What is BPO and its Emerging Areas?
Business Process Outsourcing (BPO) has its origins in Total Quality Management (TQM)
and Business Process Re-engineering (BPR). The idea is that, corporations can improve their efficiency by reshaping themselves and concentrating more on core activities and outsourcing the non-core processes. Companies turned to outsourcing because of the need to improve operational efficiency, optimize the use of capital, increase the organization's economic value-add and address the heightened pace of change resulting from deregulation and globalization.
Major corporations in the US and Europe are outsourcing their back office operations to
India to save costs, e.g. employee payroll is maintained in India for their employees worldwide.
The demand for BPO services in functional areas such as finance, marketing, sales,
human resources and administration, is expected to remain high for the forecast period of 2003-07 (IDC).
According to The Economist, on the industry front more and more intellect intensive
jobs will be moved from developed economies to BPO centers. It started with Medical Transcription, Accounting and Payroll processing and will extend to Business Studies, Legal and Medical Support.
Business Process Outsourcing (BPO) has its origins in Total Quality Management (TQM)
and Business Process Re-engineering (BPR). The idea is that, corporations can improve their efficiency by reshaping themselves and concentrating more on core activities and outsourcing the non-core processes. Companies turned to outsourcing because of the need to improve operational efficiency, optimize the use of capital, increase the organization's economic value-add and address the heightened pace of change resulting from deregulation and globalization.
Major corporations in the US and Europe are outsourcing their back office operations to
India to save costs, e.g. employee payroll is maintained in India for their employees worldwide.
The demand for BPO services in functional areas such as finance, marketing, sales,
human resources and administration, is expected to remain high for the forecast period of 2003-07 (IDC).
According to The Economist, on the industry front more and more intellect intensive
jobs will be moved from developed economies to BPO centers. It started with Medical Transcription, Accounting and Payroll processing and will extend to Business Studies, Legal and Medical Support.
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