what is business process outsourcing?

Question

communications

Answer 1

Here is my anwer From Wikipedia:
Outsourcing (or contracting out) is often defined as the delegation of non-core operations or jobs from internal production within a business to an external entity (such as a subcontractor) that specializes in that operation. Outsourcing is a business decision that is often made to lower costs or focus on competencies. A related term, offshoring, means transferring work to another country, typically overseas. Offshoring is similar to outsourcing when companies hire overseas subcontractors, but differs when companies transfer work to the same company in another country. "Outsourcing" became a popular buzzword in business and management in the mid-1990s.

http://en.wikipedia.org/wiki/Outsourcing

Answer 2

BPO stands for "business process outsourcing," which is simply another term for outsourcing. The term BPO, however, is frequently used to describe a company that is contracted to provide for services or business processes. This might include manufacturing or back-office functions such as accounting and human resources. But BPO might also includes front-end services such as customer care and technical support. "Global BPO" is another term for offshoring or outsourcing outside a company's home country or primary market.

Answer 3

A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may take years to amortize, may become outdated or turn out to be a poor match for the company over time. Although the above-mentioned arguments favor the view that BPO increases the flexibility of organizations, management needs to be careful with the implementation of it as there are issues, which work against these advantages. Among problems, which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility.

Answer 4

Let me try to make it really simple !. A guy who works in US for (say) railway station for service enquries where customers call up and ask wat time is the train and details of the ticket. He gets paid around 30 dollars a day!.
Now consider the same job given to someone outside the country (like india) for the same quality of service for a lesser pay like 10 dollars!.
Now thats called BPO :) (the company pays for teh phone lines.. :) )

Answer 5

it's where stupid US & EU companies, decide to let off-shore(cheaper) companies do their work.

It rarely works in the long term.