Business process Outsourcing is a Fragment of Outsourcing that involves the Bond of the operations and responsibilities of a specific Functionalities to a Service Provider. Initially, BPO was related to Manufacturing Bureau which outsources large Segments of its Supply Chain.
Typically Business Process Outsourcing is categorized into Back Office Outsourcing and Front Office Outsourcing. Outsourcing Back Office Services comprises of Internal Functionalities such as HR, Finance and Accounting. Front Office Outsourcing includes Customer related Contact Centre Services.
BPO Services which are undertaken outside the Country is called Offshore Outsourcing. BPO Services that are Undertaken by the Neighboring Country is called Near shore Outsourcing.
Business Processes are IT based and are referred to as ITES-BPO.ITES stands for Information Technology Enabled Service. BPO is also sub-divided into Knowledge Process Outsourcing and Legal Process Outsourcing.
In India, BPO is the fast growing division of the ITES field.
Factors like Business Risk Mitigation, Utilization Improvement, Cost Advantage and Superior Competency leads to the Massive growth of the Indian BPO industry.
In India, BPO Companies came into existence in 90’s has now grown by Leaps.
India is the world’s beneficial market for BPO companies, among other competitors like Philippines. The BPO in India is believed for Cheap costs and India has highly skilled, English-speaking experts.
NASSCOM’s Research has revealed that Standard emplacement of BPO Companies, 24*7 Support, and Tax structure of India have all made our Nation, Very Popular among Other Nations.
Facts about BPO Industry
- The BPO field in India is reckoning to have achieved a 54% of the Growth in Revenue.
- The Desire for Indian BPO services has been increasing at an annual growth rate of 50%.
- The BPO industry in India has offered jobs for more than 7 Lakh Indians.
- 70% of India’s BPO’s revenue is from Call centers and 20% is from Data Entry process and the remaining 10% is from IT Related work.
- BPO’s in India handle 56% of the World’s Business Process Outsourcing.
Advantages of BPO:
The main Reason for the Companies to outsource their business processes is simple.BPO enables business owners to reduce the Work Burden and concentrate on other vital aspects of their Company.
Some of the Advantages of BPO include:
- Reduced Cost
- Experienced Professionals and Updated Resources
- Ability to Focus on Core Business
- Excellent Source of Customer Feedback
- Excellent Employment Opportunity
Read more: Payroll Outsourcing