BPO sector in Bosnia and Herzegovina is emerging and has the potential to positively affect the unemployment problem in the country. In the last two years, the foreign investments and outsourcing to Bosnia and Herzegovina have significantly increased, while investors from UK, Germany, Czech Republic and Austria have recognised the high potential of the country that can accommodate their business needs. Relatively low average salaries in comparison to the Western countries incentivised local and foreign investors and very recently international players such as Teleperformance, Storsen, DDC and CCC have invested in Bosnia and Herzegovina by registering their companies. Still, the leaders in providing outsourcing services are locally-owned companies which provide outsourcing services mainly to the EU market. The major driver for investments is recognised in competitive workforce compensation as well as in one of the lowest corporate income tax and personal income tax in Europe, both being only 10%. Majority of outsourcing companies are still located at urban centres such as Sarajevo and Banja Luka due to the infrastructure and availability of workforce.