Quick Reference Study Notes For Business Process Outsourcing (BPO) (Advanced)

Business Process Outsourcing (BPO)


Business Process Outsourcing (BPO) is outsourcing of business functions generally performed to achieve various benefits such as cost savings, better quality and ability to focus on core competence. The customer transfers the complete responsibility of these functions to the company who guarantees certain service quality standards. Such processes embrace client service, payroll process, inventory management etc …

The BPO business may be a developing sector and is being studied by analysts and researchers around the world The BPO market worldwide is expanding with new services, India being the most preferred destination for offshore BPO’s

Cost savings is one of the most important factor now. Information security, execution capability and financial stability are important considerations while selecting a service provider.


Topics to be covered

  • Types of Services

  • Key Elements of BPO

  • Advantages

  • Career in BPO

  • Skills Required

  • Outsourcing Opportunity


World’s Top BPO Companies


Company Names


IBM Global / Daksh




Hewlett Packard




Ernst & Young / Capgemini


Wipro Spectramind


ICICI One Source


eFunds Global Outsourcing




Affiliated Computer Systems


Types of Services-

  • Call center

    It includes services like inbound call center service, outbound call center service, telemarketing service and technical support services. This services include all the customer support services.

  • Chat support

    Technical as well as non technical chat services are provided to offer multi channel support that every customer demands today. With chat support services, your customers get period help whereas they're browsing your website. This reduces support time drastically.

  • Email support

    Email is the main channel of customer communication. Your business wants a powerful email support service to make sure your customers get a quick response from you and are happy with the resolution provided. Providing your customers with skilled and timely email support to handle each question or challenge.

  • Data Entry

    Get accurate, error-proof and customized data entry services.

Key Elements of BPO

Business Process Outsourcing in today’s world is seen as a strategic management possibility. Every company in today’s world has one or more of its services outsourced so that it can focus more on its core competencies.
Outsourcing gives you the right package of people, processes and technologies to operate effectively in the global marketplace without burdening your time and budget.


Business Process Outsourcing (BPO) has been found useful to the companies with the results of magnified client satisfaction.

Most Important Advantages of BPO-

  • Productivity improvement

           BPO enables the corporate executives to concentrate upon their core business areas. BPO saves time and helps them to explore new revenue areas, accelerate other projects and focus on their customers

  • The utilisation of the resources

BPO enables the utilisation of resources. This increases the efficiency and productivity of employees. Availability of skilled employees and adoption of technologies leads to utilisation of resources and productivity.

  • Cost Savings

           Cost savings can be significant to any business organisation. BPO not only helps in reducing cost but also increase productivity and revenue significantly. Cost reduction is feasible through method enhancements, reengineering, and the use of technologies that reduce and bring administrative and other costs under control. Outsourcing helps the corporate maintain lower rates with higher service solutions, thereby giving them a much better market position and even a competitive advantage.

  • Focus on core business areas:

An efficient business strategy is important to require the business to the highest. Outsourcing allows the highest management level handy over crucial however non-core activities of the business to the third party. This facilitates high management levels to target the core activities.

Career in BPO

  • Outsourcing as a business is rapidly coming of age. The number of corporations providing outsourcing services is increasing quickly, methodologies and procedures are maturing quickly and a lot of individuals are hopping on to the outsourcing bandwagon.

  • Outsourcing is usually thought of as substitutable with call centres, because of early growth and promotion in this area. However, changes within the business are opening doors for everybody. Consider these vital changes and the way they're throwing up new opportunities.

  • Outsourcing isn't restricted to call centres or medical transcription any longer. As the business matures, the worth of services provided is additionally increasing. Now, there are firms doing equity analysis, hedge fund accounting, advanced research, and plenty of additional specialized activities. For example, Intel and GE are doing high end research, JPMorgan and Morgan Stanley are concerned in Equity analysis, McKinsey is sourcing consulting support – the examples are numerous and increasing every day.

Skills Required-

  • Quality and metrics experts – The most effective way to control any operational activity is to measure it on numerous parameters. Most outsourcing companies take this very seriously. Quality and metrics consultants generally have a statistics background or have significant experience within the operational space.

  • Risk and Business Continuity Planning (BCP) experts – Outsourcing an operation is additionally a good way to cut back business continuity risks.People concerned within the Operational risk and BCP areas play this role.They create, test and manage elaborated plans to make sure continuity of operations within the event of a disaster

  • Training and development experts – The single most important component in a productive migration is that the coaching of individuals who will be performing the function from the offshore location. Ongoing training is also very important to ensure service quality. Training and development consultants wear several hats – superintend the method coaching, train on soft skills like communication, team work, team leadership, etc

  • Administration experts – Running an outsourcing centre isn’t regarding hiring staff and shopping for PC’s. It takes a complex logistical and administrative department to stay it running. This is because the demands of an office of an outsourcing company are very different – transportation arrangements for night shift, 24 hour cafeteria, frequent travel arrangements, and many ad-hoc tasks. An administration professional takes care of these things, and it are often a rewarding experience for someone with background and interest during this area.

Outsourcing Opportunity -

  • BPO is usually categorised into back office outsourcing, which has internal business functions like human resources or finance and accounting, and front office outsourcing, which has customer-related services such as contact center services.

  • In addition, other outsourcing segments among the world trade embrace business services, energy, technology, health care and pharmaceuticals, retail, travel and transport, and telecommunication and media.

  • India is a clear leader in this area, providing a extremely trained, educated, cost effective, communicative labor force.



In the past few years, outsourcing has become an essential part of business world.Over the last decade, the BPO service market has been growing at a gentle pace.But the economic crisis affects a greater or lesser extent to every economy in the world, therefore it also affects the BPO market. Although, the Indian BPO sector has become the country’s premier growth center, crossing significant milestones in terms of revenue growth, employment generation and value creation. India's BPO industry is known for its massive economic growth and its huge employment base.

*NOTE : "This study material is collected from multiple sources to make a quick refresh course available to students."

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