Outsourcing Benefits

Outsourcing benefits i.e. benefits accrued as a result of outsourcing are numerous. outsourcing is advantageous as it links to shareholder value. Business Process Outsourcing is about optimizing business performance to attain value creation. There has been a tremendous upsurge in outsourcing and outsourcing industry in many developing countries like India because of their (outsourcing) expertise in reducing costs while increasing service quality.

Another great outsourcing 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. Outsourcing 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.

Reduction in costs is another outsourcing benefit. outsourcing provides quantifiable benefits through improved efficiencies, lower overhead, reduced payroll and benefit expenses, and fewer capital investments. Other outsourcing benefits include assurance of best practices, skills, and technology. It is important to note that outsourcing provides access to proprietary workflow systems, process reengineering skills, and innovative staffing and delivery models, coupled with world-class technology delivered by experts.

Cost Saving

One of the most important benefits and advantages of outsourcing the business processes is in terms of cost savings. The companies that outsource their work have the access to the best of talent and expertise in the BPO field and that too at very low wages. Various studies have indicated that for every one dollar invested in BPOs across India, the value derived by the US economy is between $12-14. This is what makes the outsourcing to India an irreversible process. It is a reality that the companies which have shifted their BPO work to India have garnered savings of around 40-50% till now.

Productivity Improvements:

An important facet of business process outsourcing is its ability to free corporate executives from some of their day-to-day process management responsibilities. Conventionally, executives spend 80 percent of their time in management of details and only 20 percent on formulating strategies. But the scenario is remarkably different when the business process is outsourced. Once a process is successfully outsourced, the ratio can be easily reversed. In such situations, executives get more time. This saved time helps them tremendously to explore new revenue areas, accelerate other projects and focus on their customers. This, beyond doubt, leads to productivity improvements.

Companies that outsource their business processes are often able to capture new efficiencies and in the process improve upon their productivity. They are in a better position to reallocate their resources to other important projects. This also helps their employees to increase their efficiency and productivity. In most cases, high-caliber subject-matter experts are brought in to design and manage these processes. They bring with them increased productivity and years of experience that most companies don’t have access to or can’t afford on their own. Availability of highly qualified skill pool and faster adoption of well-defined business processes leads to productivity improvements without compromising on quality.

Focus on Core Competency:

Business Process Outsourcing gives tremendous help to the companies to concentrate more on the core areas of their business. The most important factor behind the growth in the BPO market world wide today is an increase in the number of enterprises that are reviewing their internal operations in an attempt to fully understand their true core competencies. In the process they are able to focus more on their core competencies. Business Process Outsourcing gives more freedom to the management to focus more time, energy, and resources on building the company’s core businesses. It is because the BPOs assume full responsibility for managing the day-to-day back-office operations.

Once outsourcing of certain processes take place it becomes easier for the company to compare and evaluate the efficiency and effectiveness of services that are being delivered from outside and inside. This decision-making process often includes an evaluation of the cost of owning technology – with its associated support costs, that are not core to the enterprise (HR is one such example). This trend is leading to an increased keenness to outsource processes that are considered non-core, yet critical activities. These critical activities include claims administration, HR services and payment services.

BPO Advantages - At a Glance

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 customer’s 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.

Increase in Capabilities

Apart from other advantages, business process outsourcing has another big advantage which leads to increase in capabilities of the employees and the company. With this know-how increased capabilities can be seen. In addition to doing things more efficiently, employees can expand their ability to deliver new products and services to their customers. Then there are the factors of scalability and scope. Companies that want to grow internationally must continuously invest in infrastructure and find talent around the world and this is possible only trough business process outsourcing. Many outsourcing providers are already established globally and help in increasing the capabilities of the companies that are outsourcing their work to these BPOs.

BPO Advantages India

BPO Advantage India Today, India is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of BPOs and IT industry hence the name BPO India.

Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. India also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Indian BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO India.

Human Resources:

Availability of suitable human resources is one of those factors which have made India one of the hotspots of BPO/IT industry. India is home to a vast pool of human resources consisting of educated, English speaking, tech-savvy personnel. Every year, approximately 19 million students are enrolled in high schools and 10 million students in pre-graduate degree courses across India. Moreover, 2.1 million graduates and 0.3 million post-graduates pass out of India’s non-engineering colleges. These figures very well give the idea of human resources availability in India.


India definitely enjoys the benefits of a vast pool of skilled workers who are proficient in English language. India produces the largest number of graduates every year and most of these graduates have the knowledge of English language. Thus, language is one of those factors which attract MNCs to contract out their business operations to Indian BPOs and IT companies. Though there are competitors like China which also have a large pool of skilled workers but they don’t have enough graduates who have command over English language.

Quality Manpower

In term of human resources, there are a number of countries who are at an advantageous position but the real difference between them and India is of quality man power. In the field of information technology and computer software India experts have proved their worth beyond doubt. India is rich not only in terms of number of qualified people but the quality of our professionals is also of international level.


Improved infrastructure is another important factor which has helped India to achieve tremendous success in the field of IT/BPO. There has been tremendous growth and improvement in telecom, power and roads infrastructure in the last few years in India.

Relevant telecom facilities are an important precondition for the success of the software and BPO industry. The Indian government has taken numerous steps to improve the telecom infrastructure in the country. The international bandwidth situation has improved dramatically over the last 3 years. The privatization of the telecom Industry has resulted not only in significant drop in rates but also better services. The telecom costs have dropped by about 85% in 3 years.

Why Us?

Firstly, I would like to pay special tribute to all members of the Xprezto Outsourcing team – and indeed everyone across the Xprezto Group – for their continued hard-work, dedication and enthusiasm. A tremendous amount of effort has been put in by the entire Xprezto team over the past 10 years. Great progress has been made and we look forward to building on this throughout next year also. It truly is both an honour and a pleasure to work with such an exceptionally talented, enthusiastic and hard-working group of people as we have at Xprezto.

Xprezto is a great place to work. We have gone to great lengths to keep our organizational structure relatively flat and to constantly encourage and nurture our particular culture. In spite of significant growth over the past few years, Xprezto has managed to maintain the ‘feel’ of a high energy, entrepreneurial start-up where ideas and suggestions are sought (and received!) from every corner of the organization.

Our business is all about people and relationships. Our clients are at the heart of everything we do. What other firms might call ‘client engagements’, we think of as partnerships and collaborations. This idea goes right to the heart of how we view client partnerships at Xprezto. We are interested in relationships, not transactions. The positive feedback we receive from clients is both a constant source of pride and motivation for everyone at Xprezto.

We are currently in exceptionally challenging times for commercial enterprises everywhere. However, we recognize that it is the companies who strive to become leaner & more competitive during the ‘bad’ times that will emerge stronger when the sun shines again, as it surely will. It is vital for organizations of all shapes & sizes to consider all options at an operational level while, strategically, positioning their organizations for long-term growth and success.

The past few months have seen a number of significant developments at Xprezto. We have further strengthened our team with the arrival of some highly-talented and hugely experienced new colleagues.

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