SM BPO and Personal Service Outsourcing (PSO)

SM – BPO and Personal Services Outsourcing (PSO) System & Networks.


Author: P. Abraham Paul: Ex-MD & CEO Future Groups (India), FCOMNET (UAE).

Personal Services Outsourcing (PSO). 

BPO business has become a behemoth and therefore, beyond the scope of both small business Customers and Individual professionals who need to outsource their business processes. Low end Outsourcing companies were finding it difficult to get business due to various reasons.

However, with worsening unemployment situations in developed countries, the consistent political pressure to reduce out sourcing, added with the recent financial crisis across the world and rupee devaluation, big BPO business in India is going through big crisis.

This is the time for small business entrepreneurs to start “Small & Medium Business BPO” (SM-BPO) that is affordable to SMEs, SMBs, and “Personal Services Outsourcing” (PSO) Networks for Institutions, freelancing professionals and Individuals.

By suitable networking, the SMBPO & PSO Company can provide service to large volume of clients distributed across many towns, villages across large area. Individually each contract may be of low value but the income potential is very high from enormous client base.

The clients will be of varied profile and needs, their requirements diverse and varying in terms of conditions and durations. Therefore, the SMBPO & PSO providers also shall be flexible and capable of handling diverse and varied nature of business from customers widely distributed across the world.

Method of working of  SM-BPO and PSO:

Outsourcing activities of SM-BPO will be same as BPO but a low profile and low volume that can be handled by about 20 to 30 personnel, many of them can work from their homes.

Method of working of PSO Network:
PSO  is envisaged to provide varied services other than covered under SM-BPO  for CUSTOMERS which are Small business units, Institutions, professionals or individuals, from anywhere in the world as a direct “CUSTOMER” or for their relatives/friends as “End Clients”.

PSO agents:

PSO provider sets up a network of PSO agents across various cities, towns and villages. The agents shall be persons:

–          of integrity, good conduct, quality consciousness, pleasing nature and friendly attitude towards Customers.

–          good knowledge of the locality and contacts of the area covered and preferably has vehicle for commutation.

–          Having facility for round the clock access and communicate over fixed/mobile phones and internet.

–          Capable to independently arrange himself, the expenditure required, about Rs. 5000/- to Rs 10,000- temporarily on a short term basis for providing service locally and take the amount later from the firm along with agent’s commission. Where expenses involving above this limit, will be arranged through nearest PSO company representative.

–          Preferably owning own transport arrangement. A Car to work as on call Taxi.

–          Can open a current account preferably in a branch of the Bank the PSO company’s business bank.

PSO agent commission: (Amounts and values mentioned are Hypothetical and for explanatory purpose only)

Will be based on the Service Charge agreed between the company and the Customer time to time, and on a case-by-case based on the overall business case. For example, the agent  could get as commission about 50% to 70% of the basic service charge levied from the customer by Company.

The agents shall be assured of a minimum payment, say Rs.150/- for every completed transaction even for a low value transaction.

For transactions made in foreign currency, the Service charges and Agents commission based on the prevailing exchange rate. (US$ equivalent will be taken for other foreign currencies)

Travel expense of agents:  A local area will be defined for every agent. Travel expense within the local are is to be borne by the agent. For the service delivery outside the defined local area of city/town/village limits, travel expense shall be eligible which will be paid at actuals or as quoted and agreed in advance for each transaction.

Travel expense outside the local area will be charged to the customer and paid to the agent in addition to the eligible commission.

The percentages of commission and travel expense refunds mentioned above shall be kept as tentative and will be reviewed as the business grows.

Additional benefits to be given to agents for expanding customer base and business in their area.

and the PSO provider on line over internet or by exchange of e-mails/FAX.

PSO services: On behalf of the CUSTOMER, the PSO provider organises locally and carries out the business services and personal jobs or services according to the contract.

Example: On request from the Customer, the following personal jobs and services are organised and delivered according to pre-agreed charges on a pre-paid basis.

