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Career in Business process outsourcing


BUSINESS PROCESS OUTSOURCING:

Business Process Outsourcing (BPO) is a subset of outsourcing that involves contracting the operations and responsibilities for a particular business process to a third-party service provider.

Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. Although BPO originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services, as well.


WHAT DO THEY DO?

American businesses choose to outsource for many reasons. Some people believe that businesses are only after the tax break associated with outsourcing jobs, or “shipping jobs overseas” as some political ads claim. According to PolitiFact, this is a flawed notion. PolitiFact concedes that there are tax breaks for a company when it relocates, whether out of country or to a different state, but there is no specific tax break or loophole in the U.S. tax code related to outsourcing.

What is relevant to this argument, however, is that the U.S. corporate income tax is one of the highest in the developed world (39.1 percent). Therefore, U.S. companies benefit from outsourcing operations to countries with a lower income tax because businesses pay the rate of their host country. In addition, businesses cite many other reasons to engage in outsourcing:

  • To decrease costs: Outsourcing cuts down on costs for in-house labor, particularly for staffing and training, and for the work space to accommodate local employees. An outsourcing company physically located in a developing country leverages lower-cost labor markets. Finally, outsourcing enables businesses to use variable-cost models, like fee-for-service plans, instead of fixed-cost models that are required when retaining local employees.

  • To concentrate on key functions: Outsourcing allows businesses to hone in on their main offerings instead of company functions that aren’t directly tied to their core processes. For example, when outsourcing, the company won’t have to monitor the payroll accountant’s performance. Rather, it can focus its energies on highlighting its business differentiators and maximizing overall growth. In turn, these actions can boost a company’s competitive advantage and enhance its interactions with the value chain. Ultimately, the company can enjoy improved customer satisfaction and increased profits.

  • To achieve better results in noncore functions: Outsourcing companies specialize in what are considered noncore functions of other businesses, delivering world-class capabilities for its clients. In fact, an outsourcing company that invests in specialized processes and technologies can deliver cutting-edge breakthroughs to its clients. For example, a gaming design company may not want to pay for the latest payroll program on the market, but an outsourcing business that offers payroll services would likely make that investment to benefit its own performance, as well as that of its clients.

  • To expand their global presence: Some outsourcing companies can serve customers in multiple languages, around the clock, thus relieving the local company of the responsibility. Outsourcing companies can leverage their presence in multiple countries and keep the local company’s redundant divisions to a minimum. For example, WNS Global has 37 “delivery centers” across the world and specializes in business process management.

  • To enable flexibility: Companies that outsource their noncritical functions can act more quickly and more efficiently when managing the risks associated with introducing new products or services. They can also reassign their internal resources to more critical functions to help ensure better coverage and allocate responsibility.

  • To improve speed and efficiency: Companies that outsource processes are opting to let specialists handle those tasks, thus saving time, improving accuracy, and increasing their capacity. For example, a BPO that specializes in records management can automatically index documents, making them available for retrieval and keeping a company in compliance with legal requirements. This replaces manual data entry and storage.

Ryan Fitzgerald, owner of and realtor at Raleigh Realty, has extensive experience with BPOs. He says, “There are both pros and cons to creating an outsourcing process for your business. The obvious pros are that it saves you time and effort, which likely saves you money. There are only so many hours in a day, so you will want to focus the limited time you have on the work that makes you the greatest ROI (return on investment) on your best work.

“Another pro is that there is a good chance the person you're outsourcing your projects to is armed with a better skill set for the specific goal you're trying to accomplish. By outsourcing your work, you allow yourself the opportunity to be more productive and grow your business faster.

“One of the biggest cons is that you leave yourself exposed if you don't do the work yourself. What happens if the person you're outsourcing to moves away? What if they take your ideas and give them to other businesses you're competing against? We had an instance where we bought a lot of video marketing equipment and decided to outsource our projects to a video professional. That video professional is now reaching out to our competitors to ask if they would like the same work done. That means one of our competitive advantages is potentially lost if other real estate companies see the value.

“There are a lot of benefits to business process outsourcing, but make sure you keep an eye on how it could come back to hurt you as well.”


REQUIREMENTS;

There are various requirements for that they need to fulfil to pursue a career in being . The requirements are classified under three heads –

  1. EDUCATIONAL AND GENERAL QUALIFICATIONS:

For a BPO job, the basic educational qualification is Intermediate or Plus 2, for a nontechnical voice based BPO category job.

Good communication skills and knowledge, fluency and good accent and a presentable voice are a must.

Computer knowledge, the ability to browse the internet, ability to send and receive emails, good typing speed, expertise in M.S.Office is required.

Patience at taking calls and replying to queries, interpersonal skills and good listening skills and a presentable voice is a must.

At the same time if applying for a technical non-voice based BPO job some companies insist on B.Tech or B.Com Degrees as a basic requirement as the candidate has to handle matters relating to finance, accounting, purchase, sales and human resources.

  1. SKILLS:

There are 4 basic skills most outsourcing companies are looking for and screen applicants for:

  • English proficiency.

  • Learning ability.

  • Computer literacy.

  • Speed and accuracy.

A good blend of communication skills and technical competence: While most technical candidates have functional skill-sets, technical skills combined with rich communication skills will give a business process manager a competitive edge.

Embracing growth and learning: Given the pace of technological advancements, one needs to keep learning and be at the forefront of the learning curve. Today, IT has moved beyond maintenance and infrastructure, so that also calls for a need to understand.

  1. KNOWLEDGE:

Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors.

Although BPO originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services as well.

