Why BPO? As mentioned above, Business Process Outsourcing (BPO) is the delegation of one or more labor-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria.

BPO has become the new imperative because of:

- Factor Cost Advantage
- Superior Competency
- Utilization Improvement
- Economy of Scale
- Business Risk Mitigation

Availability of highly qualified skill pool and faster adoption of well-defined business processes leads to higher productivity gains without compromising on quality.

Customers across verticals like Insurance, Banking, Pharmaceuticals, Telecom, Automotive and Airlines seem to be the early adopters of Business Process Outsourcing. Of the vertical listed above insurance and banking are able to generate bulk of the savings purely because of the large proportion of processes they can outsource like claims processing, loans processing and client servicing through call centers.

Improvement in cost, quality and productivity has encouraged customers to rapidly scale up their offshore operations. It is no longer seen as a one-time cost reduction or process improvement but customers are demanding year-on-year improvements in process metrics.