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Abstract

"Outsourcing is nothing, but purchasing service from an outside vendor rather than using internal resources."

The beginning of new millennium is witnessing an info-tech revolution called IT-enabled
Services (ITeS). These are business processes and services delivered over networks or the Internet to a wide range of business areas and verticals. The technology is used as a tool to provide these services, of which most of the functions are human intensive. Due to the human intensive nature, these processes and services are outsourced in order to derive cost and advantage without sacrificing quality and efficiency.

In recent years, businesses have outsourced their data centers, application management activities, and finally, non-core, transactional processes to reduce costs and improve their ability to focus on more strategic issues. Today, companies are recognizing that they need to take advantage of low-cost outsourcing options wherever they may be in the world. Many are flocking to foreign shores for high-quality, cost-effective outsourcing services. While India is the reigning offshore capital for technology capabilities, any country with the right conditions, including but not limited to a large population of skilled workers with the requisite language skills, is a potential sourcing option.

Now, thanks in part to the economic benefits of offshore sourcing options, the field of business process outsourcing (BPO) has emerged, allowing a company to outsource an entire process or business function - such as Human Resources, Training, Call Centers and Finance & Accounting - to a third-party service provider. Utilizing global sourcing, companies can outsource many business processes for a fraction of the cost of running the same functions in their home countries. In addition to cost savings, companies can benefit from efficient, high-quality and repeatable processes that generate business performance improvements.

India is a country in which the BPO is making waves in the industrial landscape. It is one of the most upcoming sectors after the IT boom. Now the country gradually turned itself into a hub center of IT and ITeS. However, each and every country desires to outsource from India. The BPO sector contributed in the overall growth of export, employment generation, transport, catering, training, which in turn are generating substantial tax revenue.

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* Contributed by: -
Sheeba Rehman,
Sr. Lecturer - Management,
IMS, Noida.
Article posted on November 2, 2008.