BPO Benefits:
1. There has been a tremendous upsurge in BPO and
outsourcing industry in many developing countries like India
because of their (BPO) expertise in reducing costs while
increasing service quality.
2. Another great BPO benefit is that it helps companies to
focus on core areas. Companies generally outsource processes
to reallocate accountability and control costs. Thus the
management is in a better position to focus on core areas,
and not keep itself engrossed in other areas.
3. It also helps companies to avoid capital expenditures,
which is in particular important in non-core areas that may
need new systems and up gradation. By and large, companies
only want to spend money on core areas.
4. Reduction in costs is another BPO benefit. BPO provides
quantifiable benefits through improved efficiencies, lower
overhead, reduced payroll and benefit expenses, and fewer
capital investments.
5. Other BPO benefits include assurance of best practices,
skills, and technology. It is important to note that BPO
provides access to proprietary workflow systems, process
reengineering skills, and innovative staffing and delivery
models, coupled with world-class technology delivered by
experts.
6. Companies that outsource their business processes are
often able to capture new efficiencies and in the process
improve upon their productivity.
Or
BPO Advantages:
Cost reductions- Cost reduction is done through process
improvements, reengineering and use of technologies that
reduce and bring administrative and other costs under control.

Concentration on core business- With the day-to-day back
office operations taken care of, the management is free to
concentrate more on the core business of the company.

Outside expertise- Company is saved from the hassles of
recruiting and training personnel. BPOs ensure that experts
from another company provide the needed guidance and skills.

Cater to changing customer demands- It is another great
advantage of out sourcing the business processes. Many BPOs
provide the management with flexible and scalable services
to meet the customers' changing requirements, and to support
company acquisitions, consolidations, and joint ventures.

Revenue increase- As stated above, by outsourcing non-core
processes, companies can concentrate on increasing their
sales and market share, develop new products; spread out
into new markets and increase customer service and
satisfactions.



Disadvantages of BPO
Although there are several reasons in favor of outsourcing,
a company must also consider the disadvantages of
outsourcing. Lately however, the concept of outsourcing has
been criticized. The negative attitudes toward offshore
outsourcing have been mostly discussed by parties in the US
and UK, due to job losses in the mentioned countries. 
Some people in countries like the US, feel that outsourcing
is threat to their economy. Outsourcing jobs to offshore
destinations, is causing unemployment in the minds of some
people.
Both high and low-end jobs are moving out of the US causing
people to loose jobs. The needs of companies, national
economies and those of individual people often clash. 

1. Loss of managerial control:  because it is more difficult
to manage outside service providers than managing one’s own
employees working possibly in the same building. 
2. Hidden costs: Often the hidden costs are difficult to
calculate or prepare for. These include legal costs related
to putting together a contract between two companies and the
time spent to coordinating the contract. 
3.  Threat to security and confidentiality:  Another
disadvantage of outsourcing can be a If your company is
outsourcing processes like payroll, medical transcriptions
or other confidential information, a company must be very
careful in choosing which process it wants to outsource and
to which provider. 

4. Flexibility: A possible loss of flexibility in reacting
to changing business conditions, lack of internal and
external customer focus and sharing cost savings may also be
a disadvantage of outsourcing. 

5. Other disadvantages of outsourcing may include
unfavorable contract lengths, loss of competitive edge,
problems in contract renewal, and contractual misunderstandings.

BPO Services

Customer Support Services: Answering customer queries
through voice, e-mail and chat. 

Technical Support Services: Finding and providing solutions
for customer problems related to hardware, software,
peripherals, and Internet. 

Sales and Telemarketing Services: Interacting with customers
for selling or promoting products or services. 

Administrative Support: It includes indexing, form
processing, data entry, document conversion, scanning, etc. 

Customer Relationship Management (CRM): It includes services
such as taking orders, customer service, product support,
technical help desk, and market research. 

Finance and Accounting: It includes internal auditing,
travel expenses, time and expense management, credit and
debt analysis, collections, invoicing, accounts payable,
accounts receivable and billing-dispute resolution. 

Human Resources and Training: It includes recruitment,
training, attrition/retention, database management,
contract-worker management, etc.