India has emerged as a global hub of outsourcing in the last few years, with several multinationals setting up back offices and call centres here. This has created huge employment opportunities for young professionals.
While the BPO (Business Process Outsourcing) industry currently employs a large pool of youngsters, most still look at BPO jobs as a stopgap or interim option.
When one company, often a richer company from a developed nation, gets some of its work done by another comany, often a smaller company in a developing country, it 'outsources' that part of its work. The work could be anything, -- management of records, accounting, marketing of products and services, grievance handling, collections, etc.
The concept has taken off, considering it becomes a win-win situation for both companies -- labour costs being low in developing nations, the outsourcing company saves costs while the BPO earns profits.
Types of BPO
Captive BPOs: Captives are wholly owned subsidiaries of their parent company in the US. In India, GE and American Express were among the first few companies to set up captive facilities.
Third party BPOs: Where the work is outsourced to a third party vendor based in India. This reduces the risk and time of setting up operations and also leads to cost savings.
Joint venture: An innovative Joint Venture arrangement is Build, Operate and Transfer (BOT). Under this model, an Indian company helps set up Indian operations that the Joint Venture partner has the option to take over eventually. This benefits both parties.
Clients
- Sparsh
- Sitel
- Streams
