BPO Explained

Business Process Outsourcing

Business Process Outsourcing is a form of outsourcing that involves the contracting the operations and the responsibilities of specific business functions to a third service party provider. It is also the process of hiring another company to handle business activities for you. They invite or hire other company or companies to emerge business with them particularly IT services. Back office outsourcing which business process outsourcing categorizes includes business applications such as human resource, finance, and accounting. Front office outsourcing includes customer service such as contact center service.

Offshore Outsourcing is the term applied for contracted busness outside company and near shore outsourcing is a contracted to a company's neighboring country. Business Process Outsourcing is also referred as ITEs or Information Technology -enabled services, knowledge process outsourcing and legal process outsourcing. business Process Outsourcing helps increase family's flexibility.

Business Process Outsourcing benefits and limitations offers fee-for-service basis helps the company becoming more flexible by transforming fixed into variable cost. Also helps able to focus on its core competencies. They can invest more time and energy by focusing on customer intimacy, product leadership or operational excellence. Increase organizational flexibility by increasing speed of business process. Flexibility is seen as a stage in organizational life cycle. Risk is the major drawback with business process outsourcing.