Direct and Indirect Benefits of Business Process Outsourcing on

Journal of Labor Research, 2006

We identify managerial challenges and opportunities faced by business process outsourcing (BPO) firms in India by interviewing 28 executives in lower (n = 10), middle (n = 11), and upper management (n = 7) in 15 BPO firms. Content analysis of the responses revealed human resources and organization-related challenges as the most critical issues. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis uncovered future opportunities, e.g., Knowledge Process Outsourcing. Secondary data, from four global research agencies and a national trade association, supported our findings. Organizational changes to address challenges and to exploit opportunities are explored.

Issues In Information Systems, 2008

India has emerged as the 'nerve-centre' for Information Technology-Business Process Outsourcing (IT-BPO) with over two-third of the Fortune 500 and a majority of the Global 2000 firms now sourcing global service delivery from India [32]. The top four Indian IT-BPO companies have attained global stature and now have a combined market capitalization of $72.67 billion, which dwarfs many of their US-based competitors. The purpose of this paper is to analyze the competitive advantage that Indian IT-BPO companies have over similar U.S. companies. Extensive research was conducted using both public disclosers provided by these companies to the Securities and Exchange Commission and the public data available on the Internet. The challenges faced by the Indian companies have been enumerated and implications for US based companies and our educational system are discussed.

In order to improve the economy of any nation and to solve the problem of unemployment of the third world countries, there is the need to create more employment and job opportunities. When the peoples are employed, their earnings will be increased resulting into increased purchasing power and this will enable to mobilize more savings. For a land lock state like Manipur with less industrial growth, there is a scope for employment generation and earning foreign currencies through the establishment of various service vendors of Business Process Outsourcing. Despite having a huge pool of talents that can cater to the needs of clients and consumers, Business process outsourcing in Manipur is quite young. This may be due to its poor infrastructure, connectivity, power issues and law and order situation, etc. In the recent past, some of the private IT firms have started providing IT-enabled Services to various clients of the country as well as other foreign countries. These start-ups cater to the needs of the clients and customers as service providers in the areas of data entry, There is lack of much interest from the side of the state government. One thing that policy makers of the state must understand is that State's revenue from BPOs can exceed far than that of state's export revenue. Therefore, there should be priority towards the growth of service sector as manufacturing industries will be difficult to establish successfully. The problems of unemployment of educated youths, poor economy of the state, brain-drain, etc. can be solved if we give more focus on the development of IT Enabled Service-BPOs in the state.

Business Process Outsourcing-Chapters 1&2and References, 2017

ABSTRACT The study evaluated Business Process Outsourcing(BPO): A Panacea For Organizational Effectiveness in Zenith Bank Plc. The objectives of the study were to assess the nature of relationship between business process outsourcing(BPO) and competitive advantage, to ascertain the extent to which business process outsourcing affect organizational performance and to ascertain the extent to which banks apply business process outsourcing. The population of the study was represented by total workforce of Zenith Bank Plc in six of its branches in Lagos Island. The population size was 340.The sample size was determined using Taro-Yamene’s Formular and it was 184.The actual sample size based on those that completed and returned their questionnaires was 172.The research design was purely survey and descriptive in nature.A random sampling technique was adopted so as to allow all respondents actual chance of participating in the study. A structured questionnaire was designed and used to elicit information from the respondents. The use of structured questionnaire(research instrument was necessitated by the fact that it generates high response rate and it has ability to reduce incidence of bias. The reliability of the research instrument was tested using spearman rank order correlation and Cronbach’s alpha. The Cronbach’s alpha of 0.73 was obtained indicating that the instrument is valid and reliable. The data obtained through the use of research instrument were analyzed using frequency and percentage. The hypotheses were tested using Pearson product moment correlation coefficient, regression analysis and chi-square(X2).Specifically, SPSS version 22 was used in analyzing the data. The findings established were that there is significant relationship between business process outsourcing(BPO) and competitive advantage., there is significant effect of business process outsourcing(BPO) on organizational performance and banks apply business process outsourcing(BPO).It is therefore a known fact that the importance of outsourcing in organizations and especially the banks can not be emphasized. The review of extant literature revealed that the banks both in Nigeria and abroad have adopted business process outsourcing with a view to reducing cost ,improve their services and gain competitive advantage. Zenith bank in which the study was conducted adopts business process outsourcing(BPO) as a strategy like GT-Bank Plc and First Bank Plc in which earlier studies were conducted. Based on the data analysis and findings established it can be concluded that business process outsourcing(BPO) can facilitate organizational effectiveness. It can also be concluded that BPO can be used a tool for enhancing performance of organization and that Nigerian Banks apply BPO. Based on the conclusions drawn we offered the following recommendations: organizations including banks should use business process outsourcing as a strategy to achieve better corporate bottom line, organizations should see reason to outsource some of their back office and front office functions so as to reduce costs, improve quality of their services and outperform their competitors in the same industry , in this period of recession and for the Nigerian banks to put a stop on sacking of their staff business process outsourcing(BPO) comes in handy and should be upheld as a tool for cost reduction.

