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Business Process Outsourcing(BPO)


Business process outsourcing (BPO) 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. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain.[1] In the contemporary context, it is primarily used to refer to the outsourcing of business processing services to an outside firm, replacing in-house services with labor from an outside firm.

BPO is typically categorized into back office outsourcing - which includes internal business functions such as human resources or finance and accounting, and front office outsourcing - which includes customer-related services such as contact center services.

BPO that is contracted outside a company's country is called offshore outsourcing. BPO that is contracted to a company's neighboring (or nearby) country is called nearshore outsourcing.

Today, there is an increase of organizations who have adapted to outsourcing to help them strengthen their financial status and maintain their competitiveness in the market. While many enterprises enjoyed the benefits of IT outsourcing, they also want to gain more from outsourcing and select Business Process Outsourcing (BPO). In the recent years, BPO is a trend for many enterprises who want to run their daily operation in an efficient and cost-effective way and focus on their core competencies.

In China, BPO is now the fastest growing industry. The Chinese government sees the potential growth of global and domestic BPO and strongly supports the BPO business. China has gained the ground of criteria such as financial attractiveness, people and skills, and business environment.