Business Process Outsourcing is the
process of outsourcing the business functions of an organization to a
specialized service provider. It is the non-core business processes that
organizations prefer to outsource.
With the growing advancements in
Information Technology over the past two decades, outsourcing has become a
vital part of every business. The biggest benefit of Business process
outsourcing (BPO) is that it allows the third party to perform the processes from
remote locations at lesser costs. BPO services generally involve
back-office operations. These operations include outbound services and inbound
services. Outbound services usually include operations like sales processes,
while inbound services involve handling processes like customer support and
technical support services.
The success of the BPO industry model has
led to several high-end services being included in the scope of services. It
includes legal process outsourcing, finance and accounting, design and product
development, healthcare, and a lot more.
Business
Process outsourcing is divided into two main categories:
- Back Office BPO- In back-office BPO, the professionals' internal business functions
like finance and accounting, human resources, and a lot more.
- Front Office BPO- In front office BPO, the professionals offer services related to
the customers, such as handling their queries and service requests.
Business process outsourcing offers you a
more flexible working environment that helps your business goals efficiently
while generating bigger profits. Moreover, it leads your organization to focus
on your core competencies and gain unimaginable heights. In most cases,
businesses first identify the business processes they like to outsource and
outsource them to the third-party vendor.
The major benefits of Business Process Outsourcing include:
Business Process Outsourcing has been
gaining popularity due to the benefits it offers to the organization. Here are
a few of the advantages of opting for Business Process Outsourcing:
●
Access to Skilled
Professionals
●
Flexibility
●
Agility
●
Cost-savings
●
Competitive Advantage
●
Improved Performance
What are the different types of Business Process Outsourcing?
Depending on the service provider’s
location, BPO is categorized into these:
- Offshore Outsourcing- When an organization outsources its process to the service provider
in a foreign country, it is called offshore outsourcing.
- Onshore Outsourcing- In onshore outsourcing, an organization outsources the process to
the provider within the same country.
- Nearshore Outsourcing- When the organization outsources the processes in the neighboring
country, it is called nearshore outsourcing.
In many places, business process
outsourcing is popular by the name IT-enabled services, also known as ITES.
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