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Monday, June 23, 2008

Business Process Outsourcing (BPO)


BPO or Business process outsourcing is a widespread approach in both small and big companies today. BPO is a method of employing another company in handling business activities such as data center operations, application management and development, testing, and quality assurance. It is used by many firms as a core in focusing competencies, and a technique of cost cutting. It also comprises the process management, the people to operate the service and the software. BPO is utilized to achieve the aspiration of companies to gain the access of specific category expertise, achieve economies of scale, and permit the admission to technology infrastructure without building their own. In engaging outsourcing of core business processes, the most important factor is to find the right partner. Every company that proposes outsourcing services must demonstrate if the process outsourced is of strategic importance, if so, deep domain expertise is necessary and that they have the required process proficiency. As part of outsourcing industry, BPO is dependent in information technology, which focuses on taking services to a company or service provider which offers opportunities buyers of any industry and suppliers by just recognizing the services that should be outsourced.

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