What is BPO? Business Process Outsourcing (BPO) is a process whereby businesses and other organisations to implement new business processes in the service of their clients.
Let’s define a BPO process by asking if it is an approach to improve or reposition the business. To this end, it comprises a plan or strategy for the implementation of new business processes as well as tasks. The acronym for this phrase is BPO.
If we define the processes that can be outsourced, we may begin to understand what it is. All business processes that are outsourced are mainly at the lower levels of the organisation. Therefore, we will leave business processes and any aspects that would change for the better.
When companies nowadays opt for outsourcing of various processes and procedures, they usually include processes that need to be flexible and can adapt to changing market demands. In addition, they also include processes that require keeping costs low.
These days, companies that are opting for business process outsourcing also tend to use practices and procedures that are suitable for ease of doing business. Companies are even seen outsourcing such aspects of the business, for example, customer support.
There are several businesses that utilize these practices and procedures in their dealings with the business processes of their clients. However, this is not always the case.
As per statistics, according to one recent study, 70% of BPO companies from the United States were involved in outsourced activities. This number will certainly rise as outsourcing expands its business in this part of the world. In Europe, this percentage is about 50%.
As a fact, this is just one example of many procedures and processes that could be outsourced to the overseas suppliers.
Growing popularity of outsourcing
For the last several years, firms are seen outsourcing business processes that can be outsourced to the overseas suppliers. The popularity of this method has resulted in growing demand for outsourced services. Because of this, firms are easily able to raise the number of their staff.
As companies continue to look for ways to improve the performance of their business processes, BPO becomes one of the options that have become attractive. Here are some of the strategies and processes that are common among companies who employ this option.
First of all, these processes do not need to be changed from scratch. Thus, there is no need to spend on training and providing training. Moreover, you don’t need to hire a full-time employee to manage the process.
These processes also involve the important aspects of the organization. Outsourcing these processes requires a firm to focus on results rather than on creating a management team that oversees the process.