Business Process Outsourcing (BPO) is one of the fastest growing segments in the IT industry, growing twice the rate of the IT industry itself. More and more organizations worldwide are opting for BPO and reaping its benefits. The article discusses the key drivers which led to the growth of BPO over the decades. It examines the current status of BPO in India and the potential roadblocks undermining its growth.
BPO began to emerge in the late 1980s, but has really gathered momentum in the past few years. Since its inception, it has always been focused on the large corporations, a focus which has continued. Businesses began by contracting the standard business processes to companies, which had built specialized skills in the area of particular business processes. The companies providing support for these outsourced processes are known as Business Service Providers (BSPs).
The economic downturn and increasing competition are putting cost pressures on enterprises that attempt to optimize their internal operations by reducing the cost of transaction processing in non--core areas. Enterprises around the world are attempting to focus their investments on their core business processes and are increasingly looking at outsourcing non--core business processes, particularly back--office functions.
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