Business Process Outsourcing, popularly known as BPO, is the business strategy where one company hires another company to perform a certain task for them, i.e. they outsource a certain job. Outsourcing customer services, technical support etc. to a BPO is either cheaper or the BPO provider is just better at providing the service. BPO solutions enable companies not only to identify costs accurately but also result in variable costs that adapt automatically to the companies business activities, as opposed to fixed costs which are very hard to change (such as payroll and systems depreciation).
Business Process Outsourcing enables business owners to reduce the burden of work and concentrate on other core aspects of their operation. Outsourcing to a third-party company, which is already well-established and has the relevant experience in providing services, is a much more convenient option. Outsourcing business processes comes with a series of advantages. Some of those include: Cost reduction, availability of experienced professionals, ability to focus on core business, excellent source of customer feedback, access to the latest updated technologies and excellent employment opportunities.
BPO companies also act as a buffer against unemployment and at the same time provide the graduates in the countries where they operate with a chance to move up the economic ladder. In fact, many studies have pointed to this fact, where previously economically underprivileged sections have benefited to a large extent because of the earnings that they have made by working in the BPO sector.
Due to the numerous advantages of the BPO industry, it has seen tremendous growth over the years, and estimates reveal that this growth will be seen in the near future too. Currently the BPO industry is responsible for creating the second highest number of jobs, and it is estimated that overall worldwide BPO market will cross a staggering $400 billion by 2020!