BPO Full-Form

BPO Full-Form & Its Meaning with Example

The Full-Form of BPO is Business Process Outsourcing. BPO is contracting out of a particular undertaking or part of a business to an outsider specialist organization. BPO is extremely beneficial for running and leading any organization.

Because, by using this service, a businessman may devote his complete focus to the core of his firm while contracting out the less vital aspects to a third party, making his job much easier.

Assume there is a software corporation whose duty is to create, maintain, and sell software.

This company has 1,000 employees in total, and it now needs a call center to provide technical support to its customers, where 200 individuals can address customer problems over the phone.

The company has two alternatives for this: either build its own space and hire people to operate in it as a call center or outsource their call center job on a contract basis to a call center expert company.

Here, you can see that the costs of constructing that software company's office, as well as the costs of employing and training personnel, are all saved, and some agency begins their call center operation with very little money.

Any association can profit from business process outsourcing saving both time and cash.

Many people mistake BPO with a call center, which it is not.

BPO incorporates a wide scope of services, large numbers of which are likewise technically oriented.

Top BPO Companies

1. Accenture
2. Cognizant
3. IBM
4. Wipro
5. Genpact
6. Infosys
7. Concentrix
8. Teleperformance
9. Plaxonic Technologies
10. EXL Service
11. TCS
12. Skyes
13. ADP
14. SunTec India
15. OctopusTech Solutions

Goals and Objectives of BPO

Aside from prioritizing cost reduction, firms that outsource their business processes to BPOs also prioritize the following:

1. Improving process efficiency, resulting in shorter turnaround times and higher productivity
2. Emphasizing improving their core capabilities, such as conducting additional research and development on the company's USP, developing new products and services, and so on
3. Increasing and consolidating their global footprint, as well as acquiring new business territories and countries
4. Improved work quality can lead to fewer errors and greater accuracy
5. Lowered operating and overhead costs
6. Evolving business morals and tactical competitive leads

What Are the Types of BPO?

A. Established on Supply Chain and Services

1. Back-Office BPO

Back-office business process outsourcing entails contracting non-customer-facing services. IT, accounting, business process automation, human resources, quality assurance, and other services are among those offered. IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process Outsourcing (KPO), such as outsourcing an individual who understands and can implement/manage a certain program, are all subtypes of BPO. Businesses can focus on their primary goal by outsourcing these operations rather than investing in time-consuming and costly internal training and onboarding.

2. Front-Office BPO

Customer-facing services, such as tech assistance, customer service, sales, and marketing, are referred to by this word. Because of the technical knowledge requirements, these services are commonly outsourced and can be completed off-site. Businesses can profit from specialized people with unique knowledge and minimize expenses by outsourcing web development, customer support lines, or any front office services.

B. Established on the Vendor Location

1. Offshore BPO

When services are outsourced to another country, this is referred to as offshoring. This is encouraged by plentiful resources, political stability, cheaper labor costs, numerous tax breaks, and other factors. Companies that outsource their customer support divisions by contracting with call center suppliers all around the world are a common example. As a result, firms can obtain qualified labor and services at a reduced cost, lowering overhead costs and perhaps lowering product or service prices for end-users.

2. Nearshore BPO

The act of engaging the services of vendors in geographically close nations is known as nearshore business process outsourcing. For firms in India, this might include Pakistan, Nepal, and China. This type of outsourcing occurs when specialized abilities are offered at a reduced cost in a nearby country, but certain factors, such as timezones or language proficiency, must be considered.

3. Onshore/Domestic BPO

Domestic outsourcing is exactly what it sounds like: the act of outsourcing and receiving services within a country's borders. In other words, a vendor in one city, state, or province can be hired to supply services to a company in another city, state, or province. This can be caused by a variety of variables, including the availability of specialist talents in specific places or regional variances in rates and expenses.