INTRODUCTION

Business process outsourcing (BPO) is a form of outsourcing that involves the contracting of
the operations and responsibilities of a specific business functions to a third-party service
provider.

People usually misunderstand both the terms, namely BPO and Call centers. But, however,
there is a difference between BPO and Call Centers. BPO can be simply explained as: An
organization that is responsible for performing a process or a part of a process of another
business organization; outsourcing is done to save on costs or gain in productivity.

Whereas, a call centre performs that part of a client's business which involves handling
telephone calls. A call centre, for example, might handle customer complaints coming in over a
telephone.

Top BPOs and Business Process Outsourcing Companies are offering basic BPO Services,
BPO Solutions services, Accounting BPO Services, Tax Processing BPO Services, Bookkeeping
BPO Services, Chartered Accountants BPO Services, Medical Transcription BPO Services,
Legal Transcription BPO Services and all types of BPO and offshore outsourcing BPO Solution
from India.

The Business Process Outsourcing (BPO) industry in India is a relatively young and nascent,
a very much promising sector, less than a decade old in this business segment. Despite its recent
arrival on the Indian map to form a part of the export-oriented IT software and services
environment, the industry has shown amazing growth and future potential. The boom in this
segment has created an unparalleled opportunity in India. What began as an activity confined to
multinational companies, is today a broad based business platform backed by leading Indian IT
software and services organizations and other third party providers.

There are number of benefits the BPOs and Call centers provide:

Major cost reduction

Better Valued Client Services

Focus better on Value Added Services and business operations

Computerized working ( No messes with papers/notes )

 History of BPOs and Call center industry in India:

This industry in India is not a new one. It is a result of subsequent opportunities and
major events done as a part of outsourcing activities. The history of BPOs and Call center in
India can be looked at with reference to the following:

Airlines and entry of AMEX:

In the early 1975-80s several European airlines started using Delhi as a base for back
office operations, British Airways being one among them.

In the second half of the 1980s, American Express consolidated its JAPAC (Japan and
Asia Pacific) back office operations into New Delhi. This center was headed by Raman Roy, and
has been a source of several leading names in the Indian BPO Industry.

Third party BPOs and Entry of IT major:

In between 1990-2000, it was a period of BPOs and Call center industry to grow. In this
time, some of the major business houses really felt the need of something which can help them to
complete their tasks formally and in an organized way. As a result of which the big BPOs and
major outsourcing service providers came into limelight.

By 2002 all major Indian software organizations were into BPO, including Infosys
(Progeon), Inforlinx, HCL, Satyam (Nipuna) and Patni, Even international 3rd party BPO players
like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then
service arms of organizations like Accenture, IBM, Hewlett Packard, Dell also set up shop in
India.

Emergence of Rural BPOs and Call centers in India:

Booming India Inc has led to skyrocketing real estate and infrastructure costs in Tier-1
cities. BPO industry has thrived all these years because of its ability to deliver services at a low
cost. Increasing infrastructure costs, real estate costs, and salaries have raised BPO costs
significantly and as a result Indian BPOs in Tier-1 cities are looking at Tier-2 and Tier-3 cities for
operation.

Also, few entrepreneurs who had a vision of bringing the rural India into the mainstream
of knowledge economy have found an opportunity here - setting Rural BPOs. The major hurdles
that these BPOs faced are quality man power. As a result these rural BPOs have remained
targeting low end jobs like data entry, job work etc...

Background of BPOs and Call center industry in

India: a focus on the size, worth and growth
Despite its recent arrival on the Indian map to form a part of the export-oriented IT software
and services environment, the industry has shown amazing growth and future potential. The
industry has been growing very rapidly. It grew at a rate of 38% over 2005.

Important business hubs of this industry in India are Bangalore, Hyderabad, Kolkata,
Mumbai, Pune, Chennai, Ahmedabad and New Delhi.

For the FY06 financial year the projections is of US$7.2 billion worth of services provided
by this industry. The base in terms of headcount being roughly 400,000 people directly employed
in this Industry.

The global BPO Industry is estimated to be worth 120-150 billion dollars; of this the offshore
BPO is estimated to be some US$11.4 billion. India thus has some 5-6% share of the total
Industry, but a commanding 63% share of the offshore component.

The U.S $7.2 billion also represents some 20% of the IT and BPO Industry which is in total
expected to have revenues worth US$36 billion for 2006. The headcount at 400,000 is some 40%
of the approximate one million workers estimated to be directly employs in the IT and BPO and
call Center sectors.
Table 1:Global BPO market By
industry

Here are some statistics which can give

Industry %
much deeper insight into this industry:
Information Technology 43
Table 2:Global BPO market By
Financial Services 17
Geography
Communication 16
(Telecom) Country %

Consumer Goods/ 24 United States 59

Services/Manufacturing
Europe 27

Asia-Pacific (incl.
9
Japan)

Rest of the World 5