Business process outsourcing (BPO) involves contracting non-core business functions like human resources, finance, and customer service to third-party service providers. There are three main types of BPO: offshore outsourcing uses providers in other countries, onshore outsourcing uses domestic providers, and nearshore outsourcing uses providers in neighboring countries. BPO provides advantages like reduced costs, focus on core business functions, and expertise from specialized providers, allowing companies to better meet changing customer demands. However, BPO roles can involve disadvantages like odd working hours, health issues from sedentary work, and social problems from long shifts.

1. BUSINESS
PROCESS
OUTSOURCING

2. WHAT IS BUSINESS PROCESS
OUTSOURCING?
OUTSOURCING IS A SUBSET OF OUTSOURCING THAT INVOLVES
CONTRACTING THE OPERATIONS AND RESPONSIBILITIES OF
SPECIFIC BUSINESS FUNCTIONS (OR PROCESSES) TO A THIRD-
PARTY SERVICE PROVIDER. ORIGINALLY, THIS WAS ASSOCIATED
WITH MANUFACTURING FIRMS, SUCH AS COCA COLA THAT
OUTSOURCED LARGE SEGMENTS OF ITS SUPPLY CHAIN. IN THE
CONTEMPORARY CONTEXT, IT IS PRIMARILY USED TO REFER TO
THE OUTSOURCING OF BUSINESS PROCESSING SERVICES TO AN
OUTSIDE FIRM, REPLACING IN-HOUSE SERVICES WITH LABOR
FROM AN OUTSIDE FIRM.

3. BACK OFFICE
OUTSOURCING
BPO is categorized into back-office outsourcing and front-office
outsourcing
Back Office Outsourcing
which include internal business functions such as:
Human Resource
Finance
Accounting
Front Office Outsourcing
which include customer-related services such as:
Contact Center Services

4. BPO- TYPES THERE ARE THREE TYPES OF BPO.
OFFSHORE OUTSOURCING
ONSHORE OUTSOURCING
NEARSHORE OUTSOURCING

5. BPO THAT IS CONTRACTED OUTSIDE A
COMPANY'S COUNTRY IS
CALLED OFFSHORE OUTSOURCING.
WHAT IS OFFSHORE OUTSOURCING?
Is the practice of hiring an external organization to perform
some business functions in a country other than the one where
the products or services are developed or manufactured is the
practice of hiring an external organization to perform some
business functions in a country other than the one where
the products or services are developed or manufactured.

8. BPO THAT IS CONTRACTED TO A COMPANY'S
NEIGHBORING (OR NEARBY) COUNTRY IS
CALLED NEARSHORE OUTSOURCING.
WHAT IS NEARSHORE OUTSOURCING?

9. THERE ARE SOME SUB-SEGMENTS OF THE BUSINESS PROCESS
OUTSOURCING INDUSTRY
.
KNOWLEDGE PROCESS OUTSOURCING (KPO) IS A FORM
OF OUTSOURCING, IN WHICH KNOWLEDGE-RELATED AND
INFORMATION-RELATED WORK IS CARRIED OUT BY WORKERS
IN A DIFFERENT COMPANY OR BY A SUBSIDIARY OF THE SAME
ORGANIZATION, WHICH MAY BE IN THE SAME COUNTRY OR IN
AN OFFSHORE LOCATION TO SAVE COST. KPO FIRMS, IN
ADDITION TO PROVIDING EXPERTISE IN THE PROCESSES
THEMSELVES, OFTEN MAKE MANY LOW-LEVEL BUSINESS
DECISIONS—TYPICALLY THOSE THAT ARE EASILY UNDONE IF
THEY CONFLICT WITH HIGHER-LEVEL BUSINESS PLANS.

10. LEGAL PROCESS
OUTSOURCING (ALSO KNOWN AS
LPO)
IT REFERS TO THE PRACTICE OF A LAW FIRM OR CORPORATION OBTAINING
FIRM OR CORPORATION OBTAINING LEGAL SUPPORT SERVICES FROM AN
FROM AN OUTSIDE LAW FIRM OR LEGAL SUPPORT SERVICES COMPANY. LPO
COMPANY. LPO PROVIDERS HAVE ESTABLISHED THEMSELVES IN CANADA, INDIA,
IN CANADA, INDIA, THE PHILIPPINES, THE US, ISRAEL, AND LATIN AMERICA. THEY
AMERICA. THEY TRADITIONALLY OFFER SERVICES IN THE AREAS OF DOCUMENT
DOCUMENT REVIEW, LEGAL RESEARCH, AND WRITING, DRAFTING OF
PLEADINGS AND BRIEFS, AND PATENT SERVICES OUTSOURCING.

11. WHY BPO IS GAINING GROUND?
A FEW OF THE MOTIVATION FACTORS ARE:
FACTOR COST ADVANTAGE
ECONOMY OF SCALE
BUSINESS RISK MITIGATION
SUPERIOR COMPETENCY
UTILIZATION IMPROVEMENT

12. DIFFERENT TYPES OF SERVICES BEING
OFFERED BY BPO
CUSTOMER SUPPORT SERVICES
TECHNICAL SUPPORT SERVICES
TELEMARKETING SERVICES
EMPLOYEE IT HELP-DESK SERVICES
INSURANCE PROCESSING
POLICY MAINTENANCE/ MANAGEMENT:
DATAENTRY SERVICES/DATAPROCESSING SERVICES
SCANNING, OCR WITH EDITING & INDEXING SERVICES
INTERNET/ ONLINE/ WEB RESEARCH

13. DISADVANTAGES OF BPO ODD
WORKING HOURS HEALTH ISSUES
ABUSIVE CLIENTS
AGE FACTOR
SOCIAL ISSUES/ ALCOHOL
CONSUMPTION/SEX
FUTURE TREND OF CALL CENTER
JOBS

14. ADVANTAGES OF BPO
Cost reductions- Cost reduction is done through process improvements, reengineering, and the
use of technologies that reduce and bring administrative and other costs under control
.Concentration on core business- With the day-to-day back office operations taken care of, the
management is free to concentrate more on the core business of the company.
Outside expertise- The company is saved from the hassles of recruiting and training personnel.
BPOs ensure that experts from another company provide the needed guidance and skills.
Cater to changing customer demands- It is another great advantage of outsourcing business
processes. Many BPOs provide the management with flexible and scalable services to meet the
customers’ changing requirements, and to support company acquisitions, consolidations, and
joint ventures.
Revenue increase- As stated above, by outsourcing non-core processes, companies can
concentrate on increasing their sales and market share, develop new products; spread out into
new markets, and increase customer service and satisfaction

15. WHY PEOPLE PREFER BPO… DID NOT GET A
BETTER JOB
FIND NOTHING BETTER TO DO
EDUCATION LEVEL DOESN’T MATTER
GOOD WORK ENVIRONMENT
GOOD BENEFITS
FLEXIBILITY OF TIME
ATTRACTIVE LIFESTYLE
TRANSPORT FACILITY
LEAVE BPO…
NO GROWTH OPPORTUNITY/ LACK OF PROMOTION
FOR HIGHER SALARY
FOR HIGHER EDUCATION
MISGUIDANCE BY THE COMPANY
POLICIES AND PROCEDURES ARE NOT CONDUCIVE
PHYSICAL STRAINS
UNEASY RELATIONSHIP WITH PEERS OR MANAGERS