Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain. Often the business processes are information technology-based, and are referred to as ITES-BPO, where ITES stands for Information Technology Enabled Service. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of business process outsourcing industry. In India, Business Process Outsourcing (BPO) is the fastest growing segment of the ITES (Information Technology Enabled Services) industry. Factors such as economy of scale, business risk mitigation, cost advantage; utilization improvement and superior competency have all lead to the growth of the Indian BPO industry. Business process outsourcing in India, which started around the mid-90s, has now grown by leaps and bounds. Indian BPO companies offer varied services, such as, customer support, technical support, telemarketing, insurance processing, data processing, forms processing, bookkeeping and internet / online / web research.
Facts and figure of BPO industry in India
- In Indian market the industry is estimated to have reached a 54 per cent growth in revenue.
- Globally the demand of Indian BPO services has been growing at an annual growth rate of 50%.
- The Indian BPO sector is soon to employ over 1.1 million Indians.
- The BPO industry in India has provided jobs for over 74,400 Indians. The number is continuing to grow on a yearly basis.
- A contact centre generates 70% of India's BPO industry revenue; data entry work generates 20% and the remaining 10% from information technology related work.
- In the world Indian BPOs handle 56% of the global business process outsourcing.