BPO (business process outsourcing) involves converting a client's internal fixed costs into external variable costs. Outsourcing services can be performed on-site at the customers’ facilities, off-site, or a hybrid model.

Mckinsey and Company By 2008, global remote-service operations may undertake activities accounting for half a trillion dollars around the world and representing every element of the value chain. Such operations could generate cost and other savings of about $400 billion, to be shared by the users and the providers as profits.

Deloitte study discovers 7% of Global Financial Institutions plan to outsource offshore.

It has been found that medium to large sized corporations employing about 5000 employees can get a cost benefit of $9.7 m - $18.4 m per annum by outsourcing their back offices departments. The saving can vary from 35.8% to 50.7% of the total operations cost. This saving is accrued because of

   a- saving in cost due to reduced in-house back-office staff and
   b- better SLA deliverables because of outsourcing.