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Career Development Centre (CDC) => Business Process Outsourcing (BPO) => Topic started by: Reyed988 on March 30, 2019, 03:16:25 PM

Title: Business Process Outsourcing (BPO)
Post by: Reyed988 on March 30, 2019, 03:16:25 PM
Business Process Outsourcing (BPO)

Business process outsourcing, or BPO, is a business practice in which one organization hires another company to perform a task (i.e., process) that the hiring organization requires for its own business to successfully operate.

BPO has its roots in the manufacturing industry, with manufacturers hiring other companies to handle specific processes, such as parts of their supply chains, that were unrelated to the core competencies required to make their end products.

However, organizations in other industries adopted the practice through the years. Now, the use of BPO has expanded so much that organizations of all kinds -- for-profit businesses, nonprofits, and even government offices and agencies -- contract with BPO service providers in the United States, throughout North America and across the world to perform numerous processes.

According to the BPO Services Global Industry Almanac 2013-2022 released in May 2018, the overall BPO Services sector generated revenues of $144.9 billion in 2017.

What BPO is used for


Organizations engage in business process outsourcing for two main areas of work: back-office functions and front-office functions.
Organizations can outsource a range of back-office functions (also referred to as internal business functions) including accounting, IT services, human resources (HR), quality assurance (QA) and payment processing.

Similarly, they can outsource various front-office functions, such as customer relation services, marketing and sales.

Organizations can also outsource specific functions (i.e., payroll) in those areas in addition to outsourcing an entire functional area (i.e., human resources).

Types of BPO


Because companies around the world provide BPO services to other organizations, BPO can be divided into different types based on the service provider's location.

 
Business process outsourcing is also sometimes referred to as information technology-enabled services, or ITES -- a name that recognizes that IT infrastructure enables outsourcing to happen.

KPO, LPO and RPO

Business process outsourcing is also sometimes categorized by the types of services being provided. The three prevalent categories are:

 
Benefits of BPO

Organizations engage in business process outsourcing because they expect to benefit from the arrangement.

The benefits typically cited by proponents of BPO include:

 
Risks of BPO

In addition to expecting anticipated benefits, organizations engaged in BPO also take on potential risks and drawbacks. Those potential problems include:

 
Future directions


The practice of business process outsourcing could be at least partially displaced in upcoming years by technology.

Robotic process automation (RPA) and artificial intelligence (AI) can handle some of the business processes now frequently outsourced, and these technologies can often perform those functions at lower costs and higher speeds.

However, not all processes are easily automated; moreover, a service provider may be in a better position to utilize those technologies to automate its service offerings than organizations are, thereby helping the BPO provider retain its appeal to organizations looking for the best way to handle business functions.

Source:https://searchcio.techtarget.com/definition/business-process-outsourcing
Title: Re: Business Process Outsourcing (BPO)
Post by: tasnim.ete on June 23, 2019, 04:27:58 PM
helpful post