The philosophy behind BPO is specific to, do what you do to the best and
leave everything else to business process outsourcers. Companies
are moving their non-core business processes to outsource providers.
BPO saves precious management time and resources and allows them to focus
while building upon their core competencies. The list of functions being
outsourced is getting longer by the day. Call centers apart, functions
outsourced span purchasing and disbursement, order entry, billing
and collection, human resources administration, cash and investment
management, tax compliance, internal audit, payroll, etc and the
list gets longer every day.
BPO is the act of transferring some of an organization's repeated
non-core and core business processes to an outside provider to
achieve cost reductions while improving service quality. Because
the processes are repeated and a long-term contract is used, outsourcing
goes far beyond the use of consultants. If done well, BPO results
in increasing shareholder value. The main difference between BPO
and more traditional IT outsourcing is that BPO offers companies
a way of achieving transformational outcomes much more quickly.
In a typical BPO contract, a service provider takes over a specific
corporate function. Effective BPO encompasses much more than just
changing who is responsible for performing the process. In BPO,
the outside provider not only takes on the responsibility to manage
the function or business process, but also re-engineers the way
the process has been traditionally done