Business process outsourcing (bpo) from usa to india

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CHAPTER NO.1: INTRODUCTION

1.0 INTRODUCTION:

The business environment is changing rapidly in recent years and is affecting business all over the world. The management of various businesses are looking for a way to minimize the cost so the profit can be maximised. This will ensure business growth and sustainability. Hence many international companies are adopting the outsourcing in order to minimize the cost where there is less competence. IBM Daksh is one of the major Business Process Outsourcing (BPO) company in India where many Multi National Companies (MNC) have outsourced their business.

The purpose of this proposal is to help me organise my ideas and clarify my thoughts. I would also use this proposal to convince my audience that this research proposal is feasible.

My working title of the topic areas is BPO industry in India.

1.1 BACKGROUND OF THE STUDY:

The study investigates BPO from USA to India, a case study in IBM Daksh, how BPO has impacted on India with different perspectives. Adopting qualitative case study research method, the organizations overall business strategy will be discussed and how they outsource their non core functions to other expertise company. It will explain the integration of outsource with business strategies.

This assessment is based on the actuality that BPO is emerging as a market and has become more common in European countries and it has become a comprehensive part of business deals. Analysts are estimating a remarkable revenue growth of business process outsource transactions and dreaming that IT business process outsourcing will touch reach your zenith of market.

Experts predict that BPO revenue will increase 13.8 percent per year. The most accurate predictor of BPO market said that worldwide BPO industry US$7.5 million in 2009 and US$11.9 by 2012, whereas McKinsey had predicted that worldwide BPO will be US$500 billion by 2008 that almost has proven in the last 3 years.

Halvey, John K (2007) defines business process outsourcing as outsourcing of one or more business processes to a third party vendor who is an expert of those functions. BPO focuses on the overall process to minimize the cost and maximize profits. As the competition grows globally, all the organizations must want to maintain a competitive edge and must function more effectively in order to sustain a position in the market. In some sense organizations want earn more revenue and want less operational cost. So in BPOs management turned over to the vendor, who in return commits to reduce costs, provide effective services and gain customer satisfaction.

With the IT – outsource market growth, BPO customers are looking for more productivity, improve methodologies, sharing of resources and customer satisfaction. As the global telecommunication is fastest, companies are shifting work to international vendors, although many countries have specialization in different fields. India, the core of business process outsourcing has expertise in engineering and technical services. Chinese and Mexicans are expert in manufacturing whereas U.S.

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