BPO or Business Process Outsourcing is the worldwide phenomenon hitting Australia right now.
BPO is the process of hiring third parties to provide non core administrative type services, for a contracted fixed duration and for a agreed price.
Generally the outsourced services fall may include finance, accounting, human resources, Information Technology, typing, personal assisting, sales administration and training.
Business Process Outsourcing Services allows businesses to concentrate on their core activities thus increasing their turnover at a reduced operating cost and with less management time.
The fee charged, may be either fixed thorough out the contract period or variable based on the services provided or a combination of both.
Another major drawback can be security issues. When the provider of the BPO services is not maintaining adequate security measures, as it claims, sensitive data is at risk. When issues arise, we tend to lose the goodwill of the our customers, thus losing the core business. So choosing the activities for outsourcing and internal process is a major key for success for outsourcing firm. Service level expectancies may fail, contractual issues may not be clear, charges may be more than projected, dependencies on the BPO services increases, thus ceasing the flexibility of internal process.
The outsourcing of subsidiary services provides the firm with more options for expansion, as capital and resources are freed, allowing more opportunities for further growth. As more resources, time and capital are freed from non-core or administrative activities, the speed of business process increases, thus improving client, customer and staff satisfaction, which is a key for business success.