Shroff Foundation Trust - Vanbandhu Kalyan Yojana - Government ...

is the organizational interface of the two enterprises during all the outsourcing
activities.
The BPO mechanism: Financial Times (2004) explains the mechanism of BPO
whereby a BPO provider assumes primary responsibility for delivery,
maintaining and developing a business process or sets of functions. Contracts
are usually long-term and, in some cases, staff responsible for the outsourced
function move across the customer to the provider.
The two above concepts give a micro-economic dimension to BPO as a
management strategy. When we look at the bigger picture and consider the
macro framework, we should include a third actor: the Government or the
country in which the service is being delivered. We can therefore emphasize
from the very outset that BPO as an industry has three main actors: the client
who requires the service, the vendor who provides it and the country which is
the location from which the service is provided.
Outsourcing: The Status & Potential
From a general point of view, Ventoro (2004) reports that the outsourcing
industry in general has the following configuration as at date:
There are some 10,000 vendors offering some form of outsourcing
There are offshore outsourcing vendors in over 175 countries
There are some 500 Government Agencies, Trade Groups and NGOs actively
campaigning to grab a larger share of the global outsourcing market
Considering BPO on its own as an industry, Forrester (2004) said that while it
believes the BPO market will grow to $146 billion in 2008, the market place will
fragment as vendors focus on individual BPO segments like simple bulk
transactions, broad shared services, high-volume vertical processes and niche
vertical applications. A further analysis made by Forrester reveals that:
Shroffs Foundation Trust 7