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BPO Outsourcing Case Study

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Introduction
BPO can be defined as “delegation of an IT-intensive business process to an external provider who owns, administers and manages it, according to a defined set of metrics” (Gartner 2004, quoted in Rouse and Corbitt, 2004).Indian BPO Industry in the financial year 2013-14 having an estimated revenue of $23.3 billion (Rs 1,42,048 crore) and a CAGR(2009-14) of 11.21%, leaping into a growth rate of 16.6% year-on-year and still considered as the world’s biggest business process outsourcing (BPO) centre, accounting for nearly 38% of the $53-billion global outsourcing market.
Gartner defines BPO as the delegation of one or more IT-intensive business processes to an external service provider, using a multiyear contract. Gartner’s definition of BPO includes CRM, back-office processes of finance, accounting HR and supply chain processes besides vertical industry-specific activities like mortgage processing. The very nature of BPO business is that it places a special premium on customer validation, operational stability and process expertise. …show more content…

(2006:881) explains that BPO is invariably cost effective when the external service is offshored which has been rightfully manifested in the recent times (Taylor and Bain, 2008:132);almost 55 per cent of Fortune 1000 companies are outsourcing some part of their business operations to other countries (Chanda, 2008:420)
As Greene (2006)reflects, transition economies around the globe are necessarily involved in BPO services; and interestingly more developing countries astutely aiming to become the desired destinations of BPO. India largely has been a top destination for these services (Kang, 2008). Consequently this has played an indeliable role in India’s emergence as one of the fastest growing economies in the world (Chanda, 2008:423). We also witness several studies have examined the role of BPO Industry in India (Taylor and Bain, 2005; Budhwar et al., 2006; Richardson and Belt, 2001; Malik and Nilakant,

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