BPO stands for Business Process Outsourcing but in current business scenario it is becoming increasingly difficult to define the BPO. This is a services-based industry and encompasses a wide variety of activities such as human resource, accounting, financial research, marketing, sales, legal work, logistics and so on, and services are required to be delivered as per customer's demands. Major corporations in the US and Europe are outsourcing their back office operations to BPO Centers in lieu of getting best services and best customer-retention.

The BPO market can be broadly divided into three categories: customer care services, transaction services, and knowledge-based services. Because of ever evolving technology, labor arbitrage and process efficiencies the already established customer care and transaction services continue to grow rapidly but the new, diverse knowledge-based BPO services is emerging fast through access to skilled professionals and technological advancements.

Main reasons for outsourcing

BPO opens cost reduction opportunities

provides access to special enterprise

Provides flexibility to focus on the core

business.

Increases the organizational flexibility by increasing the speed of business processes. Provides resource related reasons{relieve resource constraints, reduce IT staff and augment IT staff)

Telecom and general infrastructure, domain knowledge & expertise, business competencies, and a dedicated group of highly skilled and trained professionals are required to provide the best quality outsourcing services to clients.

Many factors contribute to the benefits of outsourcing services to BPOs, significant factors are:

BPO Professionals are skilled: Employees are trained to deliver the services as per clients' requirement. They are available for all kinds of telemarketing to retain their existing customers and build new customer-base for their client. For example telemarketing executives working in BPO are trained to retain their existing customers and build new customer-base for their client and concentrate on such specific jobs only.

BPO Centers have the right infrastructure: The most important asset after human resources is the right infrastructure be it the desired equipments, telecom or general infrastructure, modern BPO centers have the all the necessary infrastructure. Companies don’t require them to be equipped with all the facilities for related work.

Boosts efficiency: There are certain processes in every organization which are both necessary but contribute little in terms of productivity given the time spent on these. Most of these processes require special skills and expertise and are highly time-consuming and businesses find it difficult to manage those processes without losing their concentration on the core processes. Business process outsourcing helps because it's like getting it done by the experts. It not only boosts efficiency, but also enables significant time savings. BPO contributes to a company’s flexibility since company is able to focus on its core competencies.

Reduces Costs: Cost reduction is one of the prime reasons behind business process outsourcing. Outsourcing the routine business processes to organizations with comparatively lower cost base has the potential to substantial cost reduction. Business that choose outsourcing do not have to spend top dollars in recruiting and managing human resources, something that enables instant cost savings.