The term BPO can be expanded as Business Process Outsourcing. Making contracts with external service providers for some functions of an organization is called outsourcing. BPO work is not suitable for all firms. So, before planning to opt for outsourcing, the hiring companies should calculate its advantages over using the same resources within their own firms.

The outsourcing can be offshore or nearshore outsourcing where BPO centers situated overseas are contracted. Making a contract in a neighboring country is referred to as near shore outsourcing. Outsourcing within the company’s country is called on shore sourcing, e. G. An organization based in USA outsources any function to a US based call center.

Business process outsourcing can be classified into back and front office outsourcing. Front office outsourcing generally consists of customer related services like technical support, while back office outsourcing includes functions like accounting, finance, human resources etc.

Labor shortage problem can be overcome by outsourcing the work. Some countries have significant labor shortage in certain fields, in such cases the country can outsource their work to other countries and can avail skilled labor from there. Through outsourcing, an organization can access the broad ranges of skills, knowledge and technologies which are not available within the organization.

Outsourcing your business processes can and will reduce your costs. Through off shore outsourcing, one can avail low cost labor available in other countries. For example, if a call center charges 20$ per hour in some country for technical or customer services then one can choose some other country where the charges are less for the same work.

A business firm can work better in its core field by outsourcing non core functions. The company can concentrate on the improvement of their core activities instead of wasting time on other functions. Non core activities of the company become the core activity of a BPO, and they are bonded with legal contracts for delivering the work as per requirements otherwise legal actions can be taken against them.

Business process outsourcing has a wide scope and this is continuously expanding. BPO companies work 24/7 and 365 days in a year and also maintain quality of their work as required by the client. Some standards like ISO, 6 Sigma, COPC etc are set by international or national organizations for the BPOs. This makes it easier for client companies to outsource their work according to the quality of services that a BPO may provide.

Some BPO works include outsourcing services like medical billing, multimedia & animation, book keeping & financial services, business consulting, call center, handwriting, data entry, typesetting, HR, internet marketing, editing. In addition to this, they may also provide legal services, proofreading, software & technology, transcription, web design & development, and writing & translation.

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