BPO benefits i.e. benefits accrued as a result of outsourcing are numerous. BPO or outsourcing is advantageous as it links to shareholder value. Business Process Outsourcing is about optimizing business performance to attain value creation. There has been a tremendous upsurge in BPO and outsourcing industry in many developing countries like India because of their (BPO) expertise in reducing costs while increasing service quality.
Another great BPO benefit is that it helps companies to focus on core
areas. Companies generally outsource processes to reallocate
accountability and control costs. Thus the management is in a better
position to focus on core areas, and not keep itself engrossed in other
areas. Outsourcing also helps companies to avoid capital expenditures,
which is in particular important in non-core areas that may need new
systems and up gradation. By and large, companies only want to spend
money on core areas.
Reduction in costs is another BPO benefit. BPO provides quantifiable
benefits through improved efficiencies, lower overhead, reduced payroll
and benefit expenses, and fewer capital investments. Other BPO benefits
include assurance of best practices, skills, and technology. It is
important to note that BPO provides access to proprietary workflow
systems, process reengineering skills, and innovative staffing and
delivery models, coupled with world-class technology delivered by