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How to choose the best business process outsourcing company in India?

Posted by Vaishnavi Verma

In today’s world, it is more than necessary for businesses to engage in smart, innovative, inventive, and customer-oriented processes with a management team in place. Modern process management techniques can take your business from level 1 to the maximum, from good to great, and from unknown to well-known.

With the right business process outsourcing company by your side, brands can boost their growth in terms of customers, reviews, sales, revenue, and geography. India is the hub for outsourcing and IT management for the world, offering highly cost-effective and reliable services. However, now with the realization of the infinite potential of business process outsourcing in the Indian market, several companies are trying to tap this profitable business nerve. Which is why finding the right outsourcing company has become a tedious job for companies requiring such services.

To help find the right outsourcing partner; the following will guide will detail everything you need to know about business process outsourcing, its types, processes, functions, and the current market outlook of the industry.

What is business process outsourcing?

You might have read this definition like a zillion times, but there is one phrase that suffices the tasks and functions undertaken by a BPO company.

Business process outsourcing is the act of outsourcing essential and non-essential functions of a company to a hired external services provider, called a BPO company. The range of services covered in the name of business process outsourcing includes a variety of operations like payroll management, customer support, finance and accounting, sales and marketing, social media management, etc.

From startups to Fortune 500 companies, a business of all sizes and genres indulge in business process outsourcing services to seek its advantages and get ahead of the competition. BPO is the right alternative to labor migration and its related costs, allowing employees to work from their home country while contributing to the overall development of the business abroad.

Moreover, BPO operations are subdivided into two services; back office and front office. Back-office functions, regarded as repetitive and mundane, include billing and purchasing processes. Front office operations include need-based assistance like customer queries and requests, marketing, and tech support. BPO can couple both the services together or provide independently. 

The BPO industry is categorized based on the location of the external service provider. A BPO company is referred to as nearshore, offshore, and onshore.

  1. Offshore: These vendors are located in another country other than the vendee. For example, a company can be located in the US and its vendor can be located anywhere other than the US, like India.
  2. Nearshore: These vendors are located in countries neighbor to the contracting company’s. For example, the vendee can be located in the US, and its vendor in Mexico is regarded as nearshore.
  3. Onshore: These vendors are located in the same country as the vendee. For example, a contracting company located in the US and its vendor is also located there is regarded as onshore.

Why do businesses outsource their functions to an external company?

There are various reasons why companies wish to outsource their functions to an external service provider, and most of the time, it is due to cost restraints and unavailability of skilled labor. Moreover, vendees opt for a vendor located in a developing company since they have to pay lower than the average required in their country and still receive quality work. Moreover, US companies benefit from outsourcing operations to countries with a lower income tax because then they have to pay the rate of the host country.

To decrease costs:

Outsourcing helps to cut down costs since rather than housing labor, providing perks, staffing, training, accommodation, companies can focus on getting the task done. Since an external service provider is located in a developing country, companies can take leverage for lower-cost labor models, like fee-for-service plans or fixed-cost models rather than hiring and retaining local employees. It results in significant cost savings for the contracting company, resulting in a win-win proposition for both the vendor and the vendee.

To concentrate on key functions:

Outsourcing allows businesses to focus on core business functions rather than worrying about some collective functions. For example, with an outsourcing company, you won’t have to worry about the payroll accountant’s performance. So, it protects your energy from all those tasks and helps maximize your business’s potential and growth. Businesses can, therefore, engage with actions that would result in customer satisfaction and increased profits.

To achieve better results in non-core functions: 

Outsourcing companies specialize in performing non-core functions of a business. However, it doesn’t mean that businesses don’t need specialized services in such a domain. They do. But companies can take up other tasks if they anyone taking care of all such non-core tasks. For example, a sales and marketing company isn’t much concerned with the new type of payroll management program in the market. So, then outsourcing becomes a profitable and rewarding avenue. With outsourcing, you can forgo the payroll management process to a vendor while improving your performance in the process.

To expand business globally:

Outsourcing companies that have a global presence can help expand your business. Moreover, some outsourcing companies can service clients in multiple languages around the clock, all day, every day. This helps businesses to take a global level into account, leverage their presence in multiple countries, and keep the redundant tasks in their local division up to a minimum. With multiple delivery centers spread across the globe, outsourcing is the first step you take into being a worldwide phenomenon.

To enhance flexibility:

When companies outsource their functions to a third-party service provider, companies can take relief from non-critical functions and act more quickly and efficiently when managing the risks associated with the introduction of new products and services. They can re-assign their internal functions to the vendor and take up critical actions. This ensures better coverage and leads to the right allocation of responsibility. Overall, this enhances the flexibility of the process.

