BPO is an abbreviation for business process outsourcing
BPO, or business process outsourcing, refers to subcontracting individual business processes from a company to a specialised third-party provider. It means that not only individual tasks or subtasks are outsourced, but entire business processes. These activities and processes are delegated to external service providers who are qualified thanks to their business model. More and more companies are relying on BPO in many areas in order to save costs on staff and equipment, as well as to reduce risks.
BPO creates capacity for core business
BPO lets companies can separate from areas that do not belong to its core business, but yet are still important such as human resources, finance and accounting, recruitment or customer support. Individual fields such as online research, catalogue management and product research or data collection can also be easily outsourced. BPO enables companies that outsource the ability to concentrate on their main daily business and increase the efficiency of their processes. This is done in the following way: since many services that are outsourced include activities that do not need to be carried out every day, previously employees who have other jobs in the company were spending their time completing them. These employees can now once again concentrate on their own work.
BPO minimises business risk as well because the provider is highly experienced in standardising and automating business processes which means the operating costs will reduce significantly. In addition, you can also reduce the capital used for staff and material used. Flexible cost structures arise which immediately adapt to the optimised business processes.
Through the standardisation of processes by the BPO provider the processes become more efficient, which leads to improved service quality in the company that is outsourcing. The provider is specialised, has staff and suitable IT structure and can therefore ensure a higher level of quality. Outsourcing service level agreements ensure compliance with deadlines and processing within a specific time frame.
You can find more information on business process outsourcing on Wikipedia: https://en.wikipedia.org/wiki/Business_process_outsourcing
or on the website of the outsourcing consultant insourcing-outsourcing (in German, however): http://www.insourcing-outsourcing.net/business-process-outsourcing-bpo-definition-ziele-beispiele/