Business Process Outsourcing

What is Business Process Outsourcing?

Business Process Outsourcing, also known as BPO means to allow a part of the business’s operations to the external service providers on a contract basis. It is essential to be aware that only the non-core activities of the businesses are outsourced. It is done with the motive of saving time, resources, and money for the management as well as driving the strategic objectives of the company.

Here are some of the examples of how various sectors process BPO;

• Human resources - Mainly for payroll and recruitment.
• IT sector - For desk administration and network services.
• Marketing - For research and branding
• Legal services - For registration of trademark
• Human resource consulting - For job placements

Frequently Asked Questions about Business Process Outsourcing

What are the different types of BPO?

There are three types;

• Local outsourcing
• Off-shore outsourcing
• Near-shore outsourcing

What is the difference between outsourcing and BPO?

Outsourcing is whenever an organization involves a third party or a vendor to handle and manage the particular operations. Whereas business process outsourcing is one kind of outsourcing, the company contracts a third party to perform the non-primary business activities of the company.

What are the merits and demerits of BPO?

The merits and demerits of BPO are mentioned below;

Merits:

• Flexibility
• Cost-effective
• Speed
• Skilled workforce

Demerits:

• Communication issues
• Time zones can differ
• Loss of control

Explore Other Related HR Terms