Business Process Outsourcing (BPO)

Filed Under (Business Process Outsourcing) by Fawad on 24-05-2010

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Business Process Outsourcing (BPO)

Outsourcing is the process of involving another person or company to do a particular task. When outsourcing is embedded in a business environment it is known as Business Process Outsourcing, abbreviated BPO. So Business Process Outsourcing (BPO) is the approach to involve a third party to carry out the responsibilities and operations of a particular business organization. BPO was originally associated with the manufacturing companies which have large supply chains.

Types of Services offered by BPO

Earlier, BPO was used only for payroll applications. But now BPO provides its services to a wide range of areas which includes customer care centers, call centers, human resources etc. Here we will discuss about them briefly:

  • Customer Care Centers- Customer care centers sort out the problems of their customers about the facts that they are providing. It is an all time service.
  • Technical Support Centers- Technical support centers provide services to solve customer queries including computer peripherals, software or hardware problems. It also offers services to provide solutions for product installation or update.
  • Telemarketing Service- BPO also offers telemarketing or telesales services. Telemarketing is the service by which a salesperson attempts to solicit the customers to buy a product or services either over a phone or through web conferencing. Telemarketing also helps to grow interest in a product or service, in a customer.
  • Data Processing Services- Data processing services include preparing or retrieving data, converting it to meaningful and useful information and managing the information in a cost effective manner.

Services provided by the BPO can also be categorized as either horizontal or vertical.

  • Horizontal BPO Services- Horizontal BPO services include payroll management, facilities management, human resource management etc.
  • Vertical BPO Services- Vertical services include healthcare services, finance and account management, manufacturing etc.

Role of BPO in Information Technology (IT)

For the various types of services it provides, BPO has extended its services in the field of information technology also. All the leading companies have their own BPO sector and it has proven to be a great advantage for the companies. The services provided by the BPO in the field of information technology are categorized as Information Technology Enabled Services (ITES).

Information Security in BPO

Information to an organization is of vital importance and may be confidential. Such sensitive data or information should not be accessed by unauthorized person. BPO faces many challenges in accomplishing this objective. The main barriers of BPO in achieving information security are-

  • Hackers- These persons manage to access the accounts of the customers without permission.
  • Crooks- They pretends to be authenticated call centers.
  • Agents- They illegally misuses the information in call centers.

Recession and BPO

A business organization faces many challenges like, maintaining customer value, movement of the competitor etc. Recession is the slowdown in the economical growth in a business organization. However, partnering with the proper BPO can help a business organization not only to beat the recession but also to come up with the solutions. By adopting the proper strategic approach a business organization can solve the recession problems.

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