With the globalization of commerce, Business Process Outsourcing (BPO) is emerging as a key business opportunity in India. It has been proved that by outsourcing non-core business processes to service providers companies can focus on their core competencies and create value for their stakeholders. India is one of the jurisdictions, which provides high value in the form of skilled and comparatively cheap labor and good technology backend infrastructure making it a favored BPO destination.
Increasing numbers of businesses and other institutions are turning to outsourcing to achieve mission critical objectives such as:
(i) The reduction of costs and internal staffing commitments.
(ii) The release of scarce capital to more productive uses.
(iii) Access to specialized expertise and in some cases.
(iv) To establish or strengthen strategic business relationships.
While the benefits of outsourcing are compelling, there are substantial risks associated with the transfer of business critical functions (such as the operation of a firm’s IT systems) to a third party service provider. It is vital that the structure of the deal and the principal agreements effectively address, manage and allocate the risks associated with the outsourcing, while providing the customer with the requisite level of flexibility. Law Firm has the expertise and the experience to assist businesses chart the outsourcing course wisely.
In the Indian context, BPO is synonymous with IT enabled services (ITES), whereby business processes and/or services are performed in India and delivered over communication networks, including the Internet worldwide.