BPO industry in India is growing at exponential rate and services offered by best companies are holding expertise in various domains. Here is a brief discussion.
Business process outsourcing domain in India has come a long way shedding its earlier image of ‘sweat-shop’ to take the position of a strategic differentiator within the global marketplace. Whole manner of doing business has been modified after the advent of business process outsourcing. Before going into further details let us give a look at brief introduction of BPO.
What is BPO?
Single line definition of BPO is contracting business tasks to third-party service providers. Now question arises what are the benefits of hiring third-party service providers when a big corporate firm has all comprehensive services offered by its in-house departments? Certainly the benefits are many.
First and foremost is optimization of process efficiency. Offering expert services is the foundation of success for BPOs. Next in line is the factor of reduced transaction costs. If you combine both the factors, worth of BPO services increase. Third most significant benefit of BPO services is that they provide large scale specialised infrastructure for handling huge volume of engagements in relation with transaction processing.
We can separate the BPO segment in 2 parts one in relation with back-office outsourcing and another with front-office outsourcing. Internal business operations linked with billing and purchasing are completed by back-office process outsourcing division whereas that in relation with customer and marketing services along with technical support are conducted by front-office division.
• Engineering services
• Call-centre services
• Finance & accounting
• Data-entry operations
• Web-analytics services
• Photo-editing services
• Healthcare services
• Software design & development
• Services regarding research & analysis
So what’s new in BPO?
As much old as the concept of business itself, the present stature of BPO is the result of laissez faire or free-trade that has transformed it as the key driver of enterprise competitiveness. The foundation of BPO is based on following points:
• Quality process delivery
• Integration of diverse global markets
• Seamless delivery of projects across the globe
Where does BPO stand in India?
More people are proficient in English conversation in India and that is why the country is preferred destination for global outsourcing markets. Even during economic recession period, Indian BPO industry successfully withstood its adverse impacts. There are selective services outsourced to India which are as follows:
• Technical support
• Services in relation with inbound call centres
• Document processing
• Finance & accounting
• Supply chain management
• Intellectual property rights
• Legal processes outsourcing
• Medical transcription
• Regulatory compliance documentation
• Sales & marketing
• Payroll processing
• Management of infrastructure and facilities
• Human resource management
Horizontals and verticals of BPO
BPO Horizontals: Services included within this sector are function specific and could be flexibly spread through various industry domains. Services included within horizontal domain are data-processing, tax solutions and payroll processing.
BPO Verticals: Functions focusing upon specific industry domains fall under the category of BPO verticals. This includes retailing, healthcare, manufacturing, finance and accounting.
Third-party & Captive players
Indian CODCs or captive offshore delivery centres have been developed by reputed multi-national companies such as British Airways, GE Capital, American Express and Dell among others for the maintenance of ownership controls over complex or core processes and proprietary knowledge.
Third-party service providers may give the CODCs a run for its money as they offer services at lower costs and flexibility without compromising its quality.
Significance of BPO sector is outreaching every domain of industry and more it will heighten up its expertise, more will businesses prosper.