BPO can be defined as the delegation of one or more IT-intensive business process to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria.
India is a country rich in skilled human resources. The availability of cost effective labour, that is well educated and English speaking and well-developed communication infrastructure as well as an appropriate time difference with other countries all help in making India a favorite destination for the BPO industry.
The driving force behind the outsourcing of business processes is cost effectiveness. The availability of abundant, technically skilled English speaking labour in India is what attracts most companies to outsource their business processes. In the past decade telecom and other infrastructure has improved significantly and meet global standards. The quality of services provided by Indian BPOs are unmatched. Another important advantage is the ability of BPOs to provide 24/7 services.
The driving force behind the outsourcing of business processes is cost effectiveness. The availability of abundant, technically skilled English speaking labour in India is what attracts most companies to outsource their business processes. In the past decade telecom and other infrastructure has improved significantly and meet global standards. The quality of services provided by Indian BPOs are unmatched. Another important advantage is the ability of BPOs to provide 24/7 services.
Some of the motivating factors for outsourcing processes are:
Cost effectiveness
The cost of handling a particular process by a BPO outfit is much lower than the cost of handling the same process by the client. This is primarily due to lower employee costs and other overheads expenses. This directly boosts the bottom line of the client.
Cost effectiveness
The cost of handling a particular process by a BPO outfit is much lower than the cost of handling the same process by the client. This is primarily due to lower employee costs and other overheads expenses. This directly boosts the bottom line of the client. Focus on core competence
When the concept of BPO first emerged several years ago, the term meant contracting of one company by another to execute a business process end-to-end. As the world has now become a global village and competition increases, it has become essential for the companies to focus on core competencies. This can easily be achieved by outsourcing non-core processes to the BPO outfit. Hence BPO offers enormous opportunities for change in the current business scenario.
BPO is based on the business philosophy that any business activity that isn’t of core competence should be squeezed out. In real terms, it represents a means to achieve a competitive advantage by enabling businesses to focus on its core competencies. Successful companies are incorporating outsourcing as a key strategy for their growth and differentiation and have accepted outsourcing as a critical factor for business survival. Outsourcing is needed in both, bad times to cut operating costs and good times to focus on company’s growth. Outsourcing business processes reduces costs and improves efficiency
Business risk mitigation
BPO services help mitigate risks and secure benefits through a structured, proven approach. It also ensures consistent and reliable delivery from offshore and acts as an effective Risk Mitigation function. There are huge risks associated with the several investments made by an organization but companies that outsource become more dynamic and are better equipped to adapt to the changing business environment.
Superior competency
The BPO outfit is committed in providing proven and effective solutions that would enable the customers to efficiently navigate dynamic business environments.
The outsourcing company can also enjoy the benefits of superior competency of the service provider. An activity that is non-core for the client is a core activity for the service provider. Hence the service provider would be able to deliver superior competency.
Expand volumes, markets and product offerings
Business Process Outsourcing helps in building a dedicated team to strengthen a company’s overall competitiveness that would enable them to concentrate on their core business. This would indirectly help the client to achieve greater volumes, expand markets and product offerings.
