Opening New Avenues Through Domestic Outsourcing

Business process outsourcing is one of the most rapidly growing industries in the world today. Though it is not an industry, it includes various sub activities of many main industries such as manufacturing, trading, marketing, banking, insurance and financial services. Since itworks for all these industries, it has been treated as an industry. This is due to the enormous growth and development of outsourcing of work in the past few years over the globe in many countries.

BPO in simple language can be defined as the act to give a specific function or work to a third party with the condition to maintain required standard and quality in order to focus on your core activities. So BPO simply helps you in focusing on your core area and other non core activities can be outsourced to an outside agency for which it becomes a core activity and have specializations.

In past, there were no such specific outside agencies that were existing but when people knew about this advantage they started concentrating on the non core activities of large corporate which has a huge volume of work and started providing these companies with the specialization of work for their non core function, which is very large number and gives cost advantage to all the parties involved in the transaction and generates great employment opportunities.


BPO as a concept and industry has really emerged and known to people in the past few years but it is not a new activity for all of us. People in their day to day life and even in the small and big business have been using the outsourcing model since years. Few e.g. could be the keeping a maid at your home to carry out the regular house cleaning work so that you can focus on activities which are more important to you. For business the manufacturing units many times send material outside to job worker for some process.

I rather something think that an entrepreneur is the oldest example of outsourcing as he is the person who has an idea or some business model. He starts his business and at the initial stage he himself is involved in handling many functions such as production, marketing, accounting, finances etc. But as he grows he hires people to handle various functions and he focuses on the core activities of business development. If the organization grows to a really good level he may further outsource many unproductive and non core activities to outside agencies. But in all this he never compromises on the quality of work and the deadlines.

So the outsourcing has been existing for years for the people who had the thrust for the competitive advantage for cost and quality. Now that people have really understood it as a strong business model they are really creating more opportunities for them.


The very fact that how BPO became known to people of India so fast, was due to the international outsourcing model i.e. outsourcing between the two nations. As we know that there is a huge gap in the cost of manpower and infrastructure in the developed and developing nations. Both of these costs are further affected by high population in the developing or undeveloped nations which makes the manpower cheaper in these countries. This has resulted in the historical growth in the international BPO market.

The above opportunities have been observed by the multinational companies and the international business community and they have really taken the advantage of this by outsourcing the work to India and other underdeveloped and developing nations.

The 80 % of the business for export BPO is from the two countries i.e. US and UK and this has created a dependency for these nations. This increasing trend of international outsourcing gave a setback to the developed national such as unemployment and other social security issues and due to this the administrator of these countries has started demoralizing the outsourcing model. Further this has been hit by the recession in the international market. The main reason I could understand is that that these nations have outsourced the work but they really could not focus on their core activities and specialization. This has created uncertainty in the highly growing international BPO market.

The above factors have made the International BPO more challenging and resulting in Indian BPO Industry to rethink their strategy and a need to broaden its horizon and look for alternative path of growth which is less volatile and affected by the global country and industry specific dominance. There are many advantages and factors which provides us the facts that the domestic outsourcing will be very successful in India. We will analyze each factor individually. First have a look at the potential of the Indian Domestic BPO market.


The Indian BPO Industry has a huge potential which may be very difficult to assess. People have realized the advantage and benefits of the Domestic BPO and many of the big companies like Infosys, satyam, Infovision, Intelenet have started focusing on the domestic BPO realizing the future of the Industry.

Leave a Reply

Your email address will not be published. Required fields are marked *