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Endeavour Info Consultancy Service
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BPO [Business Process Outsourcing] and Call Centers are the latest mantra in India today. As the current sources of revenue face slower growth, software companies are trying new ways to increase their revenues. BPO is top on their list today. IT services companies are making a quick entry into the BPO space on the strength of their existing set of clients.

Actually, setting up a call center is capital intensive. An ordinary BPO center that takes care of pure back office operation [e.g. payroll, data entry] will not be as expensive as a call center.

The list of functions being outsourced is getting longer by the day. Call centers apart, functions outsourced span purchasing and disbursement, order entry, billing and collection, human resources administration, cash and investment management, tax compliance, internal audit, pay roll...the list gets longer everyday. In view of the accounting scandals in 2002 [Enron, WorldCom, Xerox etc], more and more companies are keen on keeping their investors happy. Hence, it is important for them to increase their profits. BPO is one way of increasing their profits. If done well, BPO results in increasing shareholder value.

Benefits derived from BPO can be summarized as follows:
1. Productivity Improvements
2. Access to expertise
3. Operational cost control
4. Cost savings
5. Improved accountability
6. Improved HR
7. Opportunity to focus on core business

Revenue \ Year
2002
2003
2004
2005
2006
2006
CAGR
Offshore BPO Revenue
1,322
1,825
3,017
6,439
12,563
24,230
78.91
Indian BPO Revenue
912
1,205
1,961
3,928
7,412
13,811
69.35
Total BPO Market
110,167
121,687
131,171
143,090
157,033
173,070
9.45
CAGR in % 2002-07 Figures in $ million Source: Gartner Dataquest (May 2003)
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