An Introduction to Business Process Outsourcing (BPO)

Why BPO?

Leveraging of technology or specialist process vendors to provide and manage an organization's critical and/or non-critical enterprise processes and applications.
The most common examples of BPO are call centers, human resources, accounting and payroll outsourcing.
BPO or Business process outsourcing may involve the use of off-shore resources.
BPO means delegating the ownership,administration, and operation of a process to a third party.
BPO is about solving a business problem.
BPO aims to raise a client company's shareholder value because it is about delivering outcomes-that is, higher-performing business processes.
Companies essentially have three kinds of processes: core processes (which give strategic advantage), critical, non-core processes (which are important but are not competitive differentiators), and non-core, non-critical processes (which are needed to make the environment work).

However, outsourcing does not mean handing over an entire process.

It generally means turning over to a BPO provider the "how" aspects of a process-the systems, infrastructure, administration, execution, and some of the design of non-core processes.
The company retains the "what" aspects of the process-the governance, policy-setting, decision making, and strategy of these processes.
The intent is to outsource the execution of a process while retaining the direction-setting part.

Companies generally outsource four types of processes:

processes that link to suppliers (supply chain management)
processes that link with customers (sales, marketing, and customer care)
production processes (R&D, contract manufacturing)

support processes (finance, HR). Examples of processes now outsourced include human resources, employment, accounting, finance, procurement, travel, the order-to-cash process, cafeterias, payroll, landscaping, real estate, manufacturing, advertising, and on and on-any process that is not core and should improve if managed by a specialist.

High performance businesses are turning to BPO to help them respond to the unprecedented market conditions and make vital changes.
Marks Technology & Consultancy comprehensive portfolio of business process outsourcing services provides industry-specific as well as cross-industry BPO solutions that enable our clients to achieve immediate and sustained cost savings, improve cash flow and drive growth—key priorities in today’s economy.