BPO means Business Process Outsourcing. It is the procedure for hiring an outside company that has the expertise in performing specified tasks. The decision to outsource such tasks are driven by the company’s goals of generating significant cost-savings and improving efficiency in some of its operations. By doing so, the company can focus its attention on its core competencies.
Business Process Outsourcing(BPO) are categorized as Prisoner and Non Prisoner Activities, otherwise known as third-party BPO, depending on the kind of outsourced work.
Prisoner
BPO is considered as ‘captive’ when that outsourced work is being undertaken by the company’s spun-off business unit, oftentimes by a subsidiary company . For instance, Dell International services is a classic example of a captive business process outsourcing activity (BPO).
Non Prisoner
BPO is considered as ‘non-captive’ when the outsourced work is being undertaken by a third party company. For instance, Wipro manages the company’s outsourced projects such as various Internet Service Providers, banks, computer manufacturers, etc.
Business Process Outsourcing Operations
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