What is business process outsourcing (BPO)? BPO is the process of hiring another company to handle business activities for you. BPO is distinct from information technology (IT) outsourcing, which focuses on hiring a third-party company or service provider to do IT-related activities, such as Project Management, Network Security Services and LAN and WAN Development, Data Centre Operations, or Assessment. These outsourcing deals frequently involve multi-year contracts that can run into hundreds of millions of dollars. Often, the people performing the work internally for the client firm are transferred and become employees for the service provider. Dominant outsourcing service providers in the BPO fields (some of which also dominate the IT outsourcing business).
(BPO) is a strategic step for companies looking to improve service levels, reduce costs, streamline processes, improve process efficiencies, and gain access to best-in-class processes without investing in requisite technology and skills. Today, customers want to partner with BPO vendors who can add value to their business and provide competitive differentiation. To meet this need, BPO industry is evolving from a labour arbitrage “Lift and Shift” model towards a value driven Utility model.