Question

explain BPO unit in brief

Answer 1

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Answer 2

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Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. When business process outsourcing began, it applied chiefly to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains. However, it is now applicable to the outsourcing of services.

A business has multiple BPO options, depending upon whether it contracts its operations within or outside the borders of its home country. Business process outsourcing is considered offshore outsourcing if the contract is sent to another country where there is both political stability and lower labor costs or tax savings, for example, a U.S. company using an offshore BPO vendor in Singapore. BPO is referred to as nearshore outsourcing if the job is contracted to a neighboring country, for example, a U.S. company using a nearshore BPO vendor in Canada. Another option is onshore outsourcing, or domestic sourcing. This is BPO contracted within the company’s own country, although the vendors may be located in a different city or state, for instance, a company in Boston using an onshore BPO vendor in Philadelphia.

Because BPO often depends on necessary technology/infrastructure that allows external companies to efficiently perform their roles, it’s frequently referred to as information technology-enabled services (ITES).

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