Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider
Techopedia explains Business Process Outsourcing (BPO)
BPO categories are front office customer services (such as tech support) and back office business functions (such as billing).
The following are BPO advantages:
Business process speed and efficiency are enhanced.
Employees may invest more time in core business strategies to bolster competitive advantage and enhance value chain engagement.
Organizational growth increases when capital resource and asset expenditures are not required, which averts problematic investment returns.
Organizations are not required to invest in unrelated primary business strategy assets, facilitating a shift in focus to specific competencies.
BPO risks include:
Data privacy breaches
Underestimated running costs
Overdependence on service providers
Techopedia explains Business Process Outsourcing (BPO)
BPO categories are front office customer services (such as tech support) and back office business functions (such as billing).
The following are BPO advantages:
Business process speed and efficiency are enhanced.
Employees may invest more time in core business strategies to bolster competitive advantage and enhance value chain engagement.
Organizational growth increases when capital resource and asset expenditures are not required, which averts problematic investment returns.
Organizations are not required to invest in unrelated primary business strategy assets, facilitating a shift in focus to specific competencies.
BPO risks include:
Data privacy breaches
Underestimated running costs
Overdependence on service providers
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