The acronym “BPO” stands for Business process outsourcing which is as old as business itself. It is a contracting of a business task to a third party service provider, to handle business activities for you. The focus of BPO is reducing transaction costs, optimizing process efficiency and providing size and scale to handle a large volume of transaction processing engagements. Earlier BPO use to outsource processes such as payroll but now it encompasses functions that are considered “non-core” to the primary business strategy. It is also referred to as ITES — information technology-enabled services. It is a technology-driven, high-quality based service.
Today, business process outsourcing India is the most favored destination in the world. This is because India is a home to inherent strengths, large and skilled human resources, producing the largest number of graduates in the world. Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world.
The driving force behind the outsourcing of business processes is cost effectiveness. Since wages in India is cheap in Dollar terms, which mean that for the same amount of money that the firms are paying their employees in the west, they can get a highly leveraged amount of work when they outsource to India.
India has a distinct advantage of being in a different time zone. This time zones of the West and Asia complement each other to ensure that business process outsourcing services are provided in 24/7 cycle. As west and Asia are separated by half day time zone difference i.e. whenever it is night in one, it is day in other hence the work can be done round the clock. Therefore, it has flexible working hours.
Another major incentive for outsourcing to India is the favorable income tax policy followed by the government.
Business process outsourcing companies in India are proven sources helping businesses survive and thrive in the boundary-less global economy. Business process outsourcing solutions given by them provide efficient services, access to resources that may be beyond the organization’s ability and increased cash flow. Once a process is successfully outsourced, executives can get more control over their most valuable resource- TIME. Business process outsourcing companies have evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. Forward-looking global companies are using business process outsourcing India as a business strategy to effectively meet critical business challenges.
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