Business Process Outsourcing (BPO) has been found beneficial to the businesses with the results of increased customer satisfaction. More efficient operations, access to global capabilities, increased cash flow, and faster time-to-market are also the very feasible outcomes of BPO.
Non-core business processes, such as human resources, finance and accounting, are critical, but also resource-intensive, time-consuming, and costly. Outsourcing improves operational efficiencies and drastically reduces costs without large, up-front capital investments. Business Process Outsourcing provides quantifiable benefits through improved efficiencies, lower overhead, reduced payroll and benefit expenses, and fewer capital investments.
Companies seeking the Business Process Outsourcing benefits generally engage themselves in a systematic process led by the outsourcer and well designed to ensure a positive and mutually beneficial experience for both client and provider.
BPO allows organizations to move non-core business processes to a services provider so that they may focus on the more important strategic, revenue-generating programs that create profitable growth and sustain business success. BPO provides access to proprietary workflow systems, process re engineering skills, and innovative staffing and delivery models, combined with world-class technology delivered by experts. Business Process Outsourcing provides the flexibility to respond to a rapidly changing marketplace and scale operations up or down as conditions dictate.
How big is this Business Process Outsourcing affair really? The first question is about the size of the ITES/BPO business in the years ahead. There is such a wide range of estimates put out by consultancies and private research agencies that credibility is at a premium. An estimate prepared by IDC that NASSCOM cites sees global ITES business rising from $570 billion in 2002 to $1,200 billion in 2006. The recent E-Commerce and Development Report 2003 cites a Goldman Sachs figure of $570 billion in 2005 for global BPO contracts and a Gartner estimate of $300 billion of ITES revenue in 2004. Another research agency, Forester, says that because of unreliability of suppliers, the global BPO business will rise to only $145 billion by 2008.