What is BPO and what are advantages and dis advantages of BPO?
BPO stands for "business process out sourcing," and is better known as simply "out sourcing." It is basically the process by which a company can delegate certain functions of their business to a specialized organization who can get it done more cheaply, quickly, and efficiently.
- Cost reductions- Cost reduction is done through process improvements, reengineering and use of technologies that reduce and bring administrative and other costs under control.
- Concentration on core business- With the day-to-day back office operations taken care of, the management is free to concentrate more on the core business of the company.
- Outside expertise- Company is saved from the hassles of recruiting and training personnel. BPOs ensure that experts from another company provide the needed guidance and skills.
- Cater to changing customer demands- It is another great advantage of out sourcing the business processes. Many BPOs provide the management with flexible and scalable services to meet the customers' changing requirements, and to support company acquisitions, consolidations, and joint ventures.
- Revenue increase- As stated above, by outsourcing non-core processes, companies can concentrate on increasing their sales and market share, develop new products; spread out into new markets and increase customer service and satisfaction