We all are familiar with the term BPO.
BPO is a well known term these days.
Let us understand what is BPO? Well BPO is an abbreviation used for Business Process Outsourcing.
We can say that it is another term used for outsourcing.
When a company make a contract with an outside provider for services or any business process, we call it business process outsourcing.
Business process services are outsourced to an outside firm or the third party who replaces the in-house services with labor of the company who outsource its process or functions.
As explained in Wikipedia, Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider.
In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm.
Under BPO, there are various functions which are outsourced like manufacturing, technical support, customer care and so on.
When companies outsource its work outside its native country, it is called Global BPO.
Big companies hire other companies to handle some of their business activities.
These hired companies get that work done quickly and cost effectively.
At the present time, not only big and highly developed companies but also the small and developing companies outsource their work or process in order to save their time, money and manpower.
Tasks or functions that are required to be done in a company but do not fall under the category of company's core work are generally outsourced to a third party or outside firm so that company can focus on its core work and grow rapidly making maximum profits.
Companies in order to focus on their core functions which affect their goodwill and reputation in the market outsource their other tasks to the third party who is reliable and competent enough to perform it efficiently and cost effectively.
Now-a-days, companies outsource process like financial and administration process, human resource functions, call center and customer care services, accounting and so on.
The third party is generally contracted for multi years for outsourcing task which brings great revenue to both the parties.
India has become a great platform for outsourcing or BPO activities.
BPO companies have been expanding more over the past few years.
Dominant outsourcing service providers in the BPO fields (some of which also dominate the IT outsourcing business) include US companies IBM, Accenture, and Hewitt Associates, as well as European and Asian companies Capgemini, Genpact, TCS, Wipro and Infosys.
From the point of view of employment, BPO has become a major source of employment.
Because of the establishment of BPO companies, maximum numbers of individuals are able to get a job according to their skills.
In BPO companies, great opportunity is given to a fresher so that he can enhance his skill and prove himself.
As we all know BPO is a wide industry which includes different sorts of tasks, process and functions to be done, ultimately gives chance to the fresher belonging to various fields to prove themselves and earn their livelihood too.
In a nutshell, we can say that BPO has become an important part of the business industry and it is expanding day by day.
BPO is beneficial from both business perspective and employment perspective.