Business Process Outsourcing Meaning
Business process outsourcing (BPO) is the contracting of specific business processes to a third-party provider. The third party is usually an organization that specializes in providing these services, and has the necessary resources and expertise to do so.
BPO services can generally be divided into two categories: back-office processes and front-office processes. Back-office processes generally include activities such as billing, accounts receivable, and order processing. Front-office processes typically include activities such as customer service, marketing, and sales.
BPO can be an extremely cost-effective way for businesses to outsource certain processes. It can also help businesses to improve efficiency and reduce costs.
What is Business Process Outsourcing?
Business Process Outsourcing (BPO) is the contracting of specific business processes to a third-party service provider. These processes can include back-office functions such as accounting and human resources, or customer-facing processes such as contact center operations.
Advantages of BPO
1. Outsourcing can help a business focus on its core competencies.
2. It can improve a company’s competitive edge in the marketplace.
3. It can help a company reduce its costs.
4. It can improve a company’s efficiency and productivity.
5. It can improve customer service.
Benefits of BPO
The benefits of BPO include the following:
1. Increased efficiency – By outsourcing certain functions, companies can reduce the amount of time and resources needed to complete those tasks.
2. Cost savings – By contracting out certain services, companies can often save money compared to performing those tasks in-house.
3. Access to specialized skills – By outsourcing certain functions, companies can gain access to specialized skills that they may not have in-house.
4. Improved focus on core competencies – By outsourcing certain functions, companies can focus more on their core competencies and strengths.
5. Improved flexibility – By outsourcing certain functions, companies can quickly and easily adjust their resources to meet changing needs.
Disadvantages of BPO
1. Poor quality of service
2. Limited customer service
3. Lack of customization
4. Lack of human interaction
10 Fun Facts on BPOs
1. BPOs are the fastest-growing sector in the Philippines’ economy.
2. The Philippines is the world’s third-largest provider of BPO services.
3. In 2016, the Philippines’ BPO industry generated over $22 billion in revenue.
4. The Philippines’ BPO sector employs over 1.3 million people.
5. The sector is expected to generate over $40 billion in revenue by 2022.
6. The Philippines’ BPO sector is a major contributor to the country’s economy, accounting for over 10% of its GDP.
7. The Philippines’ BPO sector is one of the most competitive in the world.
8. The Philippines’ BPO sector has attracted over $34 billion in foreign investment.
9. Over 60% of the Philippines’ BPO sector is owned by foreign companies.
10. The Philippines’ BPO sector is expected to create over 1 million additional jobs by 2022.