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OVERVIEW

Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria.

Few of the main factors as to why BPO is gaining ground are:

# Factor Cost Advantage
# Utilization Improvement
# Economy of Scale
# Superior Competency
# Business Risk Mitigation

Availability of highly qualified skill pool and faster adoption of very well-defined business processes leads to higher productivity gains without compromising on quality.

Customers across verticals like Insurance, Banking or Financial intitutions, Telecom, Automotive, Pharmaceuticals and Airlines etc. seem to be the early adopters of Business Process Outsourcing. Of the vertical listed above insurance and banking are able to generate bulk of the savings mainly because of the high proportion of processes they can outsource like claims processing, loans processing and client servicing etc. through call centers.

Improvement in cost, quality and productivity, turn around time etc. has encouraged customers to rapidly scale up their offshore operations. It is no longer seen as a one-time cost reduction or process improvement but customers are demanding year to year improvements in process metrics.

Why Outsourcing from India?

The Business Process Outsourcing industry in India has been growing 70 percent a year and is now worth US$1.6 billion, employing 100,000 people. And as McKinsey analysts put it, BPO has to grow only 27% till 2008 to deliver US$17 billion in revenues and employment of a million people.

Advantages of outsourcing to India? SUMMARY :

# India - large pool of engineering resources
# 12 hr time difference - Savings in time and money
# Cost benefits
# Quality awareness and processes
# Government support - infrastructure availability
# Benefit of track record