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BPO - What is Business Process Outsourcing?


What is business process outsourcing (BPO)? BPO is the process of hiring another company to handle business activities for you. BPO is outsourcing, which focuses on hiring a third-party company or service provider to do related activities, such as application management and application development, center operations, or testing and quality assurance.

In the early days, BPO usually consisted of outsourcing processes encompasses a number of functions that are considered "non-core" to the primary business strategy.

These outsourcing deals frequently involve multi-year contracts that can run into hundreds of millions of dollars. Often, the people performing the work internally for the client firm are transferred and become employees for the service provider. Many of these BPO efforts involve offshoring -- hiring a company based in another country -- to do the work.

Also coming into use is the term BTO -- business transformation outsourcing. This refers to the idea of having service providers contribute to the effort of transforming a business into a leaner, more dynamic, agile and flexible operation.

















Source: http://www.sourcingmag.com/content/what_is_bpo.asp

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