If you are in business, you’ve probably heard people throwing out the term BPO. Ever wonder what BPO means? It does not stand for “Billy’s Poor Ostrich” or “Buy Pork Only”; it is an acronym for Business Process Outsourcing. In a nutshell BPO refers to the contracting of specific business tasks to an outside entity. You may know also know BPO as its sister term outsourcing. However you refer to the action, the purpose is to reduce business expenses by using a third party to do the task cheaper and more efficient. The company engaging in outsourcing aims to enhance their value through cost reduction as well as improving their internal procedures thus moving closer to a Six Sigma business structure. The outsourcing process involves delegation of some business responsibilities to an outside entity facilitating the business to focus on their core competencies.
Where are Businesses Outsourcing
In the BPO industry, India is really stepping into the limelight. More multinational and domestic US companies are delegating their business to outsourcing houses based in India. The country is embracing the outsourcing label and truly sculpting their infrastructure to be a global business support system. Indian outsourcing is successfully unifying a skilled labor force with technology leading to improved productivity without compromising standards. With an A-rated education system and a highly proficient English speaking crowd, the nation seems to have outrun superpower outsourcing firms based in the US and the UK. In addition, outsourcing to the companies that are based in India are highly cost effective.
Offshore BPO Providers Offer Quality Outsourcing at a Lower Cost
Businesses outsourcing always look for nations that can deliver quality work at a lesser cost. India, as well as other countries like the Philippines and Singapore, are growing BPO countries because the cost of labor as well as the cost to run a business is comparatively less. In all of these countries, education, taxes, and infrastructure are being structured to make them all great options for outsourcing. Even the education system in these countries favors English language studies to contribute superior candidates to this new global workforce.
The Future of BPO
The business process outsourcing industry will never go out of fashion. Businesses drive toward efficiency has sparked the BPO revolution. Unless winds shift and businesses try to decrease efficiency and increase cost, outsourcing in its current form will grow to encompass all other variety of business tasks. Right now, answering services and secretarial services are popular outsourcing avenues but the future promises many other business tasks will join the herd. And, with advancements in web based shared platforms and lower cost VoIP telephone lines, the industry will continue to grow. As long as the education system in “outsourcing countries” continues an English centric curriculum, BPO services will evolve to be almost exclusively offshore. From the point of view of a US based business, the only preclusion to outsourcing could be the US tax structure punishing US based companies that outsource overseas.
Today, many business functions that are delegated to third parties include mortgage processing, human resource processing solutions, customer services, knowledge services, IT help desk services, finance and administration services, telemarketing services, insurance services, and procurement services. The tasks relating to the customer services are generally transferred to call centers and dispatching services are usually managed by telephone answering services. The industry is already supporting many business tasks and the future promises even more.