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Definition of BPO, Business Process Outsourcing

I would like to start with the definition of BPO, Business Process Outsourcing.

While the definition is easily available on the web, I would like to make it layman and easy to understand.

Business Process Outsourcing means moving a company's work to another company that has the expertise in the work. For example:

If I open a sales company with 100 employees, I will have to give them salaries which needs attendance tracking, time tracking and calculation of  salaries accordingly. All this requires accounting knowledge and in my company I will only have sales people. So, instead of hiring a team of accountants, I will move my salary calculation work to an accounting company which has expertise of doing this.

Here, moving salary accounting is called  outsourcing.

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Comments

  1. Unknown19 May 2019 at 03:59

    Hello Kulwinder nice to read your blogs... I just want to know if BPO or BPM sector is takeover by Automation and Robots what's Next then???

    ReplyDelete
    Replies
    1. Kulwinder26 May 2019 at 08:13

      I don't see your name but this is a very intelligent question. I also happen to be the RPA / Automation Leader of my organization so I am equipped to answer this question well.

      I must say Automation has become the talk of the town but it is still in its very early stages so for it to be successful, there is still a lot of time for Automation to takeover a massive industry like BPM.

      Additionally, the BPM sector has transformed and it is not more a sector that does those repeatable jobs that can be automated. Our Industry does a lot of high end knowledge based jobs which need decision making, experience etc which RPA, ML will take a long long time to solve.

      Delete

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