A Comprehensive Guide to start a BPO in India

What is a BPO?

There are corporate organizations in the United States and other developed countries who would opt to cut overhead cost as low as they can and still maintain the professionalism of highest order and get excellent services. In this context, India has emerged as a Business Process Outsourcing power-hub, also known as Information Technology Enabled Services (ITES), because of a talented pool of people and strong English speaking population. BPO is one of the fastest growing sector segment of the ITES Industry, but to start a BPO some serious research, planning, and creativity is necessary and most importantly a DOT OSP License Registration. 

Services Provided by BPOs

BPO provides services like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, call center, network operation center and other IT Enabled Services, by using Telecom Resources.  If telecom service is used by the BPO, it is mandatory to obtain an “Other Service Provider” (OSP) registration by applying to the Department of Telecommunication to start a BPO. It is noteworthy for businesses that wish to establish a call center / BPO that they establish the BPO as a Private Limited Company or Limited Company under the Companies Act. This is because it is one of the criteria for obtaining OSP registration. Following is a list of services provided by BPOs:

• Customer support services: 24/7 inbound/outbound call center services that address customer queries and concerns through phone, email and live chat.
• Technical support services:  Installation, product support, running support, troubleshooting, usage support and problem resolution for computer software, hardware, peripherals and internet infrastructure.
• Telemarketing services:  Interacting with potential customers and creating interest in the customer’s services/products. Up-selling, promoting and cross-selling to existing customers and completing online sales processes.
• IT help desk services: Level 1 and 2 multi-channel supports, system problem resolutions, technical problem resolution, office productivity tools support, answering product usage queries and performing remote diagnostics.
• Insurance processing:  New business acquisition and promotion, claims processing, policy maintenance, and policy management.
• Data entry and data processing: Data entry from paper, books, images, e-books, yellow pages, websites, business cards, printed documents, software applications, receipts, bills, catalogs and mailing lists.
• Data conversion services: Data conversion for databases, word processors, spreadsheets and software applications. Data conversion of raw data into PDF, HTML, Word or Acrobat formats.
• Bookkeeping and accounting services: Maintenance of the customer’s general ledger, accounts receivables, accounts payables, financial statements, bank reconciliations, and assets/equipment ledgers.
• Form processing services: Online form processing, payroll processing, medical billing, insurance claim forms processing and medical forms processing.
• Online research:  Internet search, product research, market research, surveys, analysis, web research and mailing list research.

How to Start a BPO?

If you want to start a BPO it is important to understand OSP. OSP stands for Other Service Providers referring to the service provided in the Telecommunication Industry which uses telecom resources and it is mandatory for them to register for DOT OSP License. It involves BPO/call centers, e-commerce, telebanking, telemedicine, tele-education, and other IT enabled services. Department of Telecommunication under the New Telecom Policy (NTP) 1999 made it compulsory for OSPs using telecom resources to obtain an OSP License.

In February 2000 the Telecom Commission formulated terms and conditions with regard to OSPs. According to the terms and conditions OSPs should not provide switched telephony and are allowed to take telecom resources from authorized Telecom Service Providers only. Department of Telecommunication provides registration to telecom resources providing an array of services, which includes services like telebanking, call center and other IT enabled services.

Legal Documents required for registration

In order to obtain an OSP Registration, to start a BPO it is mandatory for the entity to be a Private Limited Company. Following documents are necessary for OSP Registration in addition to the application in the prescribed form:

• Certificate of Incorporation of Private Limited Company

• Memorandum of Association (MOA) and Articles of Association (AOA)

• Board of Resolution or Power of Attorney authorizing the authorized signatory

• Name of Business and Activities Proposed

• List of Directors

• Present Shareholding

The above documents must be certified with seal by a Company Secretary or Director of the Company or Statutory Auditor or Public Notary. 

Related Article : Steps to start BPO in India

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