Full form of BPO is business process outsourcing. BPO is a business practice in which an organization for operating their business successfully hires another company to perform tasks. The manufacturing industry is the roots of BPO in which other companies are hired by the manufacturers to handle the specific process. Now BPO has expended so much that every kind of organization (government agencies or offices, profit business and nonprofits business) has adopted this practice and they contact BPO service providers to perform numerous processes across the world.
Business process outsourcing is engaged by organizations in main areas of work which are back-office functions and front-office functions. Black-office functions include internal business functions such as human resource, quality assurance, information technology services and payment processing in short purchasing and billing. Front-office functions included customer-related services such as sales and marketing.
Types of business process outsourcing
There are a lot of companies which provide services of BPO so as per the service provider’s location it can be divided into different types:
Nearshore outsourcing- This practice involves services and work done by the people working in neighbouring countries.
Offshore outsourcing – In this type, the third party supplier is hired by a business to perform the tasks in another country rather than the country where he conducts his operations primarily.
Onshore outsourcing- In this type of business outsources their work to another company in the same country.
BPO is also many times categorized by the services which are being provided and those categories are as following:
Knowledge process outsourcing or KPO- When the outsource BPO service provider is hired to perform a specific business function or process. In this function hired company have to provide expert services.
Legal process outsourcing or LPO- as the name only defines that it is related to legal services. It is the type of KPO which is ranging from the legal documents to legal research. They are hired to offer legal advice.
Research process outsourcing or RPO- This type of KPO refers to the analysis and research functions, investment firms, marketing agencies and biotech companies which are among the type of organization which could engage in RPO services.
Benefits of business process outsourcing
Availability of experienced professionals- There is a huge hassle in recruiting new employees and It cost huge to train them. So to avoid problems and troubles they hire to establish a company to perform their tasks.
Cost reduction- For saving money and to cut costs, business outsources their business process. This is one of the main reasons behind outsourcing. BPO raise the talented employees which are available at low wages which results in better revenue for the company.
Focus on core business- With outsourcing their some tasks they get time to focus on the core of the business. This practice helps them to make them work better and help to make the best decisions for the business.
Customer feedback- BPO is an excellent source for getting customer feedback for the product and service of the company. Their direct contact and customers first-hand feedback helps the company to improve work in a better way.
Job opportunity- BPO provides the highest job opportunities, so they generate huge employment every month. This industry provides the best remuneration to the employees and this is the major reason for the youngsters to work in BPO.