Many people wonder what BPO means, and this acronym stands for Business Process Outsourcing. It is the process that entails hiring another company to support or handle your business activities. BPO is different from IT (Information Technology) Outsourcing because the latter focuses on activities that are IT-related. Years back, BPO typically included outsourcing processes or systems such as payroll. At present, there are several functions encompassed in BPO.
Outsourcing Deals in BPO
When you need a detailed explanation on the question “what is BPO”, you need to know about the different outsourcing deals and processes included in BPO. Several organizations tend to outsource financial and administration processes, call center, customer services, payroll, and human resources functions in a company. The staff works for the internal firm although the employees are located in other countries. This process is called offshoring, where the workers and the company are based in another country. India is one of the most popular country for BPO activities.
Reducing Risks in BPO
If you need to know what is BPO-related problem, then you should learn about the operational risks that are common in BPO, as well as the ways on how to avoid the risks.
• People risks
When employees are not well-trained in the job, they may become a risky to the company. Hence, there should be training metrics that are applied for the improvement of the workers.
• Technology risks
A weak service provider could be a hazard to the company, which is why there should be technology metrics. The metrics should include network uptime, application uptime and system uptime. The service provider should be reliable, so that the company could connect with the management system and other branches of the company.
• Process risks
This is another important aspect that the company should keep in mind; thus, process metrics should be applied in the company, so that the business process would operate smoothly.
BPO is a great way to save money in the operation of the business. However, there should be effective metrics applied in the company, so that the risks would be reduced.
What is BPO, and what do employees think about several outsourcing companies? BPO stands for Business Process Outsourcing, and it is a process where a company contracts companies in another country, so that they could get cheaper costs for several business functions and operations. India is one of the many countries that are a popular choice for outsourcing because of the cheap labor cost and efficient employees. With BPO, a big company abroad connects with the business operations that are situated in a different location.
If you need to know what is BPO, you should read along to find out some companies, and what the employees have to say about these. For instance, WiPro.com is an outsourcing and offshoring company that is located in New Delhi, India. It is a privately-managed company, that has thousands of employees, at present. The employees have divided opinion on the company, as some believe that there is poor management, while others acclaim the company because of the good compensation and allowances. Other outsourcing companies in India are located in major cities such as Bangalore, Noida, Pune and Gurgaon.
Starting Your Own BPO
Before you start your own BPO, you should first understand what is BPO including the risks and the ways on how you could reduce the risks. Typically, BPO is ideal for many companies because of the cost-effectiveness of the outsourcing company. However, there are challenges and threats that are part of BPO. Thus, you should make sure that you are equipped with excellent skills and knowledge when it comes to the best solution in dealing with the risks. You should observe technology metrics, training metrics and other means of making the company thrive despite the challenges. You should make sure that you employ the best workers in the company, so that you could make your company succeed and provide excellent services to clients.
When you need to know what is BPO, you will discover many online and print resources that talk about Business Process Outsourcing. Many businesspersons have discovered the great savings on cost when they employ a company to handle their business operations. In this particular system, the company gets its finance and administration, payroll, customer service representative and call centers in other countries (offshoring) that provide cheaper cost for the services. Thus, BPO becomes cost-effective and convenient for many companies.
Benefits of BPO
Several people wonder “what is BPO”, and they try to find out how it could create a positive effect to their company. The advantage of BPO is that a company could hire workers or establish a company in another country that offers cheap rates. The system in the company is still manageable and organized because the key elements such as the Human Resources personnel, Finance and Administration, Payroll and Customer Representative still exist. However, the employers working on those positions are located in other countries.
Drawbacks of BPO
Although BPO may have benefits when it comes to the cost of workers, businesspersons need to know what is BPO and what the possible problems are when it comes to outsourcing. A big risk in BPO is the service provider or the technology; once the system is in downtime, there would be great difficulty in connecting with the different branches of the company. Thus, there should be technology metrics that the company should have, so that the problem with technology would be prevented or reduced. Moreover, the workers should have the best training from the specialists, as this could minimize risks with the employees that are located in several parts of the world. The risks in BPO may be great, but these challenges may be reduced by applying the right techniques in managing the company.