BPO is a segment of outsourcing, which consists of subcontracting the business processes of an organization to a third-party vendor that has expertise in required domains. It is an effective strategy of delegating one or more business activities to external companies (vendors), which, in turn, administer and manage the selected activity, based on defined and measurable performance criteria.
“Outsourcing of business processes has enabled multinational institutions to reduce their turn-around time through adoption of lean business process models,” says Faisal Ghaus, Vice President of TechNavio Research.
“BPO companies help their clients achieve better turn-around and efficiency by adjusting time zones and shifting patterns in such a way that the client's problems are resolved before the start of his customer's day.”
The integration of IT outsourcing and BPO, termed as 'neo-sourcing', is an evolution of the BPO models offered by outsourcing companies. It is a combined management of back office operations and technology leading to process re-engineering leading to business transformation and optimization. Various benefits include process optimization, cost reduction, access to global best practices, improved productivity, and better employee morale.
To define the market conditions in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.