Global competition is the most important issue faced by the world's largest companies today, and hence they are focusing their resources on their core competencies as business strategies to compete profitably in a global market. For this benefit, the Business Process Outsourcing (BPO) industry has evolved. There are three different BPO business models - transactional, niche, and comprehensive, as strategies of business success. Now, the companies have started concentrating on product innovation which helps their clients to reduce the product introduction cost by 30 to 50%. It also facilitates flexibility in product pricing and designing the product to fully exploit the market capabilities and technological innovations. Today, the outsourcing industry is moving towards a high-level of specialization with great competition from low-end process to high-end process jobs such as knowledge process outsourcing and analytical process outsourcing.

Today, Business Process Outsourcing (BPO) function happens worldwide with the objective of reducing the operational cost of the product and to bring more product innovation and efficiency in the service offerings to the customers through expertise service. Outsourcing in the world was earlier dominated by big players like IBM, CSC, EDS, Accenture and ACS. Now the trend has changed, as many outsourcing companies have started their operations with more competitive offerings than the major outsourcing firms could offer to their clients.

With more than $100 bn contracts to be renewed in the next two years globally by the major outsourcing firms, they fear that a major share of the outsourcing contract will shift towards other outsourcing services. The outsourcing service providers mainly affected will be IBM and EDS, as both are estimated to share a contract size of $50 bn in the outsourcing industry. New outsourcing service providers are concentrating on their core competencies rather than on other areas and this is what the outsourcing companies too are expecting from the service offers. Moreover, products and services offered by them are more innovative and flexible to suit the needs of the outsourcing clients.

Global CEO Magazine, Business Process Outsourcing, BPO, Business Strategies, Global Markets, knowledge Process Outsourcing, KPO, Analytical Process Outsourcing, APO, Outsourcing Industry, Research and Development, R&D, Customer Service Marketing, CSM, Legal Process Outsourcing, LPO, Risk Management.