The Past and Present of BPO Companies
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Business Process outsourcing means delegation of work to another company. As of today, almost everyone knows the meaning of outsourcing. But, do they really understand the benefits? We would discuss some of the facts and some of the benefits.
BPO is often divided into two categories:
1. Back Office: Which includes internal business functions such as billing or purchasing.
2. Front Office: Which includes customer-related services such as marketing or tech support.
Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer. BPO includes the software, the process management, and the people to operate the service, while a typical ASP model includes only the provision of access to functionality and features provided or 'served up' through the use of software, usually via web browser to the customer.
There are 3 types of BPO Companies:
1. Offshore Companies
2. Onshore Companies
3. Near Shore Companies
Offshore BPO Companies are companies located overseas. Most of the Offshore Companies are located in India, Philippines, China, Pakistan, etc.
Onshore companies based in the same country are called Onshore companies. It means, a company based in US is outsourcing the chat support to a US based company and the service is also delivered by a US based Call center.
Near Shore BPO Companies would mean companies which are based very near to the nation. For example: A Company based in Canada servicing to a US based company. Some examples of Near Shore BPO Companies are call centers based in Dominican Republic, Romania, Costa Rico, Mexico, etc.
Majority of BPO companies are located overseas and provide call center services, data entry work, email answering services, telemarketing,etc.
Benefits of Outsourcing Companies:
1. Cost Reduction: The most important factor is cost reduction. Outsourcing Companies operate at very low costs, especially the Offshore Companies. An average Call center in US charges $15- $20 per hour for technical support or customer service, whereas, call centers in India charge $8 - $12 an hour for the same job.
2. 24/7 operations: Call centers in offshore nations operate 24 hours a day, 7 days a week and 365 days every year. This proves to be an excellent advantage over onshore call centers.
3. Quality of Service: BPO Companies focus on delivering high quality service to the companies they work for. Quality and data security parameters like ISO, BS 7799, 6 Sigma, COPC, lean are studied and implemented to maintain high quality standards.
BPO Companies are one of the fastest growing companies today. In India giants like GE, American Express, IBM, Convergys, Aegis, Wipro, E4E, 24/7 have around 10000 employees servicing different aspects of the industry.
Considering the growth of BPO Companies, it would be a wise decision to venture into the industry. Experts predict that the Outsourcing Companies will rise in near future, opening more avenues for all. Almost every day a new BPO Company is established in India alone. This is not just the present, it is the future.
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