This document discusses factors that determine the need for business process outsourcing (BPO) and knowledge process outsourcing (KPO). BPO involves contracting out business functions like back office work, while KPO refers to outsourcing information-related work requiring advanced skills. The top 8 factors driving outsourcing needs are cost savings, reduced overhead, operational control, staffing flexibility, risk management, transformation, innovation, and ability to focus on core activities. India has become a global leader in BPO services due to its large, skilled workforce and investments in infrastructure that support the industry.