a capital expenditure. This investment in BIS is aimed at harnessing data for better business analysis and decision-making. The $20 million spent is significant as it shows ABD Tech's initiative for digital transformation and strategic decision management.
Such investments have been seen across various countries, with information technology and BPO being a focus. Since 2005, the BPO market has seen dramatic increases, doubling or even tripling in some countries by 2009. In particular, India and the Philippines have become significant destinations for BPO services, enhancing their infrastructure to capture more of the market. This shift in business processes from one country to another allows corporations to remain competitive globally by leveraging the cost advantages of operating in low-cost countries.