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What is BPO?
1Business process outsourcing
(
BPO
) is a form of outsourcing that involves thecontracting of the operations and responsibilities of a specific business functions (or  processes) to a third-party service provider. Originally, this was associated withmanufacturing firms, such as Coca Cola that outsourced large segments of its supplychain.
[1]
. In the contemporary context, it is primarily used to refer to the outsourcing of services.BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front officeoutsourcing - which includes customer-related services such as contact center services.BPO that is contracted outside a company's country is called offshore outsourcing. BPOthat is contracted to a company's neighboring (or nearby) country is called nearshoreoutsourcing.Given the proximity of BPO to the information technology industry, it is also categorizedas an
information technology enabled service
or 
ITES
. Knowledge processoutsourcing(KPO) and legal process outsourcing (LPO) are some of the sub-segments of  business process outsourcing industry.2BPO as expanded sounds as Business Process Outsourcing and can be aptly defined asthe act of utilizing the services of a third party by a company in order to perform its back office operations that might be payroll administration, customer help desks/ call centers,tele- marketing, accounting, billing; the list is endless.Business Process Outsourcing includes the following areas and a lot more
•
Back office operations
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Customer Relationship Management
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Call Centers and telemarketing
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Tele-servicing and product support
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Payroll maintenance
•
Finance / Accounting/billing
•
Human Resources
•
Logistics Management
•
Supply Chain Management
 
•
Medical transcription
•
Back Office Operations
•
Insurance Claims Processing
•
Legal database maintenance
The BPO Industry
The BPO industry has flourished at a frantic pace in the last few years and companieshave ended up with huge savings by being a part of the industry. By outsourcing their  back office business processes to cheaper nations like China, India, Philippines, Mexico,South Africa etc companies can cut costs, better concentrate on their core businesses andstrengths, ensure better customer satisfaction and in a way get an edge over their competitors. A report suggests that US firms have saved nearly $8 billion throughoutsourcing to third world nations like India.
•
Benefits of BPO
•
Increase productivity
•
Cut operational costs
•
Provide better service
•
Save costs
•
Improved accountabilityThe BPO boom seems to be increasing everyday with more and more companiesdeciding to follow the race, making conditions really viable for a positive growth in theBPO industry. You can make money online through BPO.
Reasons for outsourcing 
Organizations that outsource are seeking to realize benefits or address the followingissues:
•
Cost savings
. The lowering of the overall cost of the service to the business. Thiswill involve reducing the scope, defining quality levels, re-pricing, re-negotiation,cost re-structuring. Access to lower cost economies through off shoring called"labor arbitrage" generated by the wage gap between industrialized anddeveloping nations.
[
 
•
Focus on Core Business
. Resources (for example investment, people,infrastructure) are focused on developing the core business. For example oftenorganizations outsource their IT support to specialized IT services companies.
•
Cost restructuring
. Operating leverage is a measure that compares fixed costs tovariable costs. Outsourcing changes the balance of this ratio by offering a movefrom fixed to variable cost and also by making variable costs more predictable.
•
Improve quality
. Achieve a step change in quality through contracting out theservice with a new service level agreement.
•
Knowledge
. Access to intellectual property and wider experience and knowledge.
 
•
Contract
. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.
•
Operational expertise
. Access to operational best practice that would be toodifficult or time consuming to develop in-house.
•
Access to talent
. Access to a larger talent pool and a sustainable source of skills,in particular in science and engineering.
•
Capacity management
. An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
•
Catalyst for change
. An organization can use an outsourcing agreement as acatalyst for major step change that can not be achieved alone. The outsourcer  becomes a Change agent in the process.
•
Enhance capacity for innovation
. Companies increasingly use externalknowledge service providers to supplement limited in-house capacity for productinnovation.
•
Reduce time to market
. The acceleration of the development or production of a product through the additional capability brought by the supplier.
•
Commodification
. The trend of standardizing business processes, IT Services andapplication services enabling businesses to intelligently buy at the right price.Allows a wide range of businesses access to services previously only available tolarge corporations.
•
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.
•
Venture Capital
. Some countries match government funds venture capital with private venture capital for startups that start businesses in their country.
•
Tax Benefit
. Countries offer tax incentives to move manufacturing operations tocounter high corporate taxes within another country.
 Activities for outsourcing 
What is Outbound Calling?
As a job duty descriptor, you may see or hear the term
outbound calling 
. As a homeowner or business executive, you’ve likely experienced the result of outbound calling first hand.Outbound calling refers to phone calls made by a company to a specified list of contacts.In sales, outbound calling encompassestelemarketing, lead generating, and other stepsnecessary in the sales process. As opposed to employees who handle inbound calling, employees who perform outboundcalling may be required to abide by certain laws that apply to their job or type of work.When a job description requires employees to handle inbound calling, they are usually
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