What is BPO?

What is business process outsourcing (BPO)? Outsourcing is the process that another company hires to handle your business activities. Outsourcing is different from information technology (IT) outsourcing, which focuses on hiring third-party companies or service providers, such as application management and development, data center operation or testing and quality assurance-related activities. In the early days, business processes usually included services, such as payroll management processes. And then developed to include the management of employee benefits. Now, it contains the main business strategies that are considered as "non-core" of some functions. Nowadays, it is common to outsource financial and management (financial and organizational) processes, (human resources) functions, human resources, call center and customer service activities, and accounting and payroll. These outsourcing transactions usually involve multi-year contracts amounting to hundreds of millions of dollars. Usually, people move their jobs within the customer company, and service providers become employees. The dominant outsourcing service providers in the field of business process outsourcing (some of which are still the dominant IT outsourcing business) include IBM, Accenture and Hewitt Associates, as well as European and Asian companies Capgemini, Genpact, Tata Consulting Services, Wipro and Infosys. Many of these outsourcing jobs involve outsourcing, that is, hiring companies from other countries to complete the work. India is a popular location for outsourcing activities. Usually, outsourcing is also called the IT-driven service of Ites. Because most business processes involve some form of automation, make performs these services. One branch of outsourcing is KPO business-knowledge process outsourcing. Some people think that outsourcing is a subset, and KPO business includes those activities, which need more skills, knowledge, education and professional knowledge to deal with. For example, although an insurance company can outsource the data it needs, as part of the outsourcing plan, it can also choose a KPO service provider to evaluate the application of new insurance standards or business rules, which will require the knowledge of staff rather than the efforts of data entry and setting. The current definition of KPO includes R&D, product development and legal electronic discovery, as well as some other business functions. At the same time, the term put into use is business optimization technology-business transformation outsourcing, which means that the idea of service providers is conducive to transforming into a leaner and more dynamic idea.