ServicesServices -> Business Process Outsourcing Business Process OutsourcingBusiness process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in the marketplace. BPO is often divided into two categories: back office outsourcing, which includes internal business functions such as billing or purchasing, and front office outsourcing, which includes customer-related services such as marketing or tech support. Business Process Outsourcing is the long-term contracting out of non-core business processes to an outside provider to help achieve increased shareholder value. Many IT professionals are familiar with the term business process outsourcing (BPO), but knowing how to distinguish it from other types of outsourcing requires some scrutiny. Though some forms of BPO may include both IT management and business operations, the approach is primarily about turning over functions such as payroll, accounting, billing or even real estate management to a third party. Though these business processes may depend on IT, they are separate functions from core IT operations, such as data center activities or network management. BPO that is contracted outside a company's own country is sometimes called offshore outsourcin. BPO that is contracted to a company's neighboring country is sometimes called near shore outsourcing, and BPO that is contracted within the company's own country is sometimes called onshore outsourcing. ESS Offering Services :
Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer. BPO includes the software, the process management, and the people to operate the service, while a typical ASP model includes only the provision of access to functionalities and features provided or 'served up' through the use of software, usually via web browser to the customer. BPO is a part of the outsourcing industry. It is dependent on information technology; hence it is also referred to as information technology enabled services or ITES.
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