Business Process Outsourcing Overview

Business Process Outsourcing, or BPO, is for non-essential day-to-day business procedures and tasks, such as human resources, document management, payroll, and some customer services. Companies outsource these tasks to Business Process Outsourcing entities. Outsourcing non-core activities allows companies to focus on their core businesses and streamline costs. Business process outsourcing is the contracting out of such tasks to third-party service providers.

BPO services can be divided into two categories. The first, back-office outsourcing, includes the outsourcing of internal business procedures such as billing, purchasing, and payroll processing. The second, front-office outsourcing, includes tasks such as customer-related services and support and technical support.

Business Process Outsourcing Frequently Asked Questions

With BPO becoming a popular alternative for many multinational corporations, where are these tasks being outsourced to?

India and the Philippines have benefited greatly from the trend towards BPO. In India, the business process outsourcing industry has grown significantly given the country’s relatively inexpensive labor, technology-related talent and base of English-speaking workers. In the Philippines, business process outsourcing is now a rapidly-growing industry, led by the demand for offshore resources in areas such as customer care, medical transcription, animation, and shared services. The English proficiency of many Filipinos is a major factor in the growth of BPO in the Philippines.

What is “homeshoring”?

Homeshoring can be thought of as a combination between telecommuting and business process outsourcing. Homeshoring uses home-based workers who work from home through an internet connection. As with a BPO worker, the recipients of the home-based workers’ services typically do not know that the person is not located in an office.

What does it mean to have been “Bangalored”?

Bangalored is an expression that means being laid off in the context of business process outsourcing. Given the significant number of jobs being outsourced to the city of Bangalore in India, the term refers to a person losing his or her job that was outsourced to India.

What are the advantages and drawbacks for a company when considering outsourcing some of its tasks?

By outsourcing some of its non-core businesses, a company is able to free up financial and human resources for its core businesses and to streamline costs. One disadvantages to BPO is the quality-control issue, as a third party vendor manages the people and resources involved in the particular task being outsourced.

Similar Pages on Biz-Guru.net

Call Center
Matched Category: Outsourcing
URL: www.biz-guru.net/c/call_center

Other Business Process Outsourcing Information Sources

Business Process Outsourcing
Source: Wikipedia.com
URL: http://en.wikipedia.org/wiki/Business_process_outsourcing

Business Process Outsourcing
Source: Forbes.com
URL: http://www.forbes.com/bow/b2b/industry.jhtml?id=38

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