BPO (Business Process Outsourcing)

BPO (Business Process Outsourcing)

Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. Although BPO originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services, as well.

Many businesses, from small startups to large companies, opt to outsource processes, as new and innovative services are increasingly available in today’s ever-changing, highly competitive business climate.

Broadly speaking, companies adopt BPO practices in the two main areas of back office and front office operations. Back office BPO refers to a company contracting its core business operations such as accounting, payment processing, IT services, human resources, regulatory compliance, and quality assurance to outside professionals who ensure the business runs smoothly.

The breadth of a business’ BPO options depends on whether it contracts its operations within or outside the borders of its home country. BPO is deemed “offshore outsourcing” if the contract is sent to another country where there is political stability, lower labor costs, and/or tax savings. A U.S. company using an offshore BPO vendor in India is one such example of offshore outsourcing.

Companies are often drawn to BPO because it affords them greater operational flexibility. By outsourcing non-core and administrative functions, companies can reallocate time and resources to core competencies like customer relations and product leadership, which ultimately results in advantages over competing businesses in its industry.

The BPO industry in India

In India, Business Process Outsourcing (BPO) is the fastest growing segment of the ITES (Information Technology Enabled Services) industry. Factors inclusive of financial system of scale, commercial enterprise threat mitigation, value gain, utilization improvement and superior competency have all result in the increase of the Indian BPO industry. Business technique outsourcing in India, which started across the mid-90s, has now grown via leaps and limits.

The BPO increase in India is credited to reasonably-priced exertions expenses and India’s big talent pool of skilled, English-speakme specialists. Research by the National Association of Software Services and Companies (NASSCOM) has found out that best orientation amongst main BPO organizations, 24/7 services, India’s precise geographic region and the investor pleasant tax structure in India have all made the BPO enterprise in India very popular. India is now the arena’s favored marketplace for BPO businesses, among other competitors, together with, Australia, China, Philippines and Ireland.

Services provided through Indian BPO companies

Indian BPO corporations provide numerous services, including, customer service, technical support, telemarketing, coverage processing, records processing, forms processing, bookkeeping and internet / on-line / web research.

  • Customer assist services: 24/7 inbound / outbound name middle services that deal with purchaser queries and worries thru phone, e mail and stay chat.
  • Technical help services: Installation, product assist, jogging guide, troubleshooting, usage guide and hassle resolution for laptop software, hardware, peripherals and internet infrastructure.
  • Telemarketing services: Interacting with potential customers and growing hobby for the patron’s offerings/ merchandise. Up-promoting, selling and go selling to present customers and completing on-line income techniques.
  • IT help table services: Level 1 and 2 multi-channel help, machine problem resolutions, technical problem decision, workplace productiveness equipment aid, answering product utilization queries and acting faraway diagnostics.
  • Insurance processing: New business acquisition and promoting, claims processing, policy protection and policy control.
  • Data entry and facts processing: Data access from paper, books, pics, e-books, telephone book, web websites, business playing cards, printed documents, software programs, receipts, bills, catalogs and mailing lists.
  • Data conversion offerings: Data conversion for databases, phrase processors, spreadsheets and software packages. Data conversion of uncooked statistics into PDF, HTML, Word or Acrobat formats.
  • Bookkeeping and accounting offerings: Maintenance of the client’s preferred ledger, money owed receivables, accounts payables, economic statements, bank reconciliations and property / device ledgers.

BPO Role in India’s Economic Growth

BPO Role in India’s Economic Growth has been tremendous, especially in the last few years, when the demand for outsourcing work to India has been significant among western companies.

The role played by BPOs in boosting India’s economy shows that the IT and ITeS sector have been contributing largely to the economic growth of India. The growth in the contribution of BPOs to Gross Domestic Product has shown a steady rise from 1.2% to 5.4%. It is hence evident that the BPO industry is making an impact on the Indian economy.

BPOs are aiming at contributing towards bringing in more earnings to the country and IP creation. Currently, BPOs in India are focused on the domestic segments and offshoring. The benefit to the local economy is subject to judicious exploitation of resources existing in these areas.


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