Business Process Outsource (BPO) is defined as
giving the third-party the role and responsibility of running the service to take advantage of economic scale by doing the same work for the companies.
(BPO) is put into service as a way of cost-saving measures. There are two types
of BPO, one of them is called the back
office outsourcing. This is where internal business functions belong, this
type of BPO is dealing with billings and purchases. The second type of BPO is
called front office outsourcing, this
is where customer-related services belong such as marketing and technical support. Every now and then, Business Process Outsourcing (BPO) is contracting
outside of its company's own country and this is called offshore outsourcing. On the other hand, if a BPO is contracting to a neighboring
country, it is called nearshore
outsourcing. BPO that is only contracting within its company's
own county, it is called onshore
outsourcing.
The function of BPO as opposed to ASP or Application Service Provider usually means that there is a definite
amount or risk shifted to the company that is running the process.
Typical ASP only contains the provision of access to functionalities and
features provided. Moreover, BPO includes the software, the process
management, and the people operating the
service. The most important motive of BPO is to let the company spend more
time, and maximize the human resources into core activities and building
strategies, which fuel the company's growth. Today, global market is extremely
competitive and constantly changing. A company must concentrate on improving
productivity and at the same time cut down costs. As a result, a lot of
development that takes up valuable time and resources are being outsourced. BPO
companies are regularly considered to provide more flexible, much faster, cheaper
and successful services.