BPO is deemed "offshore outsourcing" if the contract is sent to another country where there is political stability, lower labor costs, and/or tax savings.


SALARY;

The national average salary for a Business Process Associate is ₹2,96,374 in India. Filter by location to see Business Process Associate salaries in your area. Salary estimates are based on 13 salaries submitted anonymously to Glassdoor by Business Process Associate employees.


Recent Salary Reports

Below are the most recent business process associate salary reports. Employer name has been removed to protect anonymity.


₹1,45,200

monthly

A Processing Associate in the New Delhi Area area reported making ₹1,45,200 per month

Job Highlights

New Delhi Area area

Full-time

 10000+ employees

Company - Public


₹15,000

monthly

A Processing Associate in the Mumbai Area area reported making ₹15,000 per month

Job Highlights

3-4 years experience

Mumbai Area area

Full-time

10000+ employees

Subsidiary or Business Segment


₹1,50,000

per year

A Processing Associate in the New Delhi Area area reported making ₹1,50,000 per year

Job Highlights

1-2 years experience

New Delhi Area area

Contract

 10000+ employees

Company - Public


₹2,65,000

per year

A Processing Associate in the Bengaluru Area area reported making ₹2,65,000 per year

Job Highlights

3-4 years experience

Bengaluru Area area

Full-time

 10000+ employees

Company - Public


₹14,600

monthly

A Processing Associate in the New Delhi Area area reported making ₹14,600 per month

Job Highlights

New Delhi Area area

Full-time

 10000+ employees

Company - Private


₹10,900

monthly

A Processing Associate in the New Delhi Area area reported making ₹10,900 per month

Job Highlights

1-2 years experience

New Delhi Area area

Contract

 10000+ employees

Company - Public


₹3,00,000

per year

A Transaction Processing Associate in the Bengaluru Area area reported making ₹3,00,000 per year

Job Highlights

Bengaluru Area area

Full-time

 10000+ employees

Company - Public


₹3,14,000

per year

A Business Process Associate in the Hyderabad Area area reported making ₹3,14,000 per year

Additional Pay

₹1.22M cash bonus

Job Highlights

Hyderabad Area area

Full-time

 10000+ employees

Company – Public


₹2,00,000

per year

A Processing Associate in the Hyderabad Area area reported making ₹2,00,000 per year

Additional Pay

₹5k cash bonus

Job Highlights

1-2 years experience

Hyderabad Area area

Full-time

 10000+ employees

Company - Public


JOB OUTLOOK;

The future of BPO is similar to that of many industries in that automation will be key. Many experts point to RPA as the main avenue through which BPO will change. For example, data entry work and image recognition can be automated easily. However, experts report that certain functions, like handwritten data and telemarketing, will resist automation.

All industries, including BPO, will likely leverage emerging technologies, such as cloud services, social media, and machine learning, to reduce costs and accelerate growth. One business model, the productized service, combines software and an outsourced staff member. An example of productized services is a package that bundles cutting-edge accounting software and accounting services, with both services billed to the contracting company monthly. Startups in particular are becoming more dependent on this type of service, so there is mutual dependence with BPOs.

The trend of providing and supporting improvements in social media management tools is expected to continue. Investments in cloud computing will also persist, as it becomes a more mature platform. In addition, BPOs will invest in diversifying their workforce. As BPOs get more competitive and are forced to lower their prices, they will move to lower-cost alternatives such as software automation and AI. With the threat of losing workers to AI and automation, governments and business leaders are educating them so they can meet the newer demand for highly skilled positions.


Frequently Asked Questions;

What is BPO? BPO stands for business process outsourcing where a company outsources a business process to some other company instead of keeping it in-house to save costs or increase efficiency. While the answer to this question is simple enough, it will help you score brownie points if you can give some information specific to the particular BPO you are interviewing with.


Why do you want to work at a BPO? This is another question through which the interviewer wants to gauge your fitment. Do some research about the industry, how it is booming and what the growth prospects are. Again, you will perform better if you mention reasons specific to the company, type of process, and industry that you have applied to.


What is the difference between inbound and outbound calling? Inbound calling refers to a call centre process where the calls are incoming whereas outbound calling is when the call centre employees make calls as well. Customer support is a good example of an inbound process whereas most sales calls are outbound.


Can you work night shifts? This is especially important in international BPOs as the clients you will have to call will most likely be located in a different time zone. You may well have to do a “graveyard shift” at some point or the other in your career. The best answer to this question is an emphatic yes; in fact, if you just cannot work night shifts the BPO industry may not be right for you.


Are you willing to relocate? This question helps the interviewer gauge your flexibility and eagerness for the job as well as helps them to map candidates with openings in different locations. The desirable answer to this question would be a “yes”. However, if you are genuinely not in a position to relocate then don’t lie as it may cause problems for you later. A vague answer to this question may make the interviewer doubt your commitment.


Why should we hire you? This question is a chance to display how your talents can fit well in the job role and the organization. Make sure you explain how different attributes of yours match with the job requirements and the company culture.


What are your major strengths and weaknesses? The only way to prepare for this question is to genuinely introspect and discover your strengths and weaknesses that have some relevance in the professional context. With weaknesses, you should try and be as genuine as possible as long as you talk about what you have done to overcome them.


What are your salary expectations? A standard answer to this question if you’re a fresher is to say that you want to be paid as per industry standards. It would be a good idea to go through the Monster Salary Index to negotiate your salary expectations. If you’re experienced, then a 20-30% hike on your current salary is the norm. You may choose to mention your expectations based on the market demand for your skills. Again, some research can really help with this.



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