A Comprehensive Guide to Start a BPO in India

November 25, 2024

Registrationwala

Starting a BPO business in India can be a highly profitable venture. The Indian BPO industry is known for its impressive profit margins and the steadily increasing demand for outsourcing services. Furthermore, India has built a strong reputation for delivering exceptional BPO services to leading global companies, thanks to its expertise and strategic geographic proximity to other countries. Want to find out how to start a BPO company? Check out this blog post!

How does the BPO Industry Work?

BPO full form is business process outsourcing. A BPO company is a third-party provider which handles some of a business's operations. Certain companies give some of their operations to BPO companies located in different states or even different countries. They do this to save up business costs or to get their work done more efficiently.

For example, a company based in America might give a contract to a BPO company located in India for customer service or data entry. People employed at BPO do the work for the American company using phones, computers and the internet in accordance with rules of the American company. Because of this, the American company gets to focus on other important business tasks while the BPO does small or big tasks on its behalf.

The BPO industry in India is a major contributor to the economy of the country. It is one of the world’s largest outsourcing destinations. Some crucial players in this industry are Tata Consultancy Services (TCS), Infosys BPM, Wipro BPO, Concentrix and Genpact.

Some reasons why India’s BPO industry is so successful are cheap labor costs, English-speaking workforce and advanced IT technology. According to a Statista report, the BPO market in India is anticipated to go up by 8.76% (2024-2029) resulting in a market volume of US$10.94bn in 2029.

Services Offered by BPOs in India

Some services offered by BPOs in India include:

Customer Support.
Data Entry.
Online Survey.
Accounting services, such as cost accounting, accounts receivable/accounts payable management, tax filing & reporting.
IT Support.
Human Resource Services, such as Recruitment.
Research services, such as global market research, investment management, risk & compliance solutions.
Shipping service, Logistics, and Delivery of products.

What is the Role of a BPO Company?

Businesses improve efficiency and save up their money when they approach BPO companies for assistance. Some roles and responsibilities of a BPO Company are stated below:

BPO companies can handle client communications using various channels such as social media, chat, email, phone and so on.
In order to support the expansion and growth of companies, BPO companies can offer specific expertise and skills to them.
BPO companies help companies to save money by reducing expenses related to hiring, onboarding, training and staffing.
They make use of analytics and business intelligence tools to analyze data and deliver insights that are useful for companies for making crucial business decisions.
Since BPO companies take care of the time-consuming activities, enterprises can focus on other essential tasks and increase their productivity.

Through the above-mentioned points, you must’ve understood how BPO companies help businesses.

Documents Required to Start a BPO Company

To start a BPO company in India, you need to obtain an OSP license from the Department of Telecommunications (DoT). To obtain this license, you will have to file an application with DoT and provide the following documents along with the application:

Demand Draft of Rs. 1000 in the name of “Pay & Accounts Officer (HQ), DoT” for the handling fees.
Memorandum of Association and Articles of Association.
Certificate of Incorporation.
The leased lines bandwidth, in case of a domestic BPO company.
The IPLC bandwidth, in the case of an international BPO company.
Current Ownership Details.
Office Layout with Machine Information.
Board approval or a legal authorization document.

Step-by-Step Guide to Start a BPO Company

The following steps need to be followed to obtain an OSP license to start a BPO company in India:

Step 1: Register Your Business

To obtain OSP registration, you need to establish your business as a private limited company first. A sole proprietorship or partnership firm cannot obtain the OSP license. Thus, you must mandatorily file an application for company registration with the Registrar of Companies (RoC) and obtain a Certificate of Incorporation.

Step 2: Gather all the Relevant Documents

To file an application for OSP license with DoT, you must submit all the relevant documents mentioned earlier in this blog post. For filing an online OSP application, you must sign, scan and store in an appropriate storage device.

Step 3: Submit the OSP Application

For filing the OSP application, Form-I must be used. The OSP registration can be secured online through the DoT website. When you submit the OSP registration application, you must pay an application processing fee as well.

Step 4: Issuance of OSP DoT License

After the application has been filed, DoT will assign an assessment officer to review your application. If there are any issues with the application or any further clarification is required, you will be notified so you can rectify it or provide an explanation to the authority. After this, if DoT is satisfied with the application, you will receive an OSP license so you can provide BPO services legally.

Conclusion

Starting a BPO business can be profitable given the demand for business process outsourcing in India and abroad. Many international companies reach out to BPO companies in India for customer support, data entry, HR services, etc. To start a BPO company in India, securing an OSP license from DoT is a mandatory requirement. For this, an application can be filed with the authority by visiting the official DoT portal.

Frequently Asked Questions (FAQs)

Q1. What is meaning of BPO outsourcing?

A. BPO outsourcing refers to the process of outsourcing some aspect of a company’s business operations to a third-party service provider.

Q2. Is GST Registration required for BPO company?

A. It depends on the BPO company’s annual turnover. If its annual turnover crosses Rs. 20 Lakh, then yes, the BPO company will have to secure GST registration.