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Wysłany: Sob 2:49, 19 Lut 2011
Temat postu: What is Business Process Outsourcing
BPO companies work in a similar fashion as a creative boutique. While they have a set of clients, their main revenue comes from work that is outsourced to them from larger companies and advertising agencies. Thus,
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Today,
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Business process outsourcing traces its history back to the 1800s. America used Scottish workers to help build wagons and ships,
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, thus outsourcing them. Another outsourcing practice is called ‘offshoring’,
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, i.e., when foreign countries perform BPO services. Popular offshoring countries include India and the Philippines, where skilled labour is much cheaper.
The objective of business process outsourcing is to typically reduce the workload on the company and also hope to cut costs by handing over the work to a third-party. Sometimes even the labour costs involved are different in different countries,
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, which is why several companies outsource work to far off countries. A good example of this would be a London based company outsourcing its brochure content work to India,
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, since the labour is cheap yet creativity and good-quality work is available in abundance.
Usually, there are two types of BPOs, front office and back office outsourcing. Back office processes that are usually outsourced are billing,
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, logistics and human resources. Nowadays,
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, even claims processing at insurance companies are being outsourced to separate companies. Examples of front office outsourcing include technical support,
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Business process outsourcing (BPO) is a subset of outsourcing and involves using a third-party,
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, contracted to perform specific,
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With the IT industry booming in India and people recognising the numerous strengths of India,
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, organisations throughout the world are outsourcing their services to outshore countries like India. It is also good to know that the Government of India has also taken positive steps and several initiatives to urge India into to recognising its true potential.
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