BPO which is expanded as Business process outsourcing is defined as a business practice in which the process task has been carried out by one organization that will hire another company in which the hiring organization requires for its own business to operate successfully. Business Process Outsourcing has its base in manufacturing industry where the manufacturers will hire the other companies. They will handle the specific processes, such as the parts of their supply chains unrelated to the core competencies that are required to make their end products. BPO services have been extended throughout North America and across the world to carry out numerous processes.
The organizations that involve itself in Business Process Outsourcing in two major areas
- Back Office Functions
- Front Office Functions
Back Office Functions which is also referred to internal business functions will include accounting, information technology, and human resources. It also covers up Quality Assurance and Payment processing. Front Office Functions includes customer relationship services, sales and marketing. In addition to these services, payroll and HR services are also taken care.
A business process is outsourced by arriving at the decision by the Organizational Executives through wide range of avenues. For example, the startup companies often need to outsource the backend operations and front end operations because , they might not have enough resources to build the functionalities in house, they might not have enough staffs and support functions to flourish it. On the other hand, well established companies might not need any functions to be out sourced. But the situation comes in when the company finds that the outsourced product can out stand the operations well comparing to what is already there at their end. Another factor that is involved is the security. The star up companies might not have the on premise servers, where they need to seek an out sourced servers to store their confidential and sensitive data. This means that the data needs to be secured enough to avoid breaching the trust of their clients. During such situations, the out sourced server should abide to all the security certifications, requirements and regulatory compliances and restrictions.
There are three different types of BPO services provided as follows
- Offshore outsourcing– when an organization contracts for services provided with a company in a foreign country, offshore our sourcing happens.
- Onshore outsourcing – Also called as domestic outsourcing, happens when the services provided by the company and the organization that needs it are operated in the same country.
The Benefits of Business process outsourcing are as follows
- Flexibility – Based on the changing market benefits, it allows the organization to adjust its contracts and the requirements.
- Competitive Advantages– BPO ensure to give a competitive support and challenging services compared to the in house operations to prove it’s need .
- Higher Quality and Better Performance- It ensures providing the better performance and high quality of services to the company to retain the customers and make a hundred percent satisfaction index.
Organizations generally receive a huge volume of varying document types from a wide range of channels which will be launched or continued to improvise the internal business processes. Many of them do not have standard processes in place for automating the collection of documents and processing of documents, by relying on expensive, error prone manual processes for scanning, extracting and entering data.
