The two different colors of outsourcing prism are KPO [knowledge process outsourcing] and BPO [business process outsourcing]. There is no doubt about the fact that by the basic nature, both are the same.
In the present times, both the KPO and BPO are very effective as far as cost curtailment is concerned. These organizations focus on the core competencies and the global industries take the full advantage of these workhouses. The fact remains by BPO; we mean to assign the processes or business activities like accounting, finance and business activities to the providers of the service of third parties.
The fact remains when the BPO gained financial sufficiency; it was actually restricted to the manufacturing industry. KPO is much related to the functions like information management and these are related to the external agencies. One can also check the dissimilarities between the BPO and KPO. Both these offer wide number of services.
As per the recent survey conducted, eighty percent of the firms of USA and Europe have ranked India as the number one destination for the outsourcing purpose. As per the report of NASSCOM, fifty percent of fortune 500 companies prefer to outsource software development to the Indian outsourcing companies. There are other competitors in this area and these are Mexico, China, Philippines and Ireland but India is in the top of the list and has managed to supersede all the others. There are some contributing factors making India as the number 1 outsourcing destination and these are highly talented work force, fast developing infrastructure and the favorable government policies and the growth rate is to the tune of twenty five to thirty percent per year. India is the second most populated country in the world and probably the largest English speaking nation in the world. There is a talented workforce available in India with millions of graduates adding every year. It is not only numbers but also the talent that Indians possess. India is a preferred destination for outsourcing because Indians charge less compared to counterparts of USA. This is very good for the international companies when it comes to the profits. It is not only the cost factor but also the constant high quality that puts India on the top of the list. The government of India provides attractive IT policies and there is a high advantage because of the time zone difference.
The role of global outsourcing enables business without boundaries. The enterprises in the present world think globally and when we talk of global outsourcing, its core focus is on the strategic business objectives. In the present times, one can find the job titles like strategic service manager and the chief globalization officer. The fact remains that there is a complex situation when it comes to cross border business management globally and because of this, the companies want to be both innovative as well as profitable. One can align service outsourcing to business goals and one should not only see it as an instrument to increase efficiency of operations.
The fact remains that outsourcing in the present times comes in the list of important businesses. But for the un-established starters, they have to keep many parameters in the mind. The 5 Ws are very important if the person wants total success in this field and wants to reach the pinnacle. Decisions at the right time by the beginners will provide the sure guarantee for the success.