What is BPO and what are advantages and dis advantages of BPO?

Answer 1

BPO stands for "business process out sourcing," and is better known as simply "out sourcing." It is basically the process by which a company can delegate certain functions of their business to a specialized organization who can get it done more cheaply, quickly, and efficiently.

BPO Advantages

• Cost reductions- Cost reduction is done through process improvements, reengineering and use of technologies that reduce and bring administrative and other costs under control.

• Concentration on core business- With the day-to-day back office operations taken care of, the management is free to concentrate more on the core business of the company.

• Outside expertise- Company is saved from the hassles of recruiting and training personnel. BPOs ensure that experts from another company provide the needed guidance and skills.

• Cater to changing customer demands- It is another great advantage of out sourcing the business processes. Many BPOs provide the management with flexible and scalable services to meet the customers' changing requirements, and to support company acquisitions, consolidations, and joint ventures.

• Revenue increase- As stated above, by outsourcing non-core processes, companies can concentrate on increasing their sales and market share, develop new products; spread out into new markets and increase customer service and satisfaction

Answer 2

BPO: Business process Outsourcing

For example: A runs a company that makes software called Y. Now, to do Y, we need to set up different departments like:

1. Software architect design department (algorithm)
2. Code writing department.
3. Department to check for errors (quality control department)
4. Department to market and sell the software
5. Department to deliver the software correctly
6. Department to attend customer inquiries
7. Department to resolve complaints

Similarly, there may be other departments that meet certain requirements for the business to run smoothly.

Now if A thinks that getting the codes written from India would make more sense due to any of the following reasons:

8. Pakistan has better encoders.
9. The cost of writing the codes is low.
10. The company does not comply with certain compliance of the country of origin.
11. The company does not want to waste time establishing a separate department, as it would take time and money to hire and build the team.

Therefore, the company would outsource it to another company that makes more business sense.

The whole process is called business process outsourcing and is abbreviated as BPO.

Hope things are clear!