To improve speed and efficiency:

Companies that outsource their processes to a vendor, only do so to a specialized provider, adept in handling the charge of the processes. In the long run, it will save money and time, improving accuracy, and increasing their capacity, therefore, enhancing their productivity. For example, a BPO company that is well-versed in legal management can index the document, make it available for retrieval and keep all the compliances in check. IT completely replaces the need for manual data entry and storage.

The top tips to hire the right business process outsourcing company

India is the outsourcing resource for the US and other parts of the world. Over the last few years, the availability of skilled and affordable labor has made India, a preferred choice in the outsourcing business. However, considering the overwhelming number of options in the country, finding the right outsourcing partner for your business is no longer a cakewalk. When you delegate your job to someone else, you develop a sense of trust in their working demeanor. If you do not trust them, then your business won’t be able to use outsourcing to its fullest potential. To find the right BPO company, the following are some key considerations to be noted.

Check their track records and credentials:

India has a wide storehouse of talented employees sold at a reasonable rate. It is difficult for companies to look for outsourcing partners in India from the pool of service providers. The best way is to check for the credentials of the outsourcing agencies before picking any one option. This ensures that you have the right company by your side who’ve serviced clients like you before. Look for companies possessing technical expertise, skillsets, access to the latest technologies, experience in solving complex challenges, and passion for your project.

Market reputation is equally important:

No business can afford the distress of having a misjudged or unworthy reputation. Moreover, businesses don’t want to compromise on quality. They cannot work with vendors who miss deadlines, aren’t polite, and do not offer transparent services. Therefore, it is equally important that you check the reputation of your outsourcing partner before you sign an agreement with them.

Thanks to the internet, researching a business’s reputation is easy these days. You can check their history of service, reads reviews from present and previous clients, study the reviews posted by current and past employees, and explore all the related elements. Before you sign an agreement with your outsourcing partner, you must find as much information as you can about a vendor.

Communicate clearly about project budget:

Budget is one of the most integral and confusing factors that can ruin your relationship with the vendor, and cost you the project as well. If you expect superior services from a business process outsourcing company, then you must know that such services come at a superior price.

So, before you start searching for an outsourcing partner, you need to figure out how much money can your business expand for this project. Once you have a clear figure in your mind, communicate the same to the outsourcing partner. Don’t go around with vague figures, but the right one. It will allow the outsourced vendor to have a clear idea about the project budget as well.

Protect your data and intellectual property:

In today’s internet-booming world, privacy and data security has become a consistent concern for people. So, when you outsource your services to an outside vendor, of course, you will be sharing sensitive business information with them. So, you need to be absolutely sure that your data isn’t being mishandled in any way. Therefore, it is highly recommended that you sign a non-disclosure agreement with the selected partner before sharing any critical data with the outsourcing partner.

Other than this, associate with a vendor that conducts network and security audits regularly in their workplaces. They must use specific tools that will help in protecting all your sensitive data and prevent any data threats and leaks from occurring. The vendor must possess stringent data security protocols and procedures to ensure there is never a data breach situation.

Use dynamic and agile processes for business development:

For businesses that wish to keep through the competition in today’s world, adopting agile methodologies is the key. This is the only way businesses can accommodate the variating needs of the customers, and provide exemplary service. Agile and dynamic methods ensure that a highly collaborative and active workforce, taking charge of instantaneous processes as well. So, if you want to establish your reputation as the top contender in the market, hiring an active and agile vendor is one of the first requirements.

A vendor should be able to service delicate customer requests as well, keeping the reputation of the vendee intact in that process. It should be adaptable to the changing needs of the customers and hold an experience in the same.

Flexibility is the key:

There are no said procedures to be followed to maintain the efficiency of business processes. Many-a-times, businesses have some urgent requirements that need their notice. So, in such a process’s flexibility is of utmost importance. Find an outsourcing partner that can take in your tedious and challenging tasks, no matter the time zones, and provide flexible services.

Flexibility, as a term, should be included in the contract. A vendor should be serviceable in times of urgency and should agree upon similar variables in the agreement.


Finding a business process service provider who agrees with your terms and conditions is a tedious task, but not an impossible one. Moreover, outsourcing has become a way of life for businesses to advance in their operations, boost business growth, and efficiency.

Big organizations like Github, Skype, and Slack are doing it so can you!

The idea is to explore your requirements and find a business process outsourcing company that agrees with it. If you want to lead and not follow, then the right outsourcing partner can help you accomplish that goal.

Tags: BPO

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