It’s very important for the candidates to know about the industry they want to work with. We did our research about BPO industry and found very important details to be aware of.

This article will help you to understand basics of the fastest growing industry in India. We have tried to cover all important details required in a very simple language.

We hope this information will be useful and helpful for people looking for an opportunity to be a part of the Business Process Outsourcing industry.

1Definition of BPO

Let’s have a look at what definition we found on the internet about BPO.

Business Process Outsourcing (BPO) and Knowledge Process Outsourcing is a kind of outsourcing in which the company outsources a specific activity/process related to its business to a third party service provider.

E.g. of the process could include payroll, HR, technical support to the customers.  BPO allows a company to save cost and also focus on the core activities.”

Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party provider.

BPO services include payroll, human resources (HR), accounting and customer/call center relations. BPO is also known as information technology enabled services (ITES)

A method of subcontracting various business-related operations to a third party. When business process outsourcing began, it applied chiefly to manufacturing entities, such as soft drink manufacturers. However, it is now applicable to the outsourcing of services.

Business process outsourcing is known as offshore outsourcing if the outsourcing is sent to another country.

It is known as nearshore outsourcing if it is done with a neighboring country. Another form of BPO is known as information-technology-enabled service (ITES).

Let us talk in brief about Business Process Outsourcing. 

BPO is the act of transferring some of an organization’s repeated non-core and core business processes to an outside provider to achieve cost reductions while improving service quality.

Because the processes are repeated and a long-term contract is used, outsourcing goes far beyond the use of consultants. If done well, BPO results in increasing shareholder value.

The main difference between BPO and more traditional IT outsourcing is that BPO offers companies a way of achieving transformational outcomes much more quickly. In a typical BPO contract, a service provider takes over a specific corporate function.

Effective BPO encompasses much more than just changing who is responsible for performing the process. In BPO, the outside provider not only takes on the responsibility to manage the function or business process but also re-engineers the way the process has been traditionally done.

The most common business process that gets outsourced is call centers. Call centers and Help Desks of many multinational and fortune 500 companies are being outsourced to low waged, English speaking countries such as Philippines and India.

Countries like India with vast IT human resources are also attracting outsourcing from American IT/Technology companies to outsource their IT Help Desks.

Many of these help desks are state of the art with latest Help Desk software and help desk hardware with technical savvy IT graduates behind them answering your questions.

2History of Business Process Outsourcing

Do you know that the idea of outsourcing was started in 1962 by Ross Perot?. He founded Electronic Data Systems.

Electronic Data System would tell a prospective client that you are familiar with designing, manufacturing and sell furniture, but we are familiar with managing information technology.

By looking at the history of outsourcing we can sure that the industry has been for a long time. Business process outsourcing is one of the most famous parts of the outsourcing industry. Most of the outsourcing is done for the call center industry.

3Industry size of BPO

BPO Services Global Industry had added up to $140,316.1m in 2016 and is relied upon to become advance by 2021.

India has incomes of US$10.9 billion from seaward BPO and $30 billion from IT and aggregate BPO (expected in FY 2008). India in this way has some 5-6% offer of the aggregate BPO Industry, however an instructing 63% offer of the seaward segment.

This 63% is a drop from the 70% seaward offer that India appreciated a year ago: regardless of the business growing 38% in India a year ago, different areas like Philippines, South Africa, and even Kenya have risen to take an offer of the market.

There are 865 firms in the BPO/BPM segment in India as of March 31, 2014, with 0.97 million specialists with income of US$ 20 billion.

By the year 2016, the BPO Industry in the Philippines will utilize 1.2 million laborers with $25 billion in incomes.

The South African call focus industry has developed by roughly 8% every year since 2003 and it straightforwardly utilizes around 54,000 individuals, contributing 0.92% to South Africa’s total national output (GDP).

China is additionally attempting to develop from a little base in this industry. Be that as it may, while the BPO business is relied upon to keep on growing in India, its piece of the overall industry of the seaward piece is required to decay.

Imperative focuses in India are Coimbatore, Bangalore, Gurgaon, Chennai, Kolkata, Mumbai, Pune, and New Delhi.

The Association of Southeast Asian Nations (ASEAN) nations, alongside the People’s Republic of China and India—referred to by and large as ACI nations—are probably going to see administrations like BPO figure unequivocally in their economies over the medium term.

Administrations exchange among ACI nations has been developing at an extremely quick rate over late years, notwithstanding beginning from a generally low benchmark.

In spite of the fact that information is rare and must be translated with alert, an examination of connected administrations division strategies in the area proposes there is much policymakers can do to escalate this procedure, and increment the pace at which the change to an administration economy is occurring.

Eastern Europe is likewise a rising BPO goal. McKinsey and Company announced that in 2010, 33,000 occupations were moved to Eastern European nations.

While the general size of the business and the quantity of engineers in Eastern Europe is lower than India, the information of European dialects like French, Spanish, German, and Italian by numerous Eastern Europeans, and additionally the general high caliber of training in these areas, permits the BPO business in this district to keep on growing.

For instance, the district has an expected 17.2 million individuals with a tertiary instruction, contrasted with 13.6 million in India, settling on it an appealing decision for BPO, particularly if more specific tasks are to be outsourced.


The purpose of this post is to educate candidates and help them to know about business process outsourcing industry.

The post will give you more idea other than what you can find in the online world.

We would like to hear your feedback on the same which will help us to improve our services and make us more candidate focused.

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