Everything You Want to Know About Outsourcing to BPO Companies

Outsourcingbetween the client and the provider is not much though
A company is said to be outsourcing when it letsthey are based in different countries.
some external service provider to execute and3. Offshore - when the geographical distance between
manage a business process. This is also known as thethe client and the provider is massive and both are
Business Process Outsourcing or BPO.based in different countries with huge time differences
In such an arrangement there are mainly two parties -between them.
the client who engages an external party to take careReasons for outsourcing
of some of its business process, and the BPO serviceCompanies resort to outsourcing for various reasons;
provider which is the external party hired by the clientthe most common of them are...o Certain processes
to execute the desired business process.can be performed economically from some remote
In case of large and complex BPO projects, brokerslocation because of certain local factors such as less
are also involved whose task is to hunt for andexpensive but highly skilled workforce.o For an MNC,
arrange the right BPO company for the client. Largecustomers are scattered all over the world, so to
and respected broker firms are also responsible forserve them better, local talent is required.o Because of
the BPO operational management to some extent.budgetary or legal or some other constraint it is not
Types of outsourcingpossible to build up the necessary capacity for
Outsourcing can be classified on the basis of type ofexpansion in house.o Certain non core processes
work being outsourced and the basis of geographicalwhich consume significant resources and time can be
divide between the BPO services provider and thegainfully run from outside, thus employing precious
client.resources and manpower to sharpen the core
There are three main categories of work which isbusiness areas.
usually outsourced:Benefits of outsourcing
IT - where affordable design, development,Outsourcing has considerable benefits for the client
implementation, management of IT products andcompanies and some of them are:
processes and web services is outsourced to theCost cutting
BPO services provider.This is one of the main reasons for outsourcing.
Customer servicing and management - this is usuallyCertain nations such as India, China etc. are abundant
called voice outsourcing as the major work involveswith natural resources, cheap labor, favorable policies
interaction with the existing/prospective customersfor foreign investors etc. All these factors result in
through voice or web media for the purpose ofconsiderable savings for client companies particularly in
providing customer support or to handle telemarketingoperations such as affordable customer service, IT
on behalf of the clientdevelopment, web services, etc.
Other functions - large companies also prefer toBigger pool of talent at a fraction of cost
outsource the non-core administrative and backendCountries such as India have made great strides in IT
work such as accounting, HR, marketing etc. to theexpertise and have become hubs for affordable
BPO service providers so as to allow themselves toIT-enabled services and BPO services thanks to their
focus on strengthening their core business areas.large pools of cheap but highly skilled
On the basis of the geographical difference betweenEnglish-conversant manpower.
the BPO services provider and the client, outsourcingTime Zone Coverage
can again be classified into three categories:The time zone differences BPO clients and BPO
1. Inshore/onshore - outsourcing within the sameservices providers actually works out to be a blessing
countryin disguise, since the BPO companies can serve their
2. Nearshore - when the geographical distanceclients 24/7 all round the year.