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Collaboration tools adopted by over 50,000 companies globally. Box simplifies online file storage, replaces FTP and connects teams in online workspaces."

Additional Focus:

BPO outsourcing enables an organization to efficiently manage business operations. In such a process, an outsourcing partner is hired to carry forward diverse back-end services. Since the back office operations are time consuming and difficult, it allows business organizations to hand over difficult tasks to someone else. This leaves behind the focus on other major operations. This is something that leads to considerable amount of saving in terms of money, effort and time.

Skilled Manpower

Usually the manpower which is obtained from outsourcing is hugely beneficial. The professional and highly skilled employees are well-trained and they are found to be experts in their own fields.

Maintaining Quality Adherence

At each and every stage of business process outsourcing, the outsourcing partner has to maintain superior quality. The outsource customer service representatives has to go through a routine quality check. This helps them maintain high levels of quality and accuracy.

Use of Better Technology

Selecting the right BPO outsourcing partner offers you the technological edge that you want. Companies are given the added benefit of the best technology. This is the reason why most companies make India, Philippines or China as their outsourcing choice. The major technological developments taking place in these countries have helped companies to add to a range of helpful services that they are able to provide.

Data Security

Security of information or data is an essential requirement among every company. It is crucial that utmost security measures should be maintained and adopted. This is one of the important aspects which are strictly adhered to by the outsourcing partner. On account of huge volumes of essential data which are stored and handled, it will be important to watch out for the given security measures. The adopted security measures at the overseas customer service centers follow international standards to ensure safety and continuity of your vital data.

Meeting Competition

Your outsourcing partner enables your organization to stay ahead in the competition. It ensures that they are well-equipped with sufficient cost reduction, latest technological services and experienced workforce.

BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact center services.

BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing.

Given the proximity of BPO to the information technology industry, it is also categorized as an information technology enabled service or ITES. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry.

Industry size
India has revenues of 10.9 billion USD from offshore BPO and 30 billion USD from IT and total BPO (expected in FY 2008). India thus has some 5-6% share of the total BPO Industry, but a commanding 63% share of the offshore component. This 63% is a drop from the 70% offshore share that India enjoyed last year, despite the industry growing 38% in India last year, other locations like Eastern Europe, Philippines, Morocco, Kenya, Egypt and South Africa have emerged to take a share of the market[citation needed]. China is also trying to grow from a very small base in this industry. However, while the BPO industry is expected to continue to grow in India, its market share of the offshore piece is expected to decline. Important centers in India are Bangalore, Hyderabad, Chennai, Kolkata, Mumbai, Pune and New Delhi.

The top five Indian BPO exporters for 2006-2007 according to NASSCOM are Genpact, WNS Global Services, Transworks Information Services, IBM Daksh, and TCS BPO.

According to McKinsey, the global "addressable" BPO market is worth $122 – $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 20-25 is finance, accounting and HR. Moreover, they estimate that 8% of that capacity was utilized as of 2006

BPO Benefits and Limitations
An advantage of BPO is the way in which it helps to increase a company’s flexibility. However, several sources[which?] have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways.

Most services provided by BPO vendors are offered on a fee-for-service basis[citation needed]. This can help a company becoming more flexible by transforming fixed into variable costs. A variable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more flexible. Outsourcing may provide a firm with increased flexibility in its resource management and may reduce response times to major environmental changes[citation needed].

Another way in which BPO contributes to a company’s flexibility is that a company is able to focus on its core competencies, without being burdened by the demands of bureaucratic restraints. Key employees are herewith released from performing non-core or administrative processes and can invest more time and energy in building the firm’s core businesses. The key lies in knowing which of the main value drivers to focus on – customer intimacy, product leadership, or operational excellence. Focusing more on one of these drivers may help a company create a competitive edge.

A third way in which BPO increases organizational flexibility is by increasing the speed of business processes. Using techniques such as linear programming can reduce cycle time and inventory levels, which can increase efficiency and cut costs[citation needed]. Supply chain management with the effective use of supply chain partners and business process outsourcing increases the speed of several business processes, such as the throughput in the case of a manufacturing company.

Finally, flexibility is seen[who?]as a stage in the organizational life cycle. BPO helped to transform Nortel from a bureaucratic organization into a very agile competitor[citation needed]. A company can maintain growth goals while avoiding standard business bottlenecks. BPO therefore allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. It avoids a premature internal transition from its informal entrepreneurial phase to a more bureaucratic mode of operation.

