IT outsourcing began to evolve in early 1960's, largely in response to cost saving opportunities. In 1963, EDS signed an agreement with Blue Cross of Pennsylvania for handling its data processing services. This was the first time a large business had turned its entire data processing department to a third party. Following the trends, Kodak also outsourced its mainframes, telecommunications & software development & maintenance services to IBM. More companies are now joining in hands to outsource its business. Most of the deals formed earlier were single vendor total outsourcing contracts but as outsourcing went on global level different types of outsourcing arrangements have emerged like BPO, application service providers(ASP), KPO.
Business Process Outsourcing has become a strategic business choice that can be leveraged for competitive advantage. It enables client to focus on their primary business operations & to achieve a combination of lower costs, improved productivity & flexible staffing options. IBM BPO services include human resources & customer relationship management. There is also business application outsourcing which helps companies to control software development costs keeping up with the latest market changes. To benefit businesses, companies hire consultancies for their software development applications. IBM hires Salix Resources for the same purpose.
After seeing the profits that are earned through BPOs, companies have now started outsourcing knowledge as well. KPO is now emerging as the biggest opportunity in the coming years & has brought a revolution in all fields. Hewitt Associates is the best example in this regard. KPOs provide with the best infrastructure facilities, staff & latest technologies as well. Cost saving through KPOs is enormous. The future of KPO is encouraging for all the people of all fields .Let it be business or employment. KPO will provide massive employment to the talented professionals in the coming years.
