And they can redirect these funds for their core activities.
Also outsourcing to developing countries proves to be very cost saving for these companies.
For example TCS one of Target’s BPO partners supports the retailer’s operations from its delivery centers in Uruguay and Chile. What formal and informal institutions may accelerate or constrain the growth f the Indian BPO industry? On Ethics: As CEO of any leading Indian BPO providers, how do you answer a US reporter who asks, “Many American believe outsourcing IT/ BPO work has destroyed a lot of US jobs. I believe American corporations are not destroying the US jobs by outsourcing their IT services.
I believe the US companies wants to provide India the opportunity to provide services globally at a lower cost.
This fragmentation of activities speeds up the whole process and is very important in cases like customer service.
When you outsource one of your business activities to a BPO, you are insured of exemplary services provided by skilled manpower.
Did you know that in the business world outsourcing is a 6 trillion industry? It is one of the biggest service industries in our global economy.
In fact, in India, the BPO sector has seen tremendous growth since the early 2000s.
The companies do not part with their core competencies, they maintain all their focus on these like manufacturing, marketing etc.
However non-core services like after sales service, customer relations, supply chain management, real-time accounting etc. Outsourcing non-core activities to a BPO allows a company to be far more flexible.