Market Research and Analysis

Market Research and Analysis

Introduction:

What is BPO?

Business Process outsourcing (BPO) can be defined as the transfer of an organization's entire non-core but
critical business process/function to an external vendor who uses IT based service delivery. BPO aims to
raise a Client company’s shareholder value because it is about delivering outcomes—that is, higherperforming
business processes.
Companies essentially have three kinds of processes: core processes (which give strategic advantage),
critical, non-core processes (which are important but are not competitive differentiators), and non-core, noncritical
processes (which are needed to make the environment work). No one suggests outsourcing core
processes; they recommend investing in them. But many do recommend outsourcing critical, non-core
processes to providers who specialize in those processes because they will invest in them and aim to make
them world-class. And most advisors recommend outsourcing all non-core, non-critical processes.
Outsourcing does not mean handing over an entire process. Generally, it means turning over to a BPO
provider the “how” aspects of a process—the systems, infrastructure, administration, execution, and some
of the design of non-core processes. But retain the “what” aspects of the process—the governance, policysetting,
decision making, and strategy of these processes. The intent is to outsource the work (the boring
part) while retaining the direction-setting part.
Outsourcing is not a one-time event; it is continuous. Companies that outsource one process later
outsource another, then another—as their strategies change and new outsourcing options open up. The
outsourcing field is thus not slowing down. At the moment, BPO is the driving force, and it is developing
fast.

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