Business Process Outsourcing – BPO

1. Business Process Outsourcing – BPO Business process outsourcing is the order of the day and it’s one field that is growing day by day and rapidly gaining momentum and worldwide recognition. As the BPO momentum keeps shifting rapidly, one will be forced to ask, what exactly is a BPO? A BPO is a subset of outsourcing that involves contracting the operations and responsibilities for a particular business process to a third-party service provider. Generally speaking, BPO is a task that a company may need, but is not dependent on it totally. This is mostly done to save costs. The discipline covers a very wide area and has a lot of areas to look into and talk about, especially if one desperately wants to have a firsthand knowledge of what BPO really stands for. Business Office Services These services can be categorically divided into two main components, which encompass the whole BPO process. One is the back office outsourcing while the other is the front office outsourcing. • Back office outsourcing - Back office outsourcing includes different tasks like data management, data entry, payment processing, surveys, accounting support and not forgetting quality assurance. This process is essential and a very important necessity if a company is determined to keep its foot on the gas and running effectively and effortlessly without much glitches and hindrance. Front office outsourcing - This includes specific services like e-mail, fax, telephonic conversations and many other forms of interaction that makes communication and interaction easy and seamless with customers. Lots of companies will basically outsource businesses process outsourcing services in customer support or service, market research, inbound and outbound sales, technical support and appointment scheduling. • Business Process Outsourcing (BPO) Solutions and Options The business process outsourcing services can be divided into three major parts, which are Onshore Outsourcing, Offshore Outsourcing and the Nearshore Outsourcing. • Onshore Outsourcing - It can also be termed as domestic outsourcing. It is a method of achieving services from someone outside the company, but a person within the same country. Offshore Outsourcing - It is a kind of business process outsourcing, which exports information technology work from international organization such as the United Nations Organizations and other developed countries to areas across the world where you will see both political stability and reduced labor costs or even savings. Nearshore Outsourcing - Nearshore Outsourcing services are the services, which are performed on work done by companies or contractors in neighboring countries rather than people in your own country. • • BPO is generally referred to as information technology – enabled services because it relies basically on technology that enables external companies to efficiently perform their roles. BPO is greatly admired by quite a number of firms and companies are often drawn to it because it affords them greater operational flexibility. By outsourcing non-core and administrative functions,

2. companies can reallocate time and resources to core competencies like customer relations and product leadership, which untimely results in advantages over competing businesses in its industry. BPO offers business access to innovative technological resources they might not otherwise have exposure to. BPO partners and companies constantly strive to improve their processes by adopting the most recent technologies and practices. Since the United States income tax is among the highest in the developed countries, American companies benefit from outsourcing operations to countries with lower income taxes and cheaper labor forces as viable cost reduction measures. BPO also tends to offer the companies the benefits of quick and accurate reporting, improved productivity and the ability to swiftly reassign its resources if and when it is needed. While there are many merits of BPO, there are some downsides too. A business that outsources its businesses processes may be prone to data breaches, communication issues that delay project completion, and they may underestimate the running costs of BPO providers. The advantages obviously outweigh its minor disadvantages. The merits of BPO include: • Attention towards your business - Quite a number of entrepreneurs that seek business process outsourcing services are in search to expand their recent products as well as services. But somehow, they do not have any time or resources to make it happen. In this context, BPO services can go a long way to offer a perfect opportunity to the organizations, so as to free up the time and pay attention to their basic offers. Lesser costs - Firms looking to build a form of integrity for their company need to look no further than BPO, as it can help to provide a financial strategy to the organization. This cuts the costs for the company without losing the much needed quality, which will hasten their quest to be regarded as one of the leading players in their industry. Improved productivity - Due to their vast experience and excellent work rate, BPO companies have worked on their craft, making it easy for them to fetch the best from their employees and achieve the best result. • •