What is BPO – Business process outsourcing, or BPO, could be a business practice within which one organization hires another company to perform a process task that the hiring organization requires for its own business to control successfully.
BPO has its roots within the manufacturing industry, with manufacturers hiring other companies to handle specific processes, like the parts of their supply chains unrelated to the core competencies required to create their end products.
The most important advantages of BPO/KPO are as follows:
The Outsourcing market is growing tremendously coming few with increasing years with an increasing advantage and after read this blog you now importance of bpo industry as discussed below:-
BPO enables to the company executive to concentrate upon core business areas. Conventionally executives spend longer in management of details and that they get little time to formulate strategies. BPO saves time and helps the executives to explore new revenue areas, accelerate other projects and specialise in their customers. This leads to improvement within the productivity. Better educated or skilled people perform the task efficiently and thus improve productivity.
BPO enables optimum utilisation of resources of scarce resources. Outsourcing helps to capture new efficiencies and reallocate the resources. This increases the efficiency and productivity. Availability of skilled employees and adoption of sophisticated technologies results in utilisation of resources and productivity.
Cost savings will be significant to any business. BPO not only helps in reducing cost but also increase productivity and raise revenue significantly. Cost reduction is feasible through process improvements, reengineering, and use of technologies that reduce and produce administrative and other costs in check . Outsourcing helps the corporate maintain lower rates with better service solutions, thereby giving them a much better market position and even a competitive advantage.
Improved HR is another great advantage of outsourcing business processes. Cost effective manpower is one more important factor of importance in BPO. Companies today, require productive and efficient human resource which will generate economies of scale. due to outsourcing business can save Human resource cost, depending on their priorities. Outsourcing gives a corporation the power to urge access to skilled and trained man power at extremely low rates.
Efficient business strategy is important to require the business to the highest . Outsourcing enables the top management level at hand over critical but non-core activities of the business to the third party. This facilitates top management level to focus on the core activities.
It is another great advantage of outsourcing the business processes. Many BPOs provide the management with flexible services to fulfill the customers’ changing requirements, and to support company acquisitions, consolidations, and joint ventures.
Technology is that the leading area of outsourcing. It makes much of the work of modern organisation easy. Investing in new technology is extremely costly and sometimes risky. because the technology market develops rapidly, it’s difficult to stay pace with the newest innovations and solutions. Thus outsourcing to companies that have the resources, expertise and desire to continuously update their technological solutions, offers a real advantage of outsourcing.
In India, Business Process Outsourcing (BPO) is that the fastest growing segment of the ITES (Information Technology Enabled Services) industry. Factors like economy of scale, business risk mitigation, cost advantage, utilization improvement and superior competency have all result in the growth of the Indian BPO industry. Business process outsourcing in India, which started round the mid-90s, has now grown by leaps and bounds.
India is now the world’s favored marketplace for BPO companies, among other competitors, such as, Australia, China, Philippines and Ireland. The BPO boom in India is credited to cheap labor costs and India’s huge talent pool of skilled, English-speaking professionals. Research by the National Association of Software Services and corporations (NASSCOM) has revealed that quality orientation among leading BPO companies, 24/7 services, India’s unique geographic location and the investor friendly tax structure in India have all made the BPO industry in India extremely popular.
Indian BPO companies offer varied services, such as, customer support, technical support, telemarketing, insurance processing, data processing, forms processing, bookkeeping and internet / online / web research.
Customer support services: 24/7 inbound / outbound call centre services that address customer queries and concerns through phone, email and live chat.
Technical support services: Installation, product support, running support, troubleshooting, usage support and problem resolution for computer software, hardware, peripherals and internet infrastructure.
Telemarketing services: Interacting with potential customers and creating interest for the customer’s services/ products. Up-selling, promoting and cross selling to existing customers and completing online sales processes.
IT help desk services: Level 1 and a pair of multi-channel support, system problem resolutions, technical problem resolution, office productivity tools support, answering product usage queries and performing remote diagnostics.
Insurance processing: New business acquisition and promotion, claims processing, policy maintenance and policy management.
Data entry and data processing: Data entry from paper, books, images, e-books, phone book, web sites, business cards, printed documents, software applications, receipts, bills, catalogs and mailing lists.
Data conversion services: conversion for databases, word processors, spreadsheets and software applications. conversion of information into PDF, HTML, Word or Acrobat formats.
Bookkeeping and accounting services: Maintenance of the customer’s ledger , accounts receivables, accounts payables, financial statements, bank reconciliations and assets / equipment ledgers.
Form processing services: Online form processing, payroll processing, medical billing, insurance claim forms processing and medical forms processing.
Online research: Internet search, marketing research , surveys, analysis, web research and mailing list research.
Interesting facts about the Indian BPO industry
The BPO sector in India is estimated to possess reached a 54 per cent growth in revenue.
The demand for Indian BPO services has been growing at an annual rate of growth of 50%.
The BPO industry in India has provided jobs for over 74,400 Indians. This number is constant to grow on a yearly basis. The Indian BPO sector is soon to employ over 1.1 million Indians.
70% of India’s BPO industry’s revenue is from contact centers, 20% from data entry work and also the remaining 10% from information technology related work Indian BPOs handle 56% of the world’s business process outsourcing.
NASSCOM recently conducted a survey and evaluated the leading BPO service providers across India. The top fifteen business process outsourcing companies in India are:
Get ahead of your competitors, cut down on operational costs and get access to the services of skilled professionals, all by outsourcing non-core BPO work to India. Make a decision to outsource to India today and watch your business grow exponentially. Get in touch with us now.
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