Challenges Faced by BPO Firms in India
February 12, 2025
Warranty Management had been traditionally viewed by companies as a cost of doing business. The costs of warranty management were found to be costing between 4 to 5 percent of the total sales revenue of the company per annum and were considered to be the cost of providing customer satisfaction and as an opportunity to […]
Warehousing Costing methods vary with the business models. While some warehouses using common shared facilities may be worked up based on transaction costs, dedicated and stand alone facilities would be on a different costing model. In this section, we shall go through the cost elements of a warehouse project briefly. Warehouse Cost elements are primarily […]
What is Aadhar and why it can be Transformative to India? Not a day passes without Indians being reminded of the need to link their Aadhar number with the Banks and Mobile operators, in addition, to continue availing of the various governmental schemes. Indeed, Aadhar has become a household name in India as well as […]
Shift in the Process: A shift in the process is defined as a pattern in which seven consecutive data points appear on only one side of the mean. Statistical studies have shown that if the number of points on one side of the mean is less than 7 then it is not a non-random pattern […]
The legendary founder of Infosys, N R Narayan Murthy once when asked what his greatest challenge everyday was replied that putting mind over mindset is something that he consciously strives to do every day. This observation is very apt for all facets of business as the mindset of success is more important than having elaborate […]
In recent years, the term Business Process Outsourcing or BPO has gained prominence and the trend of outsourcing back office operations to centers in India and Philippines along with other countries in Asia has taken center stage. Often, we come across projections that show a greater growth in BPO with more western firms outsourcing to the Asian and other countries.
This module is intended to cover the BPO phenomenon in depth and provide the readers with a clear understanding of the dynamics involved as far as this phenomenon is concerned.
The various articles in this module would help the readers form a perspective of how the BPO sector works and the business drivers and imperatives behind the outsourcing phenomenon.
Since wages in India and other Asian countries are cheap in Dollar terms which mean that for the same amount of money that the firms are paying their employees in the west, they can get a highly leveraged amount of work when they outsource to India and other Asian countries.
Because of these factors, there are humungous benefits for American and European countries to outsource their back office operations to companies in the East. This can take the form of captive companies set up for this purpose or can be a turnkey outsourcing to a vendor. We will explore these themes in greater detail in the succeeding articles.
In conclusion, it would be fair to say that the BPO phenomenon represents a turning of the tide as far as perceptions about the East are concerned and it is to the credit of Indian and other Asian countries that they have delivered stellar results to their outsourcing clients in the US and in Europe.
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