India is a pool house of talented and skilled youths. This number is increasing every day at a considerable rate because of the low rate of employment in various sectors. However, this has resulted in the growth of the Information Technology Enabled Services or ITES in India. A major part of the ITES is Business Process Outsourcing or BPO. BPO in India is one of the fastest growing industries. The BPO industry flourished around mid-90s but has expanded to a massive extent till this date.


We have been talking about BPO so long, but, what exactly is BPO?

BPO is the process where a company hires a third-party service provider to execute some of its business-related operations. These might be front-office or back-office operations. The former include outbound sales, customer services and telemarketing. The latter constitute the transactional processes like billing and collections and applications processing. Thus, BPO service technically means allowing another company to manage your backend services.


Now, that we have understood the meaning of BPO, let us evaluate the importance of business process outsourcing. Or, how does data processing outsourcing benefit a company?

    1. Cost Curtailment: Outsourcing proves to be very effective in the cost reduction of a company. The rapid growth of the BPO industry has amounted to a large pool of talent resource that can be hired at low wages. This actually benefits the company to a great extent.
    2. Enhances the Focus on the Core Business: With the outsourcing of an extensive amount of work, it enables the employees to stay more focused on the core business. This improves the efficiency of the employees promoting the overall growth of the company.
    3. Easy Availability of Skilled Professionals: When a company outsources its business to an existing established organization, it actually escapes the trouble of hiring and training a new employee. Thus, this is a great business advantage for the company.
    4. Convenient Access to Latest Technology: It is often not a piece of cake to afford the latest technologies, for any medium or small business organization. Here come data processing services to the rescue! It ensures the use of the latest technology for a prosperous business operation.

The present market trend reveals that there is a substantial growth in the IT or software industry over the years. With the extension of the IT industry, the BPO service in India has also evolved significantly. This has affected the economic growth of the country largely in a positive way. It has even boosted the employment rate as a large mass of potential youths are recruited every year by the BPO companies in India.

The call center services have played a crucial role in the economic growth of the nation. According to a report by the National Association of Software and Services Companies (NASSCOM), nearly 2.2 million people are directly employed in the BPO sector. The number goes up to 8 million when considered the indirect employment rate. It is expected that the number will rise to 10 million by 2020. Alarge portion of the Indian economy sustains on the BPO industry. To understand the influence of the data processing services, let us have a detailed discussion.

    1. Volunteered the Expansion of Indian Economy: The continuous lookout for expansion of the BPO sector has actually made way to revenue generation. With the rise in demand for outsourcing business, new ITES companies are cropping up in the country steering the growth of the Indian economy.
    2. New Employment Opportunities: Every year with the emergence of new BPO companies in India, there has been a large scale employment drive among the young skilful youths.
    3. Enhanced India’s Social Structure: Apart from the economic growth of the nation, the call center services have also stimulated the advancement of the social structure of the nation.
    4. Development of Skilled Professionals: The BPO sector is responsible for the development of talented skilled professionals.
    5. Vital BPO Destination: With the availability of experienced manpower, India provides high-quality BPO service at a cost-effective rate. This has provoked India to become one of the crucial destinations for outsourcing. Thus, it is advantageous in drawing business and raising the socio-economic status.


India has emerged as the most sought destination for the outsourcing of business. The easy availability of hardworking English speaking efficient professionals is the primary cause of the extensive upgrade of the ITES industry. Also, these professionals are hired with a very minimum wage which proves to be cost-effective to the companies that outsource their services.

There is a noticeable technological advancement over the years. Thus upgraded technologies like cloud computing, software automation, and social media are adopted by the BPO industries these days to accelerate the efficiency at work. The BPO companies in India are implementing innovation to their approach focusing on the integration to a next level phenomenon.

To conclude, the BPO sector is believed to become one of the major sources of foreign trade generation in the future contributing to a large spectrum of total economic growth of the nation. It is the present and future of e-commerce business.


Alex Johnson

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