Give me brief explanation about BPO?

Question

Give me brief explanation about BPO?

Answer 1

BPO stands for Business Process Outsourcing.  

It is essentially outsourcing your business processes into some other company.  

For example say that you have got a computer sales company. Then providing Technical Support for the items sold becomes your business process. This can be outsourced to some other company who have trained professionals to handle this.  This is the scheme in which BPO companies work.

Answer 2

Its just outsourcing something that the Business has to do.  If they have to answer a lot of calls and outsource that, if they have another company do their payroll - whatever.

Answer 3

Business process outsourcing (BPO) contains the transmission of processes along with the associated operational activities and responsibilities, to a third party with at least a guaranteed equal service level and where the client contains a firm grip over the (activities of the) vendor for mutual long term success. BPO is positively related to the search for more efficient organizational designs: cost reduction, productivity growth and innovative capabilities. Hence, a source for strategic advantage.

Traditionally, BPO is undertaken by manufacturing firms. For instance Coca Cola, where almost the entire supply chain is outsourced and the company is essentially becoming a marketing organization. However, BPO is nowadays rapidly conquering the service oriented firms as well. A well-known example is provided by the Bank of America, who outsourced their entire HR function to Exult, one of the leading Human Resources BPO vendors.