(BPO) Business Process Outsourcing important topic for CS Foundation
CS Foundation Classes Online : We are Takshila Learning, your online education partner. We offer complete CS online coaching classes. CS online classes are categorized into CS Foundation, CS Executive, and CS Professional. Our target is to assist student in their journey of CS Preparation. Today we have brought an important article related to ‘Fundamental Accounting and Auditing’, an important part of CS Foundation. While preparing for CS Preparation, you must have studied in details about Fundamental Accounting and Auditing. In this blog, we will discuss “Business Process Outsourcing”.
Business Process Outsourcing (BPO)
In general terms, it refers to the outsourcing of activities to a third party on a contractual basis.It’s an Information Technology Enabled Service (ITES). Activities outsourced are generally non-primary business activities outsourced to a third party service provider. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are some of the sub-segments of the business process outsourcing industry.
BPO categories are:
- Front-office customer services (such as tech support, phone conversations, fax etc)
- Back-office business functions (such as billing, quality assurance, data entry etc).
Need of BPO Business
- Optimum utilization of resources.
- Specialized Performance.
- Ensuring Smooth Operations.
- Achieving Economy.
- Getting Better results.
- Expansion of Business.
For the detailed explanation of Need of BPO Business, click here Fundamental Accounting and Auditing notes.
Benefits of BPO Business
- Can focus on Core Business Activities if non-core/non-primary activities are outsourced.
- Less Capital expenditure on people and equipment.
- Skilled Manpower.
- Cost-Effectiveness as outsourcing an activity saves 30% of Capital expenditure of the business.
- Enhances flexibility of the business in its resource management.
- BPO increases organizational flexibility.
- Maintenance of Company’s growth goals.
- Ability to reassign the resources.
- Access to technology resources.
Disadvantages of BPO Business
- Data privacy breaches.
- Underestimated running Costs.
- Overdependence on service providers.
- Although Cost effective BPO involves some hidden costs.
- A single BPO associate with multiple organizations. Hence, providers are not able to fully concentrate on the assigned tasks.
- If the right BPO is not chosen, it is difficult to get the expected outcome.
Learn more about BPO and its working through online classes for CS Foundation.
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