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Business
Process Outsourcing — BPO
Business Process Outsourcing - BPO is
the act of delegating in-house
operations or processes to a third
party. These responsibilities initially
could have been an internal service or
an existing system. Companies outsource
to achieve cost savings which may occur
when the cost of living is lower in the
outsourced country.
There are 2 types of Business
Process Outsourcing - BPO
- Front Office
- Back Office
Frequently, Business Process Outsourcing
- BPO is also referred to as ITES -
information technology-enabled services
as most of the processes include some
form of automation. The concept of
Business Process Outsourcing - BPO grew
out of a need to focus on cost reduction
and service improvement. Thus, the
services transferred are essentially non
critical non-core activities leaving the
organization free to manage the brand.
The
main motive behind Business Process
Outsourcing - BPO is to allow the
company to invest more time, money and
human resources into core activities and
building strategies, which fuel company
growth. It helps free up a company’s
capital and reduce costs besides
allowing the company to save on
recruitment, training and other human
resource costs it would otherwise have
to maintain internally.
The usual customers for Business Process
Outsourcing - BPO are large
organizations looking to enhance focus
on their core business. Suitably
executed, it presents organizations with
an opportunity for radical improvement,
not simply more of the same at a lower
cost.
Business
Process Outsourcing - BPO Evolution
By analyzing and understanding its value
chain, an organization can focus on the
elements that are core to its business
and outsource others, while maintaining
overall strategic control. By pushing
more of the day-to-day functions into
the hands of independent specialists,
the board frees up brain space to focus
on making the core business different –
and better.
Business Process Outsourcing - BPO that
is contracted outside a company's own
country is many a times referred to as
offshore outsourcing. Business Process
Outsourcing - BPO that is contracted to
a company's neighboring country is
referred to as nearshore outsourcing,
and Business Process Outsourcing - BPO
that is contracted with the company's
own country is referred to as onshore
outsourcing.
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