Business Process Outsourcing
Morris Kamau N Introduction Business process outsourcing (B.P.O) is a subset of Outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider (Tas, J. & Sunder, S. 2004) it can also be simply described as the contracting of a specific business task to a third-party service provider.
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This process starts when a company on its verge of expansion to the global markets in other countries regardless of its nature as onshore (countries within the same continent) or offshore (countries not within the borders of a continent). There is a structured arrangement, usually between an organization and an outsourcing partner to perform certain services, otherwise …show more content…
Business Process Outsourcing has opened a platform for Reduction and control in operating costs. Any good B.P.O is highly equipped with well trained professional human resources as well as good infrastructure (Robert Handfield, 2006)
It also has helped Improve host company focus, thus increasing productivity and growth of a company
It also helps a company Gain access to world-class capabilities, as the flexibility provided helps the company provide the same quality as its mother company Business process outsourcing performs a critical role in supporting the evolving business models of global companies and also boosting growth, expanding in emerging markets, and improving supply chain effectiveness are top business priorities (Forbes Insight, 2009)
BPO allows for flexibility in that can be seen when a company can maintain growth goals while avoiding standard business bottlenecks that would have otherwise been experienced without bpo therefore allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded. (Leavy, 2005)