How Intelligent Operations is Reinventing BPO Services in India?

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Posted: December 10, 2021
Category: blog , IT Outsourcing

The business process outsourcing service has evolved since the arrival of Industrial Revolution 4.0. It is the practice where a company contracts with an external service provider to perform vital functions. Emerging technology like automation, AI, and cloud computing have helped the BPO services in India to flourish. The opportunities have increased and helped businesses grow at a rapid speed.

What is Business Process Outsourcing?

An organization identifies certain operations which are not part of its core company values.  Since these processes do not differentiate much from another, the executives see little value in making their employees perform them. Instead, by outsourcing these tasks, the outcomes prove to be adequate. Processes like accounting or payroll become candidates for the BPO.

Today, many industries like banking, healthcare, IT, and finance utilize the BPO service. It offers versatile options to strengthen business growth in the market. You can benefit from reduced operating costs and efficiency of service.

Which Sectors use the BPO service in India?

  • Organizations that engage in BPO deal with two areas of work – front-end and back-end office functions. As part of BPO contracts, the company can outsource the entire functional work area to a single vendor. The common outsourced operations are as follows-
    • Administration
    • Marketing
    • Manufacturing
    • Accounting
    • Research and Development
    • Sales
    • Logistics and Shipping

Types of BPO Service in India Based on Vendor Location

  • Onshore BPO: The company outsources to another firm located in the same country.
  • Offshore BPO- The company outsources tasks to another firm whose location is in a different country.
  • Nearshore BPO- The company outsources to a premise in the neighboring country.

Why Should Businesses Outsource their Process?

The soaring demand for BPO services is due to low innovation cost, flexibility, and high speed. In this digital age, it is helping businesses gain from massive results.

As per the 2020 Global Outsourcing Survey done by Deloitte, companies using BPO can meet these objectives –

  • cost-saving perks as cited by 70% of surveyed enterprise leaders
  • flexibility, cited by 40% of participants
  • agility by 15%
  • speed to market by 20%

· access to tools and processes cited by 17% of the leaders

The benefits comprise the following –

  1. Financial boost – You can perform any business process at a low cost. This will benefit with tax-saving and others.
  2. Better flexibility – BPO contracts modify how you do the outsourced process. This way, the companies can react better to the changing business dynamics.
  3. Competitive gain – Your company can focus its resources on these operations. This way, it will establish an esteemed position in the market.
  4. Better performance – BPO providers are trained to complete their tasks with accuracy and speed.
  5. Access to innovation – They are aware of the advances in these processes. They can suggest which technologies to invest in, like automation, etc.
  6. More coverage- Organizations that need 24/7 call center operations can contract a BPO provider. They offer round-the-clock service as per the geographic location.

 

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For more details about BPO outsourcing, consult Kode Core for scalable services.

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