BPO: Business Process Outsourcing
The full form of BPO is Business Process Outsourcing. BPO is the contract of a company with a third party or external provider of services in relation to the responsibilities of its operations and business processes. It is a cost-saving measure that allows companies to outsource their non-core functions of behavior. BPO services include payroll, Human Resources (HR), accounting and customer/call center relations. Business Process Outsourcing (BPO) is also known as information technology enabled services (ITES).
BPO Options
- Onshore Outsourcing: It is also known as Domestic Outsourcing. It refers to receiving BPO services from someone within the same country. An example is when a USA-based company hires a USA-based outsourcing firm.
- Nearshore Outsourcing: This refers to receiving BPO services from someone in neighboring countries. An example of this is if your company is in the USA and you outsource to Mexico.
- Offshore Outsourcing: This refers to receiving BPO services from an external organization in a country other than the neighboring countries. One example is a company based in the United States outsourcing to a company in India.
Need of outsourcing
- To focus on core business activity.
- To benefit from external expertise.
- To reduce business expenses.
- To increase profits.
- Reduce Risk: Your partner company helps reduce risk factors for your company by dividing and delegating operations.
Disadvantages of Outsourcing
- Existing employees may feel threatened.
- Product/service quality may decline.
- Communication problems (language, time zone).
- Control over policies and procedures may be reduced.
- A threat to data security.
Difference between BPO and call center
BPO is an organization responsible for one process of another business organization. It is used to save costs or gain productivity. On the other hand, the call center is a part of the customer’s business. This includes handling telephone calls. It is used to resolve customer complaints and requests over telephone calls. A call center can be considered a BPO, but a BPO is not a call center.
Other full forms of BPO
| Full Form | Category |
|---|---|
| Broker Price Opinion | Stock Exchange |
| Brookfield Properties Corporation | NYSE Symbols |
| Band Parents Organization | Schools |
| Benzoyl PerOxide | Chemistry |
| Black Police Officer | Police |
| Brutality Power Overwhelming | Military |
| Bath People Only | Funnies |
| Bonus Point Opportunity | Gaming |
| Business Process Optimization | General Business |
| Board of Permanent Officers | Universities |
| Baltic Ports Organization | Professional Organizations |
| Bellevue Philharmonic Orchestra | Music |
| Bankers Pay Order | Banking |
| Bar Poker Open | Poker |
| Barracks Petty Officer | General |
| Bermuda Post Office | USPS |
| Biologic Preservation Organization | General |
| Blanket Purchase Order | General |
| Boston Philharmonic Orchestra | Music |
| Brisbane Philharmonic Orchestra | Music |
| Business Process Offshore | Business |
| Ball Possession Offence | Soccer |
| Binary Painter Operator | Funnies |
| BioProspect, LTD. | ASX Symbols |
| Blood Program Office | Military |
| Border Patrol Officer | US Government |
| Boss Playa Organization | Gaming |
| British Portfolio Trust | London Stock Exchange |
| Buffalo Philharmonic Orchestra | Music |
| Business Process Offshoring | International Business |