Business Process Outsourcing gives tremendous help to the companies to concentrate more on the core areas of their business. The most important factor behind the growth in the BPO market world wide today is an increase in the number of enterprises that are reviewing their internal operations in an attempt to fully understand their true core competencies. In the process they are able to focus more on their core competencies. Business Process Outsourcing gives more freedom to the management to focus more time, energy, and resources on building the company's core businesses. It is because the BPOs assume full responsibility for managing the day-to-day back-office operations.
Once outsourcing of certain processes take place it becomes easier for
the company to compare and evaluate the efficiency and effectiveness of
services that are being delivered from outside and inside. This
decision-making process often includes an evaluation of the cost of
owning technology - with its associated support costs, that are not core
to the enterprise (HR is one such example). This trend is leading to an
increased keenness to outsource processes that are considered non-core,
yet critical activities. These critical activities include claims
administration, HR services and payment services.