INTRODUCTION TO BPO INDUSTRY
Outsourcing began in the early eighties when organizations started delegating their non-core functions to an external organization that was specialized in providing a particular service, function or product. In outsourcing, the external organizationwould take on the management of the outsourced function. In outsourcing, theoutsourcer and the outsourcing partner have a greater relationship when comparedto the relationship between a buyer and a seller. In outsourcing, the outsourcer trusts the outsourcing partner with vital information. Outsourcing is no longer confined to the outsourcing of IT services. Outsourcers in the US and UK nowoutsource financial services, engineering services, creative services, data entryservices and much more.Most organizations are opting to outsource because outsourcing enablesorganizations to access intellectual capital, focus on core competencies, shorten thedelivery cycle time and reduce costs significantly. Organizations feel outsourcingis an effective business strategy to help improve their business.
BUSINESS PROCESS OUTSOURCING
“Business Process Outsourcing” is the fastest-growing segment of outsourcingmarket – A industry which we all “Love to hate and hate to love”.Business process outsourcing is a type of outsourcing that involves the contractingof the operations and the responsibilities of a specific business processes or functions to a third party service provider.BPO is typically categorized in to back-office outsourcing which includes internal business functions i.e. human resources, or finance and accounting and front officeoutsourcing which includes customer related services i.e. call center services.Business process outsourcing (BPO) is the leveraging of technology vendors to provide and manage a company's critical and/or non-critical enterpriseapplications. Through the business transformation process of service-orientedtransformation, which leverages the technologies and standards of service-orientedarchitecture, companies can increasingly leverage third party companies that act as business service providers. Business process outsourcing can use off-shoreresources, but is not required.