Business process outsourcing
or BPO, in short, is a process where a company hires the services of a third
party service provider to fulfill specific business functions instead of
engaging directly. This is mainly used as a cost-saving technique by companies
that make use of already existing infrastructure by paying a stipulated
remuneration in return. This process is associated mostly with a manufacturing
firm that is involved in the large-scale production.
According to Creaghan Harry, BPO mainly involves customer related services
and back office outsourcing which is mostly engaged in internal business
functions. It includes primarily works
that range from human resources, finance, accounting to customer service.
BPO as
a rising sector
Mostly
company contracts service provider from countries that enjoy the benefits of
widely available labor and low cost of human resource in other countries. This
is known as offshore outsourcing. As quoted by Creaghan Harry, More
often than not, it is generally the IT firms that hire such agencies elsewhere,
providing not only mutual benefits but also decent remuneration in the process.
BPO is a
vast and booming industry in Asia, where the availability of labor and the
accessibility of technology creates ample opportunity for a stable job. The BPO
not only creates job opportunities in large numbers but they also create
employment that raises the quality of life. Most of the major IT firms are
known to have already invested in this growing sector, benefiting from the
service providers that are littered across the globe.
Advantages
and
The
significant benefits of a BPO are that it considerably increases the mobility
of the company at a fraction of the price. The primary concern for any company
while investing in infrastructure elsewhere are the legal complexities that
entail such a venture along with the massive amount of resources they must pool
in for the construction and development of such faculty. Outsourcing to a BPO
eliminates most of those worries and cuts away the cost of infrastructure at
the same time enabling them to reap the benefits of an area overseas.
BPO also
tends to be a very competitive a very competitive place and hence the speed of
work also is immense, speeding up the business process as well along with
profits. In the Asian countries, major BPO sector provides job opportunities to
a considerable number of people who would otherwise be rendered jobless and have
no source of income. The primary focus of work is generally customer support
and sales, where the tele-caller using provided customer information calls up
customers individually and address their problems or engage in transactions and
promotional activity on behalf of the outsourcing company.
Disadvantages
Though the advantages of the BPO are many,
there are also considerable risks involved since generally BPO deals with leads
of a customer from other countries, and their privacy may be compromised. And
in such cases, legal assistance may not always be available. Thereby such
incidents may deter prospective companies from investing in the sector. There
are many other risks from the standpoint o BPO as they might get duped by sham
companies that exploit their service without paying promised remuneration.
However, in
spite of such risks, the benefits are many, and the current state of affairs
clearly points out BPO to be one of the fastest growing sectors worldwide.
Learn More:
https://www.crunchbase.com/person/creaghan-harry
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