What is BPO( Business Process Outsourcing)?

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Basically this practice is followed worldwide and most of the companies outsource their repetitive and redundant work from other companies whether situated in same country or other country. 

This concept gained popularity after seeing the importance of specialisation in the field of business where the quality of the products and the services were improved due to specialised services of the other organisations and the main business employees or owner could focus on the important aspect of the business and transfer the regular or technical work to the organisation which may have created a burned on the business. 

Outsourcing guarantees best of the services provided and improvement in the quality of work as specialised expertise and professional  people are involved and also provide the benefit of time and optimum utilisation of resources and company can focus on more important task and delegate the regular work or other specialised form for a very minimal cost with also provide the benefit of the cost and reduction in the cost of production and competitive advantages to business. 

Ｃｏｎｃｅｐｔ ｂｅｈｉｎｄ ＢＰＯ:

Business process outsourcing emerged when the organisations were burdened which all the works which requires expertise and knowledge from various fields. It was not possible for the organisations or business houses to be efficient and up to the mark in every field and to outperform in every field whether it's sales, marketing, etc. Show the organisation started using the services of specialist where they could gain cost and time benefit. 

Business process outsourcing in helps in gaining and increasing customer satisfaction full stop it helps in increasing the sales and profit of the organisation. It reduces the burden of work on the customer and provides 24*7 supports to the business. Services such as accounting, maintenance of records, public relation maintenance, after sales services, packing of goods, procurement or manufacturing of some parts of the goods can be done through business process outsourcing at a cheaper rate. 

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•Contact Basis: organisations generally enter into the contract with other Outsourcing business houses to seek services from them. 

•Transfer of Repetitive/ Redundant work:

The major work which may involve the secret of the organisation aur main process of the organisation are carried on by the organisation itself and such work which is less important or clerical in nature which doesn't involve any trade secret can be transferred to specialised Outsourcing firms.

•Not only goods but services can also be outsourced: A organisation Ken outsource services also which are less important to the firm and redundant in nature. It may transfer the work to its subsidiary or expert firm such as audit, accounts, taxing, marketing, etc.

India's company General Electronics is very good example of the organisation. 8 with the support of its parent company situated in America provide such services and facilities to other business houses and organisation. Business process outsourcing helps to achieve economy is of scale and quality based services and goods.

This concept is now being widely used by the organisations all over the world as it helps in reducing the cost of production, increasing the profit, providing the benefit of economy of scale, providing the benefit of expert services, etc. This concept is changing the scenario for upcoming business opportunities.

Ｓｃｏｐｅ ｏｆ ＢＰＯ:

Business process outsourcing can be divided into four important zones or fields which involves obtaining contract based on outsourcing, researching and finding out new areas for outsourcing, obtaining contracts and conducting research in the field of business process outsourcing. 

“BPO” isn't that popular term, the more widely used term which may be considered a synonym to it is “call center” which are widely spread in India. 70% revenue of the business process outsourcing comes from call centres only, 20% from the providing and analysing the data and information available, 10% from the high-value information dissemination. This customer facility of providing information, assisting people across the world, guiding the customer, is done 24*7 in the so called “Call Center”.

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The main benefit of BPO is that it relieves the employees of the organisation from the regular work of the organisation which could be done by the BPO houses and companies. BPO helps the companies to focus and devote their time to important operations of the company.

Through business process outsourcing companies can gain following benefits:

1. Reduces Production cost: This is done through achievement of economies of scale an increase in the supply of good quality Services and goods.

2. Focus on Important Tasks: Company can focus on the important issues of the company and can focus on the area which require more attention and time.

3. Benefit of Specialisation: Companies enjoy the services from the best of this specialist which have over all knowledge of the subject. This helps to improve the overall quality of goods and services.

4. To meet ever changing demand of customer:

Customer taste changes frequently and very fast. It is very important to be active in studying the requirements of the customers, their expectations and what they want.

• To focus on Important expansion and development of the Company: Company get enough time and saves on enough resources to enter into new fields and upgrade the business with the ever changing environment.

Ｄｉｓ－Ａｄｖａｎｔａｇｅｓ ｏｆ ＢＰＯ:

1. Risk is the biggest disadvantage of business process outsourcing. When we are sharing our work with other firms and business houses, it is very important to maintain the secrecy and confidentiality of the documents.

2. Contract issues may arises as contract may limit the working of the organisation and may impose restrictions also on the company.

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