  • Payments to Utility service agencies, educational or other institutions.
  • Purchase and delivery of white goods, Personal Computers/ Automobiles,  and other items and arranging its local servicing.
  • Home delivery of food and grocery items.
  • Supply of Fruits & Vegetable packs to homes (on a daily basis along with news paper in the morning)
  • Procure and delivery of presentation items, Gifts, ornaments/ jewellery/ confectionary/ garlands/ bouquets etc., on festivals or other occasions:
    The items shall be procured by the PSO provider according to the Customer’s specification/prizing needs and delivered to the person at the time and location as needed by the customer.
  • Tours and Travel bookings / travel ticketing, hotel reservations, arranging transport, boarding and lodging and sightseeing trips etc. through recognised agencies for the customers or for their clients.
  • Arranging Taxies or other transport on call for short term needs of clients. A network of Taxi service, on call,  any where, any time, safe and secure and at competitive rates. #UBER
  • House moving.
  • Small Package  simple & Low cost ERP supply and services.
  • Business and Personal Accounts: Day to day account keeping, / book keeping, budgeting, periodic and annual returns & balance sheets preparation for small entrepreneurs and Start-ups.
  • Business & Personal Data: entry, storage, daily upgrades and warehousing.
  • Software: debugging, re-structuring and archiving.
  • Transcription jobs for medical, legal and other professionals.
  • Preparation of Legal documents, Partnership deeds, Power of Attorney, MoUs, Financial deeds, Property deals, Wills etc., for the customers or for their family members/ children/friends.
  • Business know how, Technology & Marketing support.
  • On-line teaching and learning support of Students from within the country and abroad.
  • Acting on behalf of Customers or their clients with local authorities, banks and other institutions, and dealing with them as far as it is within legal premises and concur with RBI and other regulatory provisions.
  • Legal consultancy.
  • Obtaining transcripts, attestations, birth certificates etc. from institutions and legal authorities.
  • Franchisee and approved Money changers:  Physical currency in wallets to Virtual Currency in e-wallets and vice versa as  Money going Virtual.
  • Providing online over Mobile Phones Microfinance support to friends and know people at low interest rates by Housewives sitting at home.

– – – – And many more possibilities, options and opportunities.

Customer interactions with PSO company: CUSTOMER, who is in need of the service, accesses the PSO provider by e-mail, phone/FAX and registers his name.  All job/service legally allowed and executable in the country on a case-to-case and occasional or regular basis with long-term agreement shall be under the scope of the business. An understanding is reached and a contract made out between the Customer and the PSO Company. 

How to go about:

Requisition format: For every transaction a requisition format is downloaded from the company’s internet site. The format can be filled online and then sent to  the company using e-mail.

For major transactions, hard copy of the request format needs to be send to the company’s postal address.  

Payment request: Company replies back details of service offered and payment required for the requested service, on the same format. An account number and a transaction number are allotted and entered in the requisition format for further reference.

Payment through bank: Customer has to send payment in advance for the service asked for to the ‘Current Account”.

Mode of payment: Quick transactions with minimum transaction charge can be made from abroad with AMEX service using Banks ‘SWIFT’ facility payable to the company’s Current Account. When the amount is credited Bank sends a credit alert to the company. 

Payment information: CUSTOMER sends back the form with details of payments made and specific instruction, or change request, if any, about the service.

Delivery of service: Company provides the service requested through its agents in various locations.  Agents report service delivery and Company sends service confirmation and payment details to the customer.

Payment adjustment: Customers who need regular service of PSO company shall be given a current account in the company.

The actual payment amount will be intimated and the difference adjusted and balance if any will be retained in the Customer’s account for further service or returned to the bank account of the Customer.

Agent’s payment: On satisfactory acknowledgment of service delivery from the customer, Company requests Bank to release payment to the agent. 

Declaration:  (Company name) a Personal Service Outsourcing business company hereby solemnly declare that the firm will not enter in any illegal transactions and mediate any form of direct money transaction between the customers and the end clients.  Company shall collect and retain only service charges for the services rendered.

Abraham Paul. P.

Owner Future Communication Network (FCOMNET) Freelance ICT Consultant, Ex: Vice President (TS) SPCNL India, SIEMENS ICN / Director Trg, SC  & TS, SIENENS RHQ Dubai / G M & SMT TBG, BPL Mobile India / TES (A) DOT India.


About Abraham Paul

Vision & Objective: Telecom has always been the passion of my life. After 60 years of outstanding career and many personal contributions to the industry, I still have same urge, and desire to give back to the industry, the abundant experience, knowledge and potential acquired, by providing consultancy service to forward looking enterprises and entrepreneurs in Legacy and New generation Telecom & IT in the areas of Business Management, Technology, Engineering and Services. Apolitical and religiously unbiased.
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