Business Process Outsourcing (BPO)
ebook ∣ Navigating the New Landscape of Global Business
By NISHANT BAXI
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Business Process Outsourcing (BPO) refers to a business practice where an organization procures the services of a third party or an external supplier to perform its non-primary operations or tasks. This business approach offers numerous benefits to companies, including cost reduction, resource management, flexibility, and efficiency optimization (Gray, et al., 2015).
In a highly competitive and ever-evolving global economy, firms constantly seek ways to optimize operations, cut costs, and increase efficiency. Utilizing BPO enables organizations to focus on their core tasks while assigning non-essential processes to external firms that are experts in those fields. As a result, BPO lets organizations allocate their resources and personnel efficiently and effectively (Bustinza, et al., 2019).
BPO services typically fall within either back-office or front-office operations. Back-office operations are internal business functions like human resources or finance. Front-office operations, on the other hand, are customer-related services such as technical support, marketing, and customer services. Therefore, BPO providers may offer services such as payroll, IT services, telemarketing, data recording, and technical or customer support (Oshri, Kotlarsky & Willcocks, 2015).