BPO stands for “business process out sourcing,” and is better known as simply “out sourcing.” It is basically the process by which a company can delegate certain functions of their business to a specialized organization who can get it done more cheaply, quickly, and efficiently.
- Cost reductions– Cost reduction is done through process improvements, reengineering and use of technologies that reduce and bring administrative and other costs under control.
- Concentration on core business– With the day-to-day back office operations taken care of, the management is free to concentrate more on the core business of the company.
- Gain greater internal flexibility- Through outsourcing, management can focus on more strategic issues and other important company initiatives, and has more flexibility to assign staff and allocate resources to higher-value projects
- Make continuous improvements in process- We design, build, and manage the business processes to operate better, faster, and less expensively, and we work with clients to make continuous improvements in process effectiveness and efficiency.
- Achieve world-class standards/benchmarks- We reengineer business processes to incorporate the best-in-class practices of the world’s leading companies, and we use performance measures and benchmarking to improve performance and costs.
- Revenue increase- As stated above, by outsourcing non-core processes, companies can concentrate on increasing their sales and market share, develop new products; spread out into new markets and increase customer service and satisfaction.