PROJECT WORK ON BPO

SUBMITTED BY : AFRIN KHATUN

ROLL NO: 2
SUB: BUSINESS STUDIES
INTRODUCTION TO BPO

Business process outsourcing (BPO) contains the

transmission of processes along with the related operational
activities and responsibilities, to a third party with at least a
guaranteed the same service level and where the client
contains a firm grip over the (behavior of the) vendor for
mutual long term success. BPO is positively associated to the
search for more efficient organizational designs: cost
decrease, productivity increase and innovative capabilities.
Normally, BPO is undertaken by developed firms. For
example Coca Cola, where almost the total supply chain is
outsourced and the company is essentially becoming a
marketing organization. However, BPO is nowadays fast
conquering the service oriented firms as well. A famous
example is provided by the Bank of America, who outsourced
their complete HR function to Exult, one of the important
Human Resources BPO vendors.

 DEFINITION OF BPO
Business process outsourcing (BPO) is the contracting of non-
primary business activities and functions to a third-party
provider. BPO services include payroll, human resources
(HR), accounting and customer/call center relations.
BPO is also known as information technology enabled
services (ITES).
 ADVANTAGES OF BPO

The following are BPO advantages:

 Business process speed and efficiency are enhanced.
 Employees may invest more time in core business
strategies to bolster competitive advantage and enhance
value chain engagement.
 Organizational growth increases when capital resource
and asset expenditures are not required, which averts
problematic investment returns.
 Organizations are not required to invest in unrelated
primary business strategy assets, facilitating a shift in
focus to specific competencies.

 DISADVANTAGES OF BPO


 Data privacy breaches

 Underestimated running costs
 Overdependence on service providers
 OUTSOURCING FUNCTION OF BPO
 According to
Srivastsava and Theodore
(2006), some of the
functions that are most
 outsourced are
 IT : Systems integration and information systems
consulting; Application

 development and support, IT training, and so on. In

fact, IT plays such a
 pivotal role in BPO that almost all the functions
covered by BPO are ITES.
 Back-office data entry and processing; customer
contact services (such as Telemarketing,
Complaints, Collection support)

 complaints, telemarketing, collections support).

 Finance: Tax compliance and planning, financial
systems application support.

 general and financial accounting, expenses

processing, accounts payables and
 receivables, debt collections, financial reporting.
 Human resources: Payroll and benefits
management, superannuation

 administration, employee help desk, training,

recruitment and selection
 support, human resource information systems
(HRIS), and wage and salary
 administration.
 Operations/logistics:
Ordetracking/claims/application/ payment
processing.

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