Outsourcing ServicesBusiness Process Outsourcing
Business Process Outsourcingy
Business process outsourcing is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace.BPO is often divided into two categories: back office and front office .A back office outsourcing which includes internal business function such as billing or purchasing and front office outsourcing which includes customer-related services such as marketing or tech support.
Business process outsourcing is the delegation of back office business function to outside vendors that can take that function and perform them in a manner that provide cost savings, increased efficiency, and strategic value. The outsourcing of business function has been an accepted practice in the marketplace for many years now.BPO differs from traditional outsourcing in that vendors work with their clients to re-engineer their business processes to obtain maximum value and efficieny, in effect creating a strategic partnership.
Business process outsourcing advantages are business process speed and efficiency are enhanced. Employees may invest more time in core business strategies to bolster competitive advantage and enhance value chain engagement.organiational growth increases when capital resource and asset expenditures are not required, which averts problematic investment returns.oranizations are not required to invest in unrelated primary business strategy assests,facilitating a shift in focus to specific competencies.
Business process outsourcing risks include data privacy breaches, underestimated running costs, overdependence on service providers. It also has poor quality control, decreased company loyalty, lengthy bid process, and loss of strategic alignment.