BPO full form is business process outsourcing and is the process of sending a company’s operational tasks to an external provider. This is done in order to achieve more efficient outcomes and ensure that there are no overlapping or redundant processes within the company.
BPO is based on a model of risk-sharing between the client and the outsourcer. This means that both parties share in the risks and rewards of any decisions made during contracting negotiations and throughout the life cycle of the contract.
There are many different types of services that can be outsourced such as human resources, IT, accounting, marketing, and customer service.
There are three main types of BPO:
1) Process outsourcing – This involves the transfer of business processes (such as payroll) to an outside organization.
2) Project outsourcing – In this case, one company outsources a project to another company, such as the development of software systems or marketing collateral.
3) Facilities outsourcing – This type is where one company provides facilities (such as office space) for another company’s use on a full-time or part-time basis
Business process outsourcing falls under three categories:
1. Information technology (IT) – This type of BPO involves IT operations such as customer help desk services and data processing.
2. Business management services – These are all the non-core functions that fall under human resources, finance, accounting, and marketing departments. Examples include payroll processing and document management services for HR departments; financial reporting for accounting departments; and lead generation for marketing departments.
3. Knowledge Process Outsourcing – This is BPO that outsources knowledge work such as research projects and testing activities like copywriting or data entry work to other countries where labor costs are cheaper than