BPO or Business Process Outsourcing refers to the
rearrangement of entire business functions to some other service
providers, mainly in low cost locations. The service provider may be
either self-owned or a third party. This relocation or contracting out
of business processes to an outside provider is mainly to achieve
increased shareholder value.
Some of the general services provided by the BPOs are Receivables and
Payables, Inventory Management, Order Processing, Budget Analysis, Cash
flow Analysis, Reconciliation, Data Entry, Payroll Processing,
QuickBooks Accounting, Financial Statement Preparation and Accounting
Services. Some of the web based services include live online sales and
order entry, E-commerce transaction support, Live online enquiry
handling, Web Design/Development
Here it is important to note that though BPO may include both IT
management and business operations. Business operations include
relocating functions such as payroll, accounting, billing or even real
estate management to a third party. Invariably all these business
processes depend on IT but they are separate from hard-core IT
operations like data center activities or network administration. An
important facet of business process outsourcing is its ability to free
corporate executives from some of their day-to-day process management
responsibilities and duties.
BPO (Business Process Outsourcing) involves business process management
and outsourcing. Business process management uses technology aimed at
redesigning the process, reduce unnecessary steps, and remove
redundancies. On the other hand outsourcing uses expertise and resources
of dedicated outside service providers to perform many of these vital
yet non-core activities. BPO performs both the functions at the same
time, thereby speeding implementation and ensuring that the intended
benefits really hit the bottom line.
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Business Process Outsourcing |