2. INTRODUCTION - 'OUTSOURCING'
A practice used by different companies to reduce costs by
transferring portions of work to outside suppliers rather than
completing it internally.
Outsourcing is an effective cost-saving strategy when used
properly. It is sometimes more affordable to purchase a good
from companies with comparative advantages than it is to
produce the good internally.
Example: Manufacturing company outsourcing would be Dell
buying some of its computer components from another
manufacturer in order to save on production costs.
3. BPO- Business Process Outsourcing
Business process outsourcing (BPO) is a subset of outsourcing that
involves the contracting of the operations and responsibilities of specific
business functions (or processes) to a third-party service provider.
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.
5. KPO- Knowledge Process Outsourcing
Knowledge process outsourcing (KPO) describes the outsourcing of core
information-related business activities which are competitively important or
form an integral part of a company's value chain. KPO requires advanced
analytical and technical skills as well as a high degree of specialist expertise.
KPO services include all kinds of research and information gathering, e.g.
intellectual property research for patent applications; equity research,
business and market research, legal and medical services; training,
consultancy, and research and development in fields such as pharmaceuticals
and biotechnology; and animation and design.
6. TOP 8 FACTORS DETERMINING THE NEED FOR
OUTSOURCING(BPO/KPO)
Cost Savings & Efficiency
Reduced Overhead
Operational Control
Staffing Flexibility
Continuity & Risk Management
Transformation
Innovation
Ability to focus on Core Activity
8. OTHER FACTORS -
Lack of in house experience
Improved Compliance
Access a wider choice of service providers
Enhanced Accuracy & Ensuring better
quality
Technological Advances
10. CAUSES OF BPO’S IN INDIA
India is a world leader in BPO services: Multi-million dollar
investments, a growing share of the global business and
increasing revenues. In 2013, when most industries contracted,
export services from the Indian BPO Industry.
It is a well-established industry that provides direct employment
to around 1 million.
BPO provides the right skills, opportunities and global exposure
for long-term career growth. Companies provide in-house
learning and development programs, mentoring and opportunities
to pursue higher education while working.
12. WHY BPO IS THE CAREER OF THE FUTURE?
Fast growing industry globally and in India
An industry that offers ample opportunities for career
growth
Intensive training leads to all-round development
Opportunities to specialise in domain/industry add an edge
to your profile
World-class infrastructure creates conducive long-term
working environment
