BPO

Business process outsourcing (BPO) 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 outsourcing which includes internal business functions such as billing or purchasing, and front office outsourcing which includes customer-related services such as marketing or tech support.

IT’s growing role in BPO

Technologies such as cloud computing, business analytics software, social media platforms and process automation software are being used within BPO to enable businesses to lower costs and be more effective.

Recent research from Accenture revealed that high-performing BPO relationships – those that deliver business value – use technology as a source of innovation and advantage, rather than just providing the infrastructure of delivery. It found that 40% of high performers consider technology provided by the service provider to be an important component of the BPO relationship, compared with only 27% of typical performers. A total of 56% of high performers believe it is important to gain access to technology in a BPO relationship, while 34% of typical performers agree.

Why Business Embrace BPO in its Scenario

Business Process Outsourcing is an important aspect of any business strategy of major organizations worldwide. It is positively related to the crusade for more adroit organizational designs such as cost reduction, productivity growth and innovative capabilities. There has been a tremendous upsurge in BPO and outsourcing industry in many developing countries because of their BPO expertise in reducing costs while increasing service quality. Another great benefit of BPO is that it helps companies to focus on core areas. Companies generally use outsourcing for some processes such as: to relocate accountability and control costs. So, it is very important that the management is in better position to focus on core areas, and not to keep itself enthralled in other areas.

Advantages of BPO

Business Process Outsourcing is a subset of outsourcing that involve the contracting of operations and responsibilities of a specific business process to a third party service provider. The Outsourcing market is growing tremendously in the upcoming years with an increasing benefits.

Here are some advantages of BPO in any organization:-

1. Productivity Improvement

BPO enables to the corporate executive to concentrate upon core areas. Generally executive spend more time in management of details and they get very little time to codify strategies. It help to saves time and also help the executive to analyze revenue area, accelerate other projects and focus on their customer. This results increase in productivity, qualified or well skilled people perform the task effortlessly and thus improve productivity.

2. Impeccable Utilization of Resources

BPO utilize its resources very effectively, outsourcing help to capture new efficiency and relocate the resources. This increase the efficiency and productivity. Availability of skilled employees and adaptation of sophisticated technologies leads the productivity and business growth.

3. Cost Effective

Cost saving can be significant to any business. BPO not only helps in reducing cost but also increase productivity and raise revenue significantly. Cost reduction is possible through development process, use of technologies and re-engineering that will bring admin and other cost under control. Outsourcing helps the company to maintain the rates and caters best service solution.

4. Focus on Core Business Areas

If you want to take your business at the top, it is essential to adopt strong business strategies. BPO enables the top management level to hand over critical but non-core activities of the business to the third party. This facilitates management level to concentrate on the core business activities.

5. Ready to fulfill Customers Demands

Several BPOs provide the management with flexible service to meet the customers' changing requirements and to support company acquisitions, consolidation and joint ventures.

6. Latest Technologies at Lower Cost

Technology is leading area of outsourcing, with the help of this one can do their work of modern organization with an ease. Investigation in new technology is very costly often risky. As the technology market develops rapidly, it is difficult to keep pace with the latest innovation and solution. So, it is better to choose an outsourcing for your company who has proper resources, well expertise and covet to increase your business growth.

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