Journal of Entrepreneurship & Management, 2022

The present study focused on the Business Process Outsourcing (BPO) industry in India. The BPO is a service industry. It is contributing to a great extent to the Indian economy, as per the Indian Brand and Equity Foundation. The major research question is how and why the BPO industry has emerged in India, a developing country. A descriptive research analysis has been conducted in this research paper. It is found that the Indian workforce is laborious, efficient, and proficient in speaking English to manage businesses around the world. So it is easier to attract the BPO industry to India. It is also observed that the workforce in India is available at a cheaper cost in comparison to other developed countries in the world. So it provides cost advantages to those companies who want to outsource them. The other reason may be the liberalisation of government policies in India for investment by companies around the world.

Even though offshoring significantly affects a host country, most research on offshore production still focuses on its demand side. In this paper, we introduce the factors that affect the performance of Indian suppliers in an outsourcing relationship, popularly called the Business Process Outsourcing (BPO) firms. In the absence of a sound theoretical framework on BPO firms, we combine suitable elements from the model of an intermediate input producer of the Aghion et al (1999) endogenous growth theory, Arora and Asundi (1999) software outsourcing firm model and the Antràs (2005) internalization theory. By applying these models, we support an econometric framework of firm performance comprising of factors crucial for the BPO industry. Our empirical results indicate that in 2001-02, prior experience, the number of office locations, funding from a venture capitalist, the number of markets and the number of clients had a positive influence on a BPO firm"s performance while information security certifications negatively affected a supplier"s performance.

Ekonomika, 2015

The purpose of this paper is pointing out the relevance of outsourcing of business process project and strategic option for improving enterprise efficiency and realizing the competitive advantage. The aim of the paper is designing a conceptual model for implementation of BPO concept, which contains four generic steps: establish a business process outsourcing team, conduct a business process analysis, determine BPO possibilities, develop and present the business plan of BPO. The proposed model helps the clients and service provider organizations in understanding critical steps in realizing the intended BPO project.

2004

Outsourcing decisions are not, technically, irreversible. But in practical terms the organizational disruption and financial costs of bringing services back in house ("backsourcing") mean that few organizations revert, even when quite dissatisfied with an arrangement. Instead, organizations typically seek to move to another outsourcing arrangement, that is sometimes less attractive than the original in-house delivery. Preliminary evidence from studies of business process outsourcing (BPO) experiences, like those into IT outsourcing's success, suggests that only a minority of organizations report their BPO arrangements as satisfactory, implying that many are caught in this "can't go back" bind. In this paper the authors examine two organizations contemplating the adoption of BPO, and consider their expectations and experiences in light of existing empirical literature. The paper concludes with a set of principles to assist organizations to avoid BPO failure.

This paper attempts to explore the problems of outsourcing industry with specific focus to out bound call centers and provide a remedial solution to the problem by which this sector can play an effective role in the IT industry of Pakistan and in turn the economy as a whole. Business Process outsourcing has become a multi billion dollar Industry globally it has brought visible benefits to the economy of the country and generating tremendous employment opportunities. Over the last couple of years, the worldwide business process outsourcing market has undergone rapid transformation. Continuing pressure on cost bases at a time of growing competitiveness is driving companies to look at offshore outsourcing as a strategic alternative. Many countries are demonstrating the benefits brought by business process outsourcing. Access to global talent, economies of scale, process engineering and enhancements, increased profit margins and improvements in quality are some of the gains that companies and in turn countries have realized. Although outsourcing has bought visible benefits with employment opportunities to Pakistan also, however these benefits do not come without a cost.