Business Process Outsourcing (Bpo)

Meaning & Definition

Business Process Outsourcing (BPO) is a business arrangement where an external vendor or service provider performs functions on behalf of a business (such as payroll, recruitment, and customer service). BPO can help organizations reduce their operational costs, improve efficiency and allow organizations to concentrate on their primary business functions.

BPO provides various advantages:

• It eliminates operational burdens associated with performing non-strategic functions.
• BPO provides specialized knowledge and technological innovation to improve the efficiency of business processes.
• It assists organizations in controlling costs and optimizing resource utilization.
• Improves process consistency and ensures high-quality service.
• Allows HR departments to focus on workforce strategy. 

Compliance and policy requirements include:

• Ensure that BPO arrangements comply with data confidentiality and information security.
• Follow vendor management and service-level agreements (SLA).
• Comply with all legislative, payroll and other obligations on behalf of employees.