Gujarat BoardEnglish MediumSTD 11 CommerceOCMCommunication. E-Commerce and Outsourcing3 Marks
Question
Write short note: Business Process Outsourcing $(BPO)$.
✓
Answer
What is outsourcing ?
When any process or any function of business is assigned to .any group for specific period is called outsourcing.
Normally large business units assign their subsidiary miscellaneous administrative work outside.
Some business units take the benefit of outsourcing by intellectual and knowledgeable experts for their main function also.
The concept of $BPO$ : (Business Process Outsourcing) :
Business Process Outsourcing means to obtain services of other company or group on the basis of contract to complete.
Special functions and process of the company. e.g. call centre work of data entry, work of tele-accounting etc.
The countries where human resources are available at cheaper rates for specific type of work have been much popular. China and India are more popular for outsourcing.
Importance (necessity) of BPO : It can be noted as under :
Cost cutting :
Administrative expenses can be reduced through outsourcing of market research, data entry, billing, purchase of business unit etc.
Increase in Profit :
Business unit assigns important work for outsourcing and saves time spent on ordinary administrative work.
As a result important function such as development of new product, satisfying customers by providing better services, increase in sale, expansion of business and thereby can increase growth of business.
Concentration on main business :
Business units assign daily administrative functions outside and management can concentrate on main matters related to business.
This leads to more efficiency in business.
Changing of demand can be satisfied :
Through outsourcing of business, process management can satisfy changing demands of customer.
Due to this, the customers get more facility so stable customer class is formed.
Benefit of efficiency
Business units recruit experts and give them training and maintain quality but it is all much expensive. Business units can maintain quality by getting the outsourcing done of important