Summary: India has watched a large exodus of BPO business to the Philippines thanks to the country’s more employable youth who are equipped with fluent English and perfect American accents. Now, however, companies are beginning to migrate back due to a greater need for integrated tech services

Today, technology is the great enabler for pretty much every kind of business proposition being schemed. However everyone is more or less also aware of how brutal the rapidly evolving world of technology can be on the fate of existing businesses—something I wrote about here when looking at the future of Xerox through the lens of the diverging fortunes of Kodak and Fuji. In India, the trajectory of former phone tzar and India’s most beloved handset maker Nokia illustrates this example more poignantly than any other company. But for an entire industry to go up in smoke almost overnight is surreal – and that’s exactly what seems to have happened to India’s Business Process Outsourcing Industry, especially its voice based businesses.
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For years, small- to medium-sized companies have outsourced specific niche functions of their businesses, such as tax preparation, legal assistance, financial portfolio management and actuarial services. Today, more and more companies are outsourcing core functions, such as accounting/finance transactional services such as Accounts payable, IT, payroll and HR, so they can shift time, money and other resources to strategic business activities, instead of focusing on administrative functions.
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Business Process Outsourcing (BPO) is a subset of Outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain.

BPO is typically categorised into back office outsourcing, which includes internal business functions such as Human Resources or Finance and Accounting, and front office Outsourcing, which includes customer-related services such as contact centre services.

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Recruitment Process Outsourcing (RPO) is a form of Business Process Outsourcing (BPO) where an Employer outsources or transfers all or part of its Recruitment activities to an external Service Provider.

The Recruitment Process Outsourcing Association defines RPO as follows: “when a provider acts as a company’s internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the onboarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company’s time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance.”
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