Business Process Outsourcing is latest tool being use by corporate bring in cost reduction & work efficiency. In the late 90’s when leading industrialist concentrating on cost cutting the concept of BPO evolved where in companies started outsourcing part of different operations like Data processing , customer support , market research, etc. to focus on the areas of their core competence.
This concept which was started by big corporate no time , filtered down to medium / small size companies.Business Process Outsourcing (BPO) is the delegation of one or more intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. *
Some of the motivation factors as to why BPO is gaining ground are:
Factor Cost Advantage
Superior Competency
Utilization Improvement
Economy of Scale
Business Risk Mitigation
Availability of highly qualified skill pool and faster adoption of well-defined business processes leads to higher productivity gains without compromising on quality.Customers across verticals like Insurance, Banking, Pharmaceuticals, Telecom, Automotive and Airlines seem to be the early adopters of Business Process Outsourcing.
Of the vertical listed above insurance and banking are able to generate bulk of the savings purely because of the large proportion of processes they can outsource like claims processing, loans processing and client servicing through call centers.
Improvement in cost, quality and productivity has encouraged customers to rapidly scale up their offshore operations. It is no longer seen as a one-time cost reduction or process improvement but customers are demanding year-on-year improvements in process metrics.
This concept which was started by big corporate no time , filtered down to medium / small size companies.Business Process Outsourcing (BPO) is the delegation of one or more intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. *
Some of the motivation factors as to why BPO is gaining ground are:
Factor Cost Advantage
Superior Competency
Utilization Improvement
Economy of Scale
Business Risk Mitigation
Availability of highly qualified skill pool and faster adoption of well-defined business processes leads to higher productivity gains without compromising on quality.Customers across verticals like Insurance, Banking, Pharmaceuticals, Telecom, Automotive and Airlines seem to be the early adopters of Business Process Outsourcing.
Of the vertical listed above insurance and banking are able to generate bulk of the savings purely because of the large proportion of processes they can outsource like claims processing, loans processing and client servicing through call centers.
Improvement in cost, quality and productivity has encouraged customers to rapidly scale up their offshore operations. It is no longer seen as a one-time cost reduction or process improvement but customers are demanding year-on-year improvements in process metrics.