What Is Business Process Outsourcing?
Business Process Outsourcing (BPO) has pervaded all sensibilities and almost every corner of the world. According to a recent market study, the training outsourcing industry alone is expected to grow to around $20 billion over the next few years! Outsourcing has had a major impact over the learning and training markets. With e-learning and technology aided training covering new grounds every day, business process outsourcing is set new benchmarks every so often.
A fairly immature market to date, the BPO industry is still growing. While in countries like India, offshore outsourcing has been a front runner and contributor to the nation's economic and infrastructural growth, in other countries like China, Philippines, and Bulgaria, call center outsourcing is in its nascent stage.
Let's take a closer look at the market for call center outsourcing and other outsourcing businesses in these markets. In today's world, the term "offshore outsourcing" really just means 3 things. The first thing is that outsourcing refers to the conventional use of vendors to process non-core businesses. Secondly, it means that training technology now gets outsourced to provide better services, and facilitate better learning tools such as learning management systems or LMS, development of e-learning content, integration of content, and hosting multifaceted LMS and Learning CMS softwares and applications. And thirdly it refers to business process outsourcing or BPO. This usually involves technical help desks, vendor management, virtual classrooms, administrative services, and other services such as KPO and LPO.
Today, India earns revenues of more than $6.4 billion from offshore outsourcing and $36 billion from IT and complete BPO business. Interestingly enough, India has also managed to capture around 5%-6% of the total BPO market share in the world, and has laid claim to a formidable 63% share in just the offshore segment alone. Though 63% is a slide from the 70% offshore market share it commanded last year. Still a leader of the BPO pack. India also witnessed an industry growth of 38% last year while other emerging destinations such as Eastern Europe, Philippines, and South Africa are now in the foray to capture some share of this market. Increasing the number of player in the call center outsourcing business is a relatively new entrant - China. Though China is still an infant with a very small market base, it is growing dramatically, probably giving Indian BPO players sleepless nights! But thought the BPO industry in India is expected continue in growth, the India will have to forego some of the offshore pie is currently has. According to the outsourcing watch dog in India, BASSCOM, the Top 5 Indian BPO companies are 24/7 Customer, WNS Global Services, Wipro BPO, HCL Technologies BPO, and Firstsource Solutions. The Big 5 Indian BPO companies according to UK are TCS (Tata), Wipro, Infosys and Satyam Computer Services and HCL Technologies. Today, the global BPO services Industry is estimated to be around $120 - $150 Billion in worth and the offshore BPO market is expected to be around $11.4 Billion of the over global BPO Industry. So if you are still not sure what is business process outsourcing, I sure hope you can see it's potential for your business.
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