| Outsourcing is an age old practice and the advent of | | | | a significant drop in their operational cost through |
| business process outsourcing is clearly an example of | | | | outsourcing. |
| paradigm shift. It is the way in which business operates, | | | | The offshore BPO services are expected to grow at |
| or can be operated. The advent of current BPO | | | | a significant rate per year within the Asia-Pacific |
| revolution has been driven by the availability of cost | | | | market. The growth rate will be about $14 billion by the |
| effective technology such as Internet broadband | | | | year 2010. The BPO business in India will be booming |
| services, inexpensive data storage, continued business | | | | despite the current economic recession. The economy |
| process specialization and online analytical processing | | | | will stabilize and there five fold growth of the BPO |
| tool. | | | | industry within the next five years. |
| The paradigm shift is that, the technology has enabled | | | | According to a research, 'Road map 2012 - capitalizing |
| global exchange of BPO services. Today, BPO | | | | on the expanding BPO landscape', conducted by |
| industry had matured to the extent that the costs are | | | | Nasscom and Everest Group, the revenue of the |
| normalizing and becoming attractive. Over the last | | | | Indian BPO industry will touch $50 billion and will add |
| three decades Business Process Outsourcing has | | | | about 2.5% of the gross domestic product by the year |
| been catering to number of services like retail, | | | | 2012. Presently BPO sector employs about 8 lakh |
| insurance, mortgage, banking, finance, health care, | | | | people and the annual revenue is about $11 billion. Over |
| telecommunications, travel, technology, hospitality and | | | | the next 5 years the BPO industry will employ nearly 2 |
| many more. | | | | million people. |
| Today, many offshore firms are consolidating and | | | | Once again, one reason why BPO has grown over |
| standardizing their operations by outsourcing their | | | | the 10 years is the availability of high end technology |
| business process to third parties. There are many | | | | and infrastructure. Without the availability of Internet |
| BPO service providers in India that offer cost effective | | | | and broadband, this could not have been possible. The |
| and focused management expertise. In the present | | | | development in technology has broken down the |
| scenario many UK and US based firms are looking at | | | | barriers of global communication. |
| countries like India, Philippines, China and other South | | | | Considering the progress made in the outsourcing |
| Asian territories to outsource their services. | | | | industry over the last ten years is standardizing and |
| According to a research conducted NelsonHall- a BPO | | | | automation of business processes, the next five years |
| analyst firm | | | | promise similar advances. Typically, the multinational |
| 80% of the firm claimed that, outsourcing has | | | | companies define market trends and the acceptance |
| increased their competitiveness. | | | | of new product and services. Keeping all these in mind, |
| 87% of the companies said that, outsourcing had | | | | the BPO industry could take a new shape over the |
| improved their internal processes. | | | | next five years. |
| While 77% of the companies said that, they could see | | | | |