Business Process Outsourcing (bpo)

 closure.
  
Outsourcing is subcontracting a process or piece or 
work, to a third-party company. A firm’s decision to 
outsource is based on several factors such asBPO vendors offer their services on a fee-for-service
lowering operational costs, resources, feasibility ofbasis. This is either on a Full Time Employee (FTE) or
competencies and global market dynamics.Pay For Performance (PFP) model. A healthy BPO
 unit will invest in the time and tested variable cost
 structure function as it does not require investing in
 assets thus making the unit flexible in its scalability. This
Outsourcing and off shoring are used interchangeably.revenue generation model is rapidly increasing as it
Outsourcing involves contracting with a supplier,allows for optimal utilization of funds and resources to
whereas off shoring is the transfer of an organizationalrun day to day businesses.
function to another country. 
  
  
 In India, The National Association of Software and
With emerging times and market dynamics there isServices Companies (NASSCOM) mediates as a
now a very thin line drawn between outsourcing andwatch dog to the Indian software industry and Indian
off shoring.BPO industry.
  
  
  
Buisness Process Outsourcing (BPO) is a part of theA significant concern for the BPO industry is
outsourcing industry and is dependent on informationInformation Security and Data Intellectual Property. An
technology. This is referred to as Informationoutsourcing unit uses internal measures to minimize if
Technology Enabled Services or ITES. Knowledgenot eradicate security issues besides seeking
Process Outsourcing (KPO) and Legal Processassistance from local law enforcement agencies. Such
Outsourcing (LPO) are some of the subsets ofmeasures include but are not limited to:
business process outsourcing to name a few. 
  
  
 1. Mobile phones and cameras are prohibited on the
BPO is also an extension of the Service Industry. Aproduction floor as well as in data sensitive areas.
Service Level Agreement (SLA) measures the quality2. Ban on the usage of any recording devices on the
of service and contractual agreements. However aproduction floor including paper and pens. This means
more iron clad contract is drawn out to weed out anycreating a paperless environment wherein employees
contractual loop holes. This is referred to as theare restricted from recording any information and
Service Delivery SLA.removing it where it can be accessed by unauthorized
 personnel.
 3. Restricted or no usage of internet on the production
 floor for employees.
An integral part of quality is CSAT scores. These are 
end user experiences measured through customer 
satisfaction questionnaires (CSAT). This function allows 
quality to be tracked over time and to tweak and fixIn India data security is governed under the Information
any corrective action that has been identified and seekTechnology Act, 2000.