Understanding Business Process Outsourcing (BPO)

Many businesses, from small startups to large companies, opt to outsource processes, as new and innovative services are increasingly available in today's ever-changing, highly competitive business climate.

Broadly speaking, companies adopt BPO practices in the two main areas of back office and front office operations. Back office BPO refers to a company contracting its core business operations such as accounting, payment processing, IT services, human resources, regulatory compliance, and quality assurance to outside professionals who ensure the business runs smoothly.

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Benefits of BPO

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Financial benefits

Organizations often find that an outsourced provider can perform a business process at lower costs, or they often find that, by contracting with an outsourced provider, they can save money as a result of the relationship in other ways, such as in tax savings.

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Flexibility

BPO contracts can allow organizations greater flexibility to adjust how it completes the outsourced business process, enabling them to better react to changing market dynamics.

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Competitive advantage

BPO enables organizations to outsource those processes that aren’t core to their businesses or missions, thereby enabling organizations to focus more of its resources on the operations that distinguish them in the marketplace.

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Financial benefits

Organizations often find that an outsourced provider can perform a business process at lower costs, or they often find that, by contracting with an outsourced provider, they can save money as a result of the relationship in other ways, such as in tax savings.

Image

Flexibility

BPO contracts can allow organizations greater flexibility to adjust how it completes the outsourced business process, enabling them to better react to changing market dynamics.

Image

Competitive advantage

BPO enables organizations to outsource those processes that aren’t core to their businesses or missions, thereby enabling organizations to focus more of its resources on the operations that distinguish them in the marketplace.

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