{"id":15445,"date":"2023-08-24T16:05:42","date_gmt":"2023-08-24T09:05:42","guid":{"rendered":"https:\/\/bestarion.com\/us\/?p=15445"},"modified":"2024-10-06T03:01:49","modified_gmt":"2024-10-05T20:01:49","slug":"what-is-bpo","status":"publish","type":"post","link":"https:\/\/bestarion.com\/us\/what-is-bpo\/","title":{"rendered":"What is Business Processes Outsourcing (BPO)?"},"content":{"rendered":"

\"BPO\"<\/p>\n

<\/span>What is Business Process Outsourcing?<\/span><\/span><\/h2>\n

Business process outsourcing (BPO)<\/b><\/a> is a business practice in which a company hires an outside service provider to perform a critical business function or task.<\/span><\/p>\n

A company will typically contract with another company for such services after identifying a process that, while necessary for its operations, is not part of its core value proposition. This step necessitates a thorough understanding of the organization’s processes and strong business process management.<\/span><\/p>\n

Many organizations consider payroll<\/a> and accounting<\/a> to be good candidates for BPO because they are performed the same or similar from company to company.<\/span><\/p>\n

Because these commodity processes do not generally distinguish one organization from another, enterprise executives frequently determine that having their staff perform them adds little value. Companies believe outsourcing these processes to a specialized provider will yield better results.<\/span><\/p>\n

BPO originated in the manufacturing industry. After determining that third-party vendors could bring more skills, speed, and cost efficiencies to those processes than an in-house team could, manufacturers hired them to handle parts of their supply chains. Organizations in other industries eventually adopted the practice.<\/span><\/p>\n

Today, for-profit businesses, nonprofits, and even government agencies use BPO to outsource various tasks to service providers in the United States, North America, and worldwide.<\/span><\/p>\n

Read more: How Accounting Outsourcing To Viet Nam Benefits USA Accounting Firms?<\/a><\/p>\n

<\/span>What is the Purpose of BPO?<\/span><\/span><\/h2>\n

Businesses use business process outsourcing for two types of tasks: back-office functions and front-office functions.<\/span><\/p>\n

Accounting, information technology (IT) services, human resources (HR), quality assurance, and payment processing are examples of back-office functions, also known as internal business functions.<\/span><\/p>\n

Customer service, marketing, and sales are examples of front-office functions.<\/span><\/p>\n

Some businesses outsource an entire function, such as the human resources department, to a single vendor. Other companies outsource only specific processes within a functional area, such as payroll processing, while performing all other HR processes in-house.<\/span><\/p>\n

The following are examples of commonly outsourced processes:<\/span><\/p>\n