Business process outsourcing. Initially, it was driven by foreign companies that shifted work to India to save on labour costs. But with time, it has thrived and evolved. Now, a number of Indian companies too are farming out work to specialist outfits to keep expenses down. These outfits comprise the 'domestic BPO' sector.(BPO) contains the transmission of processes along with the associated operational activities and responsibilities, to a third party with at least a guaranteed equal service level and where the client contains a firm grip over the (activities of the) vendor for mutual long term success. BPO is positively related to the search for more efficient organizational designs: cost reduction,productivity growth and innovative capabilities. Hence, a source for strategic advantage.