What is BPO?

Before anything else, just what does BPO entail? BPO stands for business process outsourcing. It includes the communication of processes together with the related operational activities and responsibilities to an intermediary who can promise to deliver the same level of services and where the client has an upper hand over the vendor, which will lead to their mutual success.

That is certainly a mouthful. If somebody asks you what BPO is, you can always simply say it is all about finding a more efficient organizational framework. It does not hurt if you can also state a case or two for better comprehension. One classic example of BPO is Coca Cola. Chances are you are familiar with the company. But do you know how exactly do they work? Coca Cola outsourced nearly all their supply chain. In other words, they are acting more like a marketing organization than a manufacturing firm. Another instance of BPO is the Bank of America. The bank outsourced their whole Human Resources tasks to one of the leaders when it comes to Human Resources BPO vendors, the Exult.

There are several kinds of BPO namely back office outsourcing, front office outsourcing, nearshore outsourcing, and offshore outsourcing. The back office outsourcing involves internal business responsibilities like purchasing while front office outsourcing is concerned with customer-related services like technical support. In the event that BPO is conducted to the company’s neighboring country it is considered nearshore outsourcing. To the contrary, if it is contracted to a country far from where the company is situated, then it is under offshore outsourcing.

This is but an overview of business process outsourcing. For more of BPO, feel free to browse the next pages of BPOStaffing.com.