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what is B.P.O ?
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Answer Posted / siri
Business process outsourcing means examining the processes
that compose the business and its functional units, and then
working with focused service providers to both re-engineer
and outsource these at the same time. BPO involves the full
transfer of responsibility for functions such as transaction
processing, policy servicing, claims management, HR,
finance, and compliance to the outsourcing company. The
outsourcing provider then administers these functions on
their own systems to agreed service standards and at a
guaranteed cost.
Typically, companies that are looking at business process
outsourcing are hoping to achieve cost savings by handing
the work to a third-party that can take advantage of
economies of scale by doing the same work for many
companies. Or perhaps the cost savings can be achieved
because labor costs are lower due to different costs of
living in different countries (labor arbitrage). In exchange
for the potential cost savings, the company in question must
relinquish control over an aspect of their business that
explains why business process outsourcing is often reserved
for non-critical, non-core type of work.
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