Business Process Outsourcing help companies attain an invincible position in the service market and provoke high profits by enhancing their business operations. BPO is a tool that lets the enterprises to sustain in the cut throat competition by holding their customers and delivering high rate of customer satisfaction. The advancements in technology and infrastructure have made it easier. Consequently India’s economy has raised since the establishment of BPO firms. India in the recent years has exhibited huge growth in the areas of communication, power and software developments.
Correctly estimating the demand dynamics is very important for any business to remain afloat in the long-run. Customer preferences have an incessant tendency to change over time. BPO equips organizations with, extremely responsive radars to address this problem and thereby secure a competitive extremity over peers.
Often the outsourcer can bring tangible welfares simply not available inside the company. The capability to have universal support, the minimum amount of resources to deliver in depth expertise, the power to extend fixed costs across multiple clients, up to the minute awareness of advanced technologies and suitable business innovation experience are required.
Outsourcing can be used as a way of removing legacy systems and technologies while in house resources are concentrated on developing the new world. It can be a way of assuring the excellent operation of the utility aspects of IT provision. At the other end of the scope, a strategic partnership may be formed on the basis of some kind of value proposition to jointly identify and develop new technology-based business opportunities.
It is a reality that India has been in the leading position of the BPO or service revolution and its firms have gathered a huge chunk of the services market. In spite of that, the organizations that run in the BPO space in India face their own challenges as far as the conduct of business is concerned. For instance, one of the leading challenges that are faced by the BPO firms in India is the lack of stability and the chaotic way in which infrastructure and logistics management is concerned.
The fluctuations in the form of strikes and shutdowns take a toll on the active process of the BPO organizations. Because the sector has the necessity to work 24/7, it cannot afford any disturbance to its service. Hence, the move by the BPO firms to persuade with the government in granting them the essential service tag so that they are not subject to the instability and can carry on their operations.
The next set of challenge deals with the way in which the BPO sector has grown in India is predominantly by doing low end work which is swiftly being threatened by new entrants. This signifies that either the BPO companies will slash their costs of resources or will move to higher end work. In short, these are the few challenges that the outsourcers in India will be facing in the future as far as its operations are concerned.
On the outer view, there has been a sad and cry over bpo outsourcing to India in the current presidential campaign in the United States. This means that the BPO sector in India has to be more careful to disprove the charges made by the politicians in the US and the UK. The point here is that the BPO sector must not become a scapegoat in times when the US and the UK are in economic decline and so there needs to be aggressive lobbying taken up externally to counter these perceptions.
Though outsourcing comes with its own set of risks, the benefits of outsourcing are far greater than the challenges. By observing precautions while conforming the outsourcing agreement, learning from past failures and choosing an established and experienced service provider, make the outsourcing venture successful.