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Business Process Outsourcing

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The Gartner Study ”The rise of BPO in 2000” has defined”Business Processes outsourcing”as delegating one or more IT intensive business process to an external provider who in turn owns,administers and manages the selected processes based upon defined and measurable performance metrics.

Business Processes outsourcing is not a new concept because companies have been outsourcing payroll and relevant services for many years.

However today it is a fast gaining acceptance in the business world as corporates the world over consider Business Processes outsourcing as a management tool with which to enhance corporate performance and to add to investor’s values and confidence.

The Gartner study has identified the following six categories for Business Processes outsourcing:

  • Administrative services

  • Finance and Accounting

  • Human resources

  • Payment services

  • Logistics and distribution

  • Sales and marketing and customer care.

According to the Nasscom – McKinsey Report 2002, the top 10 processes outsourced are –

  • Telesales / Telemarketing

  • Web Sales and Marketing

  • Database marketing / Customer Analysis

  • Benefits administration

  • Payroll services

  • Engineering and Design

  • Inbound call centres

  • Claims processing

  • Billing Services

  • Credit / Debit card services