Outsource Services
In this day and age, money-profit-revenue-savings, though they mean almost one thing, has been the driving force and the barometer of success in the business world. The more savings, the more revenues, the better. That is why, entrepreneurs find effective ways to head in this direction. This is where “outsourcing” comes in.
Clients of outsourcing companies are not ordinary individuals but people who represent a company, an organization, or large firms from mainly US and Europe. They delegate some of their activities into the hands of an external organization or unrelated party that specializes in a particular service. Although, there are several other outsourced services out there, the three (3) main types of outsourcing are the following:
Technology Services Outsourcing
Business Process Outsourcing (BPO) and
Knowledge Process Outsourcing
Technology Services Outsourcing was born to keep up with the continuously changing technology. Gone are the days when businesses settle for inferior technology. As a result, business enterprises give in to the need to invest in the latest technologies and systems to stay competitive. This means added expenditure since it will involve a huge capital outlay for website development, network infrastructures, applications, telecommunications and so on and so forth. So to save funds, they outsource the job. Which means, creating extra revenue by not putting in extra investments; and there won’t be a need of hiring new employees or a need of training your current employees or yourself..
Business Process Outsourcing (BPO) – The BPO started when the internet was invented. BPO is the process of hiring a third-party company or service provider to handle certain functions such as payroll and employee benefits management, customer service activities, human resources, accounting and call center. Further, BPO can be typically categorized into back office and front office outsourcing. Back Office handles internal business functions like billing and payroll. While front office outsourcing generally involves customer-related services or customer service. Other BPO functions include information technology enabled service orITES since most business processes include some form of automation.
Knowledge Process Outsourcing (KPO) – an offshoot of a BPO. The defining difference is that KPO is more focused on knowledge-intensive business processes not just data entry; it involves high-value work carried out by highly skilled staff. The outsource work providers here are expected to work independently and often make many low-level business decisions. The present definition of KPO goes beyond R&D, product development and other business functions. Clearly, this is a more advanced process of outsourcing.
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