• Business process outsourcing

Topics to be covered:-

• Meaning of BPO
• Types of BPO
• Advantages of BPO
• Disadvantages of BPO
• Services provided by BPO
• How To choose a BPO provider
• Outsourcing survey
• Which country is ranked as the highest in bpo industry
• Conclusion

Meaning oF BPO

A business process refers to a set of activities or tasks that are carried out in order to complete a specific business goal. These processes can be core to the business or they can be support processes.

Often businesses delegate  specific processes to third-party organizations to focus on their core competency or to reduce costs. This process of outsourcing business processes is known as Business Process Outsourcing (BPO).

• A new type of business activity has come into being in the last 15 years. It is the practice of getting some business activities being got done by outside agencies. This process is called Business process outsourcing. �For example:- A company would hire advertising agency for designing advertisements or for carrying on advertisement campaign.

Types of Business process outsourcing

• Offshore:- It refers to outsourcing in a far away country. It is the most challenging and the most rewarding type of outsourcing.

• Onshore:- In this outsourcing the services are obtained from the company that is within the same country.

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• Near shore:- This refers to outsourcing in countries that are located close to the contracting company. Some of the benefits of Near shore types BPO's are provided below:�
• Companies can outsource to countries with lower wages rates thus this can help companies reduce their operational costs for works like telecalling operations.
• These companies can get access to a wide talent pool of specialized professionals through these offshore locations.
• By outsourcing certain tasks, companies can focus on their core competencies and increase efficiency and productivity.

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• Back Office Outsourcing Services: Back office is a service that does not interact with the customer. Back office types of business process outsourcing includes IT services, human resources, quality assurance, accounting, etc. The data entry roles like updating records or processing forms outsourcing can also be counted in back office.  Back office services include tasks like sorting, organizing and validating data.
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• Front office Outsourcing:- Services includes roles such as customer facing tech support, sales service, and internal marketing functions like social media marketing. Outsourcing is necessary for certain tasks that require technical expertise. The roles which involve interaction with people and are apart of Front Office.

• Advantages of BPO:-

• Productivity improvements
• Optimum utilisation
• Reduction in cost
• Improved human resources

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• Productivity improvements:- Educated or skilled workers perform the task efficiently and thus improve productivity.

• Optimum utilization:- BPO enables the optimum utilization of scarce resources.

• Reduction in cost:- cost saving can be significant to any business. BPO not only helps to reducing cost but also increase productivity and increase revenues.

• Improved human resources:- Improved human resources is another great advantage of BPO. Outsourcing gives a company the ability to get access to skilled and trained man power at low rates.

• Disadvantages of BPO:-
• Communication problem
• different time zones
• Loss of control:-

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• Communication problem:- There can be communication gap between the client and the vendor companies due to misunderstanding and miscommunication.

• Different time zones:- The client and the vendor operates in two different time zones. The difference in time can create many problems during online meetings, communication etc.

• Loss of control:- Due to communication errors ,time differences Client company can at times lose control of the project.

• Services provided by BPO:-

• Financial services
• Banking services
• Advertising services
• Customer support services
• Health services
• Insurance services

• How to choose A bpo provider:-

• Enterprise executives Should select bpo providerS who can Support their business objectives ,as well as Help them be more aGile,flexible, Faster and more competitive.
• They must also consider how Well the provider can deliver on those other points,evaluating Each provider To determine Whether it has the following:-

• An adequate understanding of the organization’s business and the industry ;

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• The capacity to meet the current requirements As well as scale to meet future needs;
• The geographical Locations to Meet business needs.

Outsourcing survey:-

• In 2020 Global outsourcing survey , Delloitte found that companies use BPO to meet the following Objectives:-
• Cost saving, cited by 70%of enterprise leaders surveyed
• Flexibility, cited by 40%
• Speed to market, 20%
• Access to tools and processes, 15%

Which country Is ranked as the highest In the bpo industry:-

• India ranks highest in the BPO industry, followed by china and Malaysia. BPO services are doing well in the Indian market because india has many talented professional who are highly qualified in speaking English and are the ones who work hard even at lesser payout.

Conclusion:- In conclusion, the use of business process outsourcing is a real growth lever for the company, lower cost,flexibility, access to skills that it does not have time saving and productivity …but it must be thought through.

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