Outsourcing is refer to the process of one company dealing with another company to provides services to their clients and manage business operations such as data entry, payroll and billing. Outsourcing can be classified to different categories, the Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO) and IT Enabled Services (ITES). Nowadays, outsourcing is in demand now as it gives different advantages for businesses. Over the different categories of outsourcing, BPO or Business Process Outsourcing is one of the popular with business industry today. Let us take a deeper look of what Business Process Outsourcing really means.
BPO can be define as the process of hiring another company local or even in abroad to do business activities for you. This activities or business operations can be differ according to your business needs, usually an IT-related operations like data center operations, testing and quality assurance or application management and development, also it may involve finance, HR processes, call center, payroll, customer services and other various tasks.
Business Process Outsourcing procedure may be identified into two: the back-office outsourcing and front-office outsourcing. Back-office outsourcing involves the back-office responsibilities or internal business functions such as finance, accounting and HR processes. While, front-office outsourcing deals with customer related services and contact center services.
There are various types of business process outsourcing and these are:
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Call Centers
It is the largest and most common type of BPO services. Call center or contact center is an office that handles large number of telephone calls inbound and outbound. Call centers can be data cleansing, telemarketing and telesales or outbound calls and customer services or the inbound calls.
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HR or Human Resources
Companies need human resource services to hire new staff and manage new processes. Some benefits that HR can get from outsourcing are the development, recruitment and training of new staff, requirements for organizational personnel and provides disciplinary issues. Large companies with more than 1,500 employees usually tend to outsourced HR, as they cannot handle all of its personnel.
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Procurement
Procurement is the responsibility of the finance department. they have to deal and find the proper suppliers. Company can benefit with the outsourced procurement, it can process requests of information and they can recommend the potential suppliers, and they can implement right procedures. Aside from that, they can monitor the performance of their supplier.
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Software Development
It is more effective to outsourced software developers than hiring full time developers because they can save money as the economy grows.
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Document Management
The document management system of a company will improve with the help of a third-party company, usually it is being held online. It helps to find informations easily, they also can retrieve and stored some data on a computer system and leads to saving of office space and at the same time saves time and money.
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Finance
It is the most essential functions inside the company, there are different tasks to do that’s why they need it to be outsourced, these are payroll, raising invoices and other finance work. If that is the case, they can just focus on other tasks that they have to do.
With the help of business process outsourcing, companies can now focus on their core competencies and they can contibute for the flexibility of the company. Apart from that it can help to fasten the business processes of the company.
REFERENCES:
http://www.differencebetween.net/business/difference-between-bpo-and-call-center
http://en.wikipedia.org/wiki/Business_process_outsourcing
http://ezinearticles.com/?BPO-101—Its-Real-Meaning&id=3870939
http://workathomemoms.about.com/od/telecommuting/g/BPO.htm
