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The BPO Industry Then and Now

Posted by Rahul Bhaduri
bpo-industry-then-and-now

Business Process outsourcing (BPO) means allocation of work to a different company. Starting today, practically everyone knows what outsourcing is?

However, do they actually understand the advantages? Here I would discuss some benefits and facts.

BPO can be classified as follows: 

1) Back Office: This includes in-house business functions like the purchasing or billing. 

2) Front Office: This includes customer related services like tech support or marketing.

Business Process Outsourcing includes process management, the software, and the people to control the service. On the other hand, a typical application service provider (ASP) model consists of only the provision of admittance to the features provided or delivered with the use of software, generally via web browser to the client.

There are 3 types of BPO Companies: 

1) Off-shore Companies: Off-shore BPOs are located in foreign countries. Off-shore companies are mainly located in India, China, Pakistan, Philippines, etc.

2) On-shore Companies: Businesses which are planted in the same country are known as the On-shore companies. For example, a US based company is outsourcing its inbound process to a company in US and the services provided to them are also from the call centers in US.

3) Near Shore Companies: When the companies are structured near to the same country of origin then it is a Near Shore Company. Few near shore companies in the fields of call center are Romania, Mexico, Costa Rico, and many more.

Most of the BPO enterprises are situated abroad and provide data entry work, call center services, telemarketing, email answering services, etc.

Read Also: An Insight into the BPO Industry

Here are few benefits of Outsourcing Companies:

1) Reasonable Cost: Enterprises have been fruitful in saving up to 30% of their money by outsourcing their services to off-shore companies. Infrastructure costs are lower in these companies, and so you can save a huge sum of money. In fact, the quality obtained is also good and at a rational price.

2) 24×7 Availability: Call centers in off-shore countries function 24X7X365. This is an exceptional benefit over the on-shore call centers.

3) Service Quality: BPO Companies concentrate in providing ‘high quality service’ to the businesses they work for. Class and data safety parameters are studied and executed to keep up with the high quality standards.

Today, BPO Companies are growing very rapidly. In India, companies such as IBM, American Express, Convergys, Wipro, Aegis and numerous companies like them have around 10,000 workers servicing various aspects of the business.

Keeping in mind the growth of BPO enterprises, it would be an intelligent choice to gamble into the industry. Every day a BPO Company with the same idea is recognized in India alone. This is not only about the present, but it is the future of business.

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