A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to amortize, may become outdated or turn out to be a poor match for the company over time.

Although the above-mentioned arguments favor the view that BPO increases the flexibility of organizations, management needs to be careful with the implementation of it as there are a issues, which work against these advantages. Among problems, which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility. Consequently, these challenges need to be considered before a company decides to engage in business process outsourcing

A further issue is that in many cases there is little that differentiates the BPO providers other than size. They often provide similar services, have similar geographic footprints, leverage similar technology stacks, and have similar Quality Improvement approaches.

Source: http://en.wikipedia.org/wiki/Business_process_outsourcing

In India, the trend of business process outsourcing services started off only a decade ago. However, it is India, which is currently considered to be the best place to meet up with the outsourcing service requirements and to attain the best service globally.

Today, the BPO outsourcing industry in India has been ranked as one of the most profitable industrial sectors in the nation. The industry stands responsible for accounting more than one third of the total productivity that has led the country to experience an increased rate of growth every year. There are several factors that have contributed to the success of the BPO services in India. Some of these factors are given in the following lines:

Advanced infrastructure:

India is considered to be one of the fastest growing nations in the world. All the four metropolitan cities- Delhi, Chennai, Kolkata and Mumbai have turned out to be the major hub for almost each MNC from all over the world. These companies not only outsource the service requirements to different local companies but they also hire employees in order to handle its business operations residing in any other nations and also helping the partners as well. This is another reason behind the growth of the BPO services in India.

Lower wage:

India being one developing nation includes abundance of well-educated and well-trained people who can be easily employed for a relatively lower wage. As the labor cost is considered to be high in the developed nations, most companies belonging to the developed countries are found to be widely outsourcing their needs to the Indian BPO companies. Moreover, most BPO/call center firms are found to include youths, making them the primary workforce to reap the maximum benefits.

Adaptability to attain working style and foreign culture:

The Indian people are found to be pretty self-effacing when it is about getting adapted to the working style and foreign culture. Therefore, the foreign consumers usually find familiarity in India that makes them comfortable to carry out their outsourcing needs at ease. This serves to be an important reason that has made the BPO services in India a great pleasure for the service seekers from all over the world.

Massive youth power:

It may be surprising but true that almost 50 percent of the Indian population is young and almost all of them are educated individuals. As almost all of them are found to be professional graduates holding quality English speaking ability, they are mostly employed by the multinational companies and the other business outsourcing vendors situated in India. This proves to be the reason which is offering an exceptional hike to the BPO services.

The call center services are constantly branching out to meet the requirements of all kinds of industries, creativity being one of them. Creative industries include enterprises related to advertising, multimedia, animation and so on. Computer and internet have turned out to be the greatest source of modern times in terms of publicity, knowledge or any other useful information that we require in different spheres of our life. For instance, the computer acts as a platform for educating us through online tutors.

The computer games are a must have for today’s kids, increasing the number of game manufacturers. Not all of these manufacturers possess the expertise of developing exclusive gaming contents and that is why they outsource their work to the business process outsourcing companies. Even the production houses of commercial films are outsourcing some of their operations to the BPO firms, such as animation services. The film producers can deal with the financial part but they certainly do not possess specialized personnel for creating animated pictures. As that might turn out to be very expensive for them since they produce animated films once in a blue moon. The outsourcing firms provide them with the kind of service they want and that too, at a relatively lower cost.

The modern generation is tending to lose interest in reading books and is interested in reading the dailies or e-books that are published online. As a result, the publication houses are getting inclined towards online publishing of books, magazines and journals. E-book publishing requires special technique, which they are not familiar with and any error on their part can take their businesses to a low. Business process outsourcing is being considered as an essential alternative by these organizations since they can rely on it completely. The outsourcing companies have a good will of having helped their clients with quality and timely delivery of services.

The gaming industries in the western countries outsource their projects on a constant basis to the BPO destinations of the developing countries. Not only these BPO firms possess the right infrastructure, but they also manufacture the gaming contents at cheaper rates. The offshore companies thus, prefer to outsource their business operations to the firms based in the third world countries. The demand for BPO services is just spreading over a large number of domains, many of which are related with creativity. The production cost in the field of animation is quite huge in the West, thereby causing those production houses to outsource their services to the BPO firms based in the East.

Business process outsourcing is being utilized by most manufacturers in the field of advertising, e-publishing, gaming and animation. Delivery of high-end manufacturing services at highly affordable costs is what these businesses are looking for.