It has been expensive to hire best people in company. Therefore many companies have chosen to outsource various aspects of MIS functions. A specialized firm can always offer better services at better price. Worldwide spending on BPO services reached $405 billion in 2003, an increase of about 8% from 2002. Revenues are expected to grow at a compound annual rate of 11% through 2008, when they will total $682.5

What is Outsourcing ?

“The strategic use of outside resources to perform activities traditionally handled by internal staff and resources”. It is also defined as the process of transferring an existing business activity, including relevant assets, to a third party.

Business Functions or Process that can be Outsourced

 

    

Human Resource Sales, Marketing and Customer /service Payment Service Finance Administration Maintenance Manufacturing

Types of BPO
BPO can be classified as :  Voice BPO i.e. call centers  Non-voice BPO

Call Centers

 

A call center is an umbrella term that refers to reservations centers, help desks, information lines or customer service centers, regardless of how they are organized or what types of transactions they handle. refers to a voice operations environment includes customer support, operator services, directory assistance, multilingual customer support, credit services, card services, telemarketing, interactive voice response and web-based services.

Voice BPO services
   

Customer Support Services Technical support services Telemarketing Services Employee IT Help-desk Services

Non-voice BPO

These are the Business Processes, which are outsourced and are not related to direct telephonic or response services.

Non-Voice BPO Services

 

Data Entry Services/Data Processing Services Data Conversion Services Scanning, OCR with Editing and Indexing Services Book Keeping and Accounting Services

Strengths
 

 

Highly skilled, English-speaking workforce. Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts. Lower attrition rates than in the West. Dedicated workforce aiming at making a longterm career in the field. Round-the-clock advantage for Western companies due to the huge time difference.

Weaknesses

The cost of telecom and network infrastructure is much higher in India than in the US. Long working hours