Business Process Outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in the marketplace. BPO is often divided into two categories: back office outsourcing, which includes internal business functions such as billing or purchasing, and front office outsourcing, which includes customer-related services such as marketing or tech support.
BPO that is contracted outside a company's own country is sometimes called offshore outsourcing. BPO that is contracted to a company's neighboring country is sometimes called nearshore outsourcing, and BPO that is contracted within the company's own country is sometimes called onshore outsourcing.
The most common examples of BPO are call centers, human resources, accounting and payroll outsourcing.
Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer. BPO includes the software, the process management, and the people to operate the service, while a typical ASP model includes only the provision of access to functionalities and features provided or 'served up' through the use of software, usually via web browser to the customer. BPO is a part of the Outsourcing Industry. It is dependent on Information Technology, hence it is also referred to as Information Technology Enabled Services or ITES. Knowledge Process Outsourcing, or Legal Process Outsourcing are some of the sub sets of Business Process Outsourcing.
India has revenues of 6.4 billion USD from offshore BPO and 36 billion USD from IT and total BPO. 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 South Africa, Philippines and Eastern Europe have emerged to take a share of the market. China too is trying to grow from a very small base in this industry, though the industry is expected to continue to grow in India. Its market share of the offshore piece is expected to reduce.
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.
Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Few of the motivation factors as to why BPO is gaining ground are:
- Factor Cost Advantage
- Economy of Scale
- Business Risk Mitigation
- Superior Competency
- Utilization Improvement
Generally outsourcing can be defined as - *An organization entering into a contract with another organization to operate and manage one or more of its business processes. Different Types of Services Being Offered By BPO's
Customer Support Services Our customer service offerings create a virtual customer service center to manage customer concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 365 days basis. Service Example: Customers calling to check on their order status, customers calling to check for information on products and services, customers calling to verify their account status, customers calling to check their reservation status etc.
Technical Support Services Our technical support offerings include round-the-clock technical support and problem resolution for OEM customers and computer hardware, software, peripherals and Internet infrastructure manufacturing companies. These include installation and product support, up & running support, troubleshooting and Usage support.
Service Example: Customers calling to resolve a problem with their home PC, customers calling to understand how to dial up to their ISP, customers calling with a problem with their software or hardware.
Telemarketing Services Our telesales and telemarketing outsourcing services target interaction with potential customers for 'prospecting' like either for generating interest in products and services, or to up-sell / promte and cross sell to an existing customer base or to complete the sales process online. Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling to retail households to sell leisure holidays, outbound calling to existing customers to sell a new rate card for a mobile service provider or outbound calling to sell credit or debit cards etc.
Employee IT Help-desk Services Our employee IT help-desk services provide technical problem resolution and support for corporate employees.
Service Example: of this service include level 1 and 2 multi-channel support across a wide range of shrink wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS, connectivity etc., office productivity tools support including browsers and mail, new service requests, IT operational issues, product usage queries, routing specific requests to designated contacts and remote diagnostics etc.
- Insurance Processing Our insurance processing services provide specialized solutions to the insurance sector and support critical business processes applicable to the industry right from new business acquisition to policy maintenance to claims processing.
Service Example: New Business / Promotion: Inbound/outbound sales, Initial Setup, Case Management, Underwriting, Risk assessment, Policy issuance etc. Policy Maintenance / Management: Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification, Surrender Audits Accounts Receivable, Accounting, Claim Overpayment, Customer care service via voice/email etc.
- Data Entry Services / Data Processing Services
Service Example: - Data entry from Paper/Books with highest accuracy and fast turn around time (TAT) - Data entry from Image file in any format - Business Transaction Data entry like sales / purchase / payroll. - Data entry of E-Books / Electronic Books - Data Entry : Yellow Pages / White Pages Keying - Data Entry and compilation from Web site - Data Capture / Collection - Business Card Data Entry into any Format - Data Entry from hardcopy/Printed Material into text orrequired format - Data Entry into Software Program and application - Receipt and Bill Data Entry - Catalog Data Entry. - Data Entry for Mailing List/Mailing Label. - Manuscripting typing in to word - Taped Transcription in to word. - Copy, Paste, Editing, Sorting, Indexing Data into required format etc.
- Data Conversion Services
Service Example: - Conversion of data across various databases on different platforms - Data Conversion via Input / Output for various media. - Data Conversion for databases, word processors, spreadsheets, and many other standard and custom-made software packages as per requirement. - Conversion from Page maker to PDF format. - Conversion from Ms-Word to HTML format - Conversion from Text to Word Perfect. - Conversion from Text to Word to HTML and Acrobat - Convert Raw Data into required MS Office formats. - Text to PDF and PDF to Word / Text / Doc - Data Compilation in PDF from Several Sources. - E-Book Conversion etc.
- Scanning, OCR with Editing & Indexing Services
Service Example: - High speed Image-Scanning and Data capture services - High speed large volume scanning - OCR Data From Scanned page / image - Scan & OCR paper Book in to CD. - ADOBE PDF Conversion Services. - Conversion from paper or e-file to various formats
- Book Keeping and Accounting Services
Service Example: - General Ledger - Accounts Receivables and Accounts Payable - Financial Statements - Bank Reconciliation - Assets / Equipment Ledgers etc.
- Form Processing Services:
Service Example: - Insurance claim form - Medical Form / Medical billing - Online Form Processing - Payrol Processing etc.
- Internet / Online / Web Research
Service Example: - Internet Search, Product Research, Market Research, Survey, Analysis. - Web and Mailing list research etc.
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- Guest 7 years agoYa I am agree with you The benefits of business process outsourcing are beyond saving time and money.I am interested to work with you. please send me company full details.Thanks for sharing this informative article.