These tasks can include a variety of departments such as finance, operations, human resources, back office operations, accounting, customer care, contact center services and so on. This sector of business has been trending for quite sometime. This outsourcing is mostly considered by big corporates when they do not have enough resources or infrastructure to carry out their operations. In such cases, these tasks are outsourced to a cost effective third party provider.

Outsourcing is done in many sectors of business. It is especially more popular in the IT industry. It is popularly known as ITES­BPO. Other types of outsourcing include knowledge process outsourcing (KPO) and legal process outsourcing (LPO). The reasons why BPOs came into existence are aplenty. Initially outsourcing was done to accommodate company's flexibility and lack of infrastructure. Operations were outsourced to cost effective destinations such as Asia and South East Asia. This enabled the companies to get their operations fulfilled with greater efficiency and direct control. Another advantage of outsourcing tasks is that companies can focus on their core activities instead of being distracted or dividing attention to other bureaucratic activities which can be easily done by a third party specializing in those operations.

Not only are the business heads relieved from menial administrative tasks but sizable number of resources also can be reallocated to core business departments. Also, outsourcing aids in speeding up the business process. Supply chain management with the effective use of supply chain partners and business process outsourcing increases the speed of several business processes, such as the throughput in the case of a manufacturing company. Another advantage is that companies can expand freely without any bondage to address every department in their company. They can retain their speed and agility in their operations as their expansion will be limited to their core tasks. Other tasks on the other hand is managed effectively by the BPOs. Companies can maintain their goals growth wise without the regular business bottlenecks hampering the development and progress.

In spite of several benefits and advantages listed above, outsourcing does have its own limitations. Firstly, there is a possibility that BPOs , may not be competent enough to provide required service levels. The contractual terms may not be well received leading to faults and lapses in services. Secondly, there are good chances due to unforeseen circumstances the need to outsource may no longer hold good or company's financial status may not permit outsourcing as a viable option. Thirdly, sometimes the flexibility what a company is trying to achieve through outsourcing, itself becomes a hurdle as it may not be in alignment with the objectives and goals of the operations of the company. Fourthly, there are several risks involved in outsourcing company operations. Security needs to be ensured else critical company information can be leaked via thirdparty service providers. There needs to be a seamless coordination between both the ends to enable smooth functioning. At the same time, for BPOs these jobs cannot be termed as stable as the outsourcing is at the discretion of the company and can be terminated sooner or later.

BPOs have definitely created a stir in the job market as compared to before more number of jobs are available at various levels of seniority and experience. Due to costing factors, most of the outsourcing activities are preferred overseas especially Asia and the East. This gives rise to the concept of onsite/offsite activities. So we can say that in spite of the limitations, overall BPOs have been a source of mutual benefit for both the onsite and offsite employees and employers.