Monday, September 27, 2010

BPO outsourcing Services

Business process outsourcing is the assignment of product or function specific business processes to a 3rd party offshore provider that executes and manages the process according to an agreed upon criteria and structure that is measurable for performance.

BPO Services has become a very powerful and recognized approach to the accomplishing a wide variety of strategic and tactical goals from a mere tool for cost savings in transaction-intensive, back office business processes.

Benefits of BPO

1. Turn Key Solution – BPO’s provide a turnkey solution to the process of launching a new startup business, allowing them to be fully operational in a matter of weeks rather than months through state-of-the-art facilities, equipment and workforce.

2. Competitive Edge – businesses can turn their existing business processes into highly profitable world-class BPO solution.

3. Cost Savings – BPO take variable costs out of the equation and create a fixed cost thus significantly reducing employee overhead costs.

4. Increased Revenue – firms partnered with BPO firms acquire new and better knowledge aside from the more capable processes thus increasing their revenues.

The point of view that business process outsourcing is just a mere method of trimming down fixed overhead costs has drastically changed over the decades. Now, BPO is considered more and more as a strategic move to create a competitive edge over competitors. BPO allows a company to put more focus on its core product, functions and processes by assigning its non core functions to a 3rd party provider that specializes on the said function. Outsourcing human resource management is a great example, the HR functions like payroll and benefits, recruitment, and personnel evaluation are delegated to an call center provider that specializes in HRM. The provider will also keep the company posted with constant changes and updates in the HRM realm.

Experts consider that the real advantage of BPO is something intangible and may not even show up or be valued in the balance sheet or any other financial statement. The value BPO brings does not necessarily mean cost savings. Elements such as support and time to market are likely to be critical to success but are usually invaluable.

BPO’s in India are viewed as one of the top drivers that will keep pushing the country as the top destination for outsource services. Costa Rica now supplies several noncore yet critical backroom operations that have been outsourced to India that include accounting, contact center services, human resource administration, virtual assistants, and web design to several countries. With the country’s huge pool of talent especially when it comes to English proficiency, coupled with excellent telecommunications infrastructure, now India is quickly becoming the destination for global BPO.

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