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Business Process Outsourcing is an important component of Business Strategy of major organizations worldwide. BPO is positively related to the quest for more efficient organizational designs: cost reduction, productivity growth and innovative capabilities. Hence, BPO is important source for strategic advantage. Many recent market research surveys have indicated the CEO's around the world across all the companies feel that BPO is key strategy for survival in today extremely competitive business environment. BPO offers many benefits. It allows the organization to concentrate on their core activities by releasing resources which have constrained in non-core activities. It helps organization cut costs by reducing HR Costs - salary bills, perks, employee benefits, administration overheads. The client only has to pay for useful quality work duly completed by BPO. It helps to reduce recruitment and training expenses. It helps Improve quality of service and productivity by bringing greater accountability and transparency in production standards. It enables an organization to get increasing volume of paperwork and routine administration work done quicker and at significantly lesser cost. BPO also offer 24 X 7 X 365 service availability which is very important in customer service related operations.

avatar Editor answered 11 years ago

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