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What is BPO?

 

BPO - Business Process Outsourcing is a special form of outsourcing and refers to the outsourcing of entire business processes. It involves the contracting of the operations and responsabilities of a specific business process to third-party service providers. BPO is thus different from other forms of outsourcing in that it does not include part of the structure organization - this is, an organizational unit / department -, but a part of the process organization is outsourced. BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact center services. As a rule, the business process also outsources the underlying IT system. The term Knowledge Process Outsourcing (KPO) is also used.

 

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Benefits

 

  • 1. Increase efficiency and thus contribute to business success.
  • 2. Transfer process outsourcing and operating risks to the BPO service provider.
  • 3. Act strategically without burdening the operation.
  • 4. Transparent processes.
  • 5. Service providers can achieve efficient cost optimization with a low error rate by standardizing their own core processes.
  • 6. Optimal utilization of own systems and processes, which again represent cost advantages for service providers. This provides a win-win situation for outsourcing companies and service providers.
  • 7. Avoiding costs and risks, especially in the startup phase.