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How is a BPO Run and Managed Part 2

Starting a BPO in not at all like it was in late 90s when BPOs started. Starting a BPO organization then was like the following:

  • Finding an Infrastructure which is seating area with phone, electricity, Internet
  • Finding a company / client that is willing to outsource their work mainly to cut cost through labour arbitrage
  • Hiring workforce after understanding the client / business requirement like: knowledge levels, proficiency, qualification etc
  • Training the work force like process training, voice and accent training, culture training etc
  • Starting the service and sending invoices to the clients on an agreed frequency


Today, BPOs are shrinking and BPMs are evolving which means outsourcing of typical jobs like customer service, complaint handling, account information calls etc is diminishing as the world is moving towards automation, chatbots, self service portals, account information on Apps and IVR. Instead, there is a new world of outsourcing which is growing fast to support organizations / clients with work items like: Creating invoices, handling travel requests by finding the best travel options, processing Insurance policy, performing KYC check of a bank. All this is called “Knowledge Work” which involves domain knowledge, decision making etc. Considering how things have evolved and how BPO and now become BPM, large organizations / clients give work only to those organizations who can prove they know the job well. The benefit of BPM is not just cost reductions of resources but it is also the experiential output of work given by domain experts of BPM organization.
If anyone wants to NOW get started with BPM, they need to first identify which domain do they want to get into and do the following:

A.      Research on which domain has a growth potential
B.      Research how can this organization build capability to showcase domain knowledge
C.      Find out where is the work force available and what will be the cost to hire
D.      What will be the most strategic place to find the infrastructure (Keeping in mind the cost)
E.       What is the initial investment you need to make, considering first 4-6 months will be spent in capability building
F.       Building a strong business development team
G.      Finding out the value chain of the domain you are targeting and planning to start form the first (Most basic) step

Now that you have all of the above, you can get your approx. investment estimates by adding by the cost of all of the above bullets (A – G).

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