Business Process Outsourcing has been the latest mantra in India today. Actually, setting up a call center is capital intensive. An ordinary BPO center that takes care of pure back office operation [e.g. payroll, data entry] will not be as expensive as a call center.
The philosophy behind BPO is specific, do what you do best and leave everything else to business process outsourcers. Companies are moving their non-core business processes to outsource providers. BPO saves precious management time and resources and allows focus while building upon core competencies. The list of functions being outsourced is getting longer by the day. Call centres apart, functions outsourced span purchasing and disbursement, order entry, billing and collection, human resources administration, cash and investment management, tax compliance, internal audit, pay roll...the list gets longer everyday. In view of the accounting scandals in 2002 [Enron, WorldCom, Xerox etc], more and more companies are keen on keeping their investors happy. Hence, it is important for them to increase their profits. BPO is one way of increasing their profits.
Benefits derived from BPO can be summarized as follows:
- Productivity Improvements
- Access to expertise
- Operational cost control
- Cost savings
- Improved accountability
- Improved HR
- Opportunity to focus on core business
Outsourcing is not new - it has been a popular management tool for decade. One can safely say outsourcing has evolved :-
- 1960's - time-sharing
- 1970's - parts of IT operations
- 1980's - entire IT operations
- 1990's - alliances/tie-ups
- 2000's - IT-enabled services
India has one of the largest pool of low-cost English speaking scientific and technical talent. This makes India one of the obvious choice to outsource to. Dell, Sun Microsystems, LG, Ford, GE, Oracle all have announced plans to scale up their operations in India . Others like American Express, IBM and British Airways are leveraging the cost advantage India has to offer while setting up call centres. Several foreign airline and banks have too set up business process operations in India . Indian revenues from BPO are estimated to have grown 107 per cent to $ 583 million and this particular area employs 35,000 people in the year ending March 31, 2002.
Many European and US companies have realized that they should focus on their main business and outsource their Human Resource Department, accounting department etc. Bingo! it is here exactly CapStone BPO fits in! Today US corporations have embraced BPO wholeheartedly.
We at CapStone BPO provide you these services. We are partners with the leading call-centers in India and we can offer you a wide range of services.
