Benefits of Business Process Outsourcing

BPO as expanded sounds as Business Process Outsourcing and can be aptly defined as the act of utilizing the services of a third party by a company in order to perform its back office operations that might be payroll administration, customer helps desks or call centers, tele-marketing, accounting, billing; the list is endless.

In a globally competitive business environment, outsourcing has become a business necessity. Corporate have realized the importance of outsourcing, which is important to retain their competitive advantage. The outsourcing industry, though driven by technology is highly people-centric. The outsourcing service provider has to continually strive to move up the value chain of the BPO-process, not only to maximize the returns, but also to provide value-addition to the client.

Business Process Outsourcing includes the following areas Back office operations, Customer Relationship Management, Call Centers and tele-marketing, Tele-servicing and product support, Payroll maintenance, Finance, Accounting and billing, Human Resources, Logistics Management, Supply Chain Management, Medical transcription, Insurance Claims Processing, Legal database maintenance and a lot more.

In general a person with any graduation can join the BPO. Some BPO's like to take people with MBA but then again the specialization are of an individual hardly makes any difference. This is the industry; where there is no reference checks and very often people don't even specify there exact age.

There are different types of BPOs like healthcare BPOs, transaction processing BPOs, human resource BPOs, media and entertainment BPOs and so on. The working conditions vastly differ in each one. For example, at a healthcare BPO, a medical language specialist does the transcription. Different kinds of BPOs require different skills.

BPOs provide proper health care facilities, work environment, and recreational activities for the employees. They provide sufficient breaks between the login hours. Many BPOs provide indoor games such as balls, carom boards, chess, etc. to their employees on the floor to remove the monotony of the job.

The BPO industry has flourished at a frantic pace in the last few years and companies have ended up with huge savings by being a part of the industry. By outsourcing their back office business processes, companies can cut costs, better concentrate on their core businesses and strengths, ensure better customer satisfaction and in a way get an edge over their competitors.

A report suggests that US firms have saved nearly $8 billion through outsourcing to third world nations like India. Benefits derived from BPO Services can be summarized as follows: Increase productivity, Cut operational costs, Provide better service, save costs, improved accountability.