2. A brief about business process outsourcing processes
The business process outsourcing (BPO) processes are fast becoming an integral part of
business world. BPO is a line of business where a company subcontracts some of the
business functions or process to third-party service providers. These service providers are
known as BPO companies or information technology-enabled service provider (ITeS)
companies. Generally, support functions like finance and accounting, purchasing and
disbursement, human resource management, pay roll, cash and investment management,
billing and collection, order entry, etc. are outsourced to BPO organizations. The
outsourcing represents an organization’s decision to externalize an activity or process.
The outsourced processes are classified into two types namely data and voice
processes. In a voice process, the customer calls a full-time equivalent (FTE) and gets the
work done (enquiry, clarifications, etc.). The call is kept on hold if all the FTEs are busy
handling other calls. Generally, an automatic call distribution system monitors the calls
and a call is routed to the FTE who is free for maximum time compared to others. In data
processes, the customer sends orders (sheets, mails, forms, etc.) through internet to the
BPO companies and gets the processing done.
The outsourcing of processes to service providers located outside the country is
known as offshore outsourcing. Several critical factors have enabled the growth of
offshore outsourcing. Telecom deregulation and increase in bandwidth have improved
the quality and stability of communication links at lower cost. The availability of
talented, well-educated human resources at lower cost is another reason for rapid
growth in offshore outsourcing (Tas and Sunder, 2004).