What is Business Process Outsourcing

Bpo in general is sort out into 2 types :
a)Back Office Outsourcing which consist of internal business functions like human resources or finance and accounting,
b) Front office outsourcing - which enclose customer-related services such as call center
BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing.
One of the main advantages of BPO is the technique in which it helps to boost a company's litheness. Most services provided by BPO vendors are offered on fee-for-service bases which assist a company more flexible by altering fixed into variable costs. A changeable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more flexible. Outsourcing will give a firm with augmented flexibility in its resource management and may lessen response times to major ecological changes.
The next way in which BPO present to a company's flexibility is that a company is able to focus on its core competencies, without being loaded by the difficulty of technical fetters.
Reasons for outsourcing
Firms that outsource are looking for the following benefits :
Cost savings. The lowering of the overall cost of the service to the business. This take place dropping the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring.
Core Business. : By outsourcing the work to the third party vendor the firms can concentrate on their core business which increases their productivity.
• get better quality. Attain a step change in quality through contracting out the service with a new service level agreement.
• Familiarity. Access to logical property and wider experience and knowledge.
• Contract. Services will be provided to a legally binding contract with financial penalties and legal redress.
• Operational knowledge. Access to operational best practice that would be too difficult or time consuming to develop in-house.
• Reduce time to market. The acceleration of the development or production of a product through the additional capability brought by the supplier.
• Risk management. An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.[20]
• Tax Benefit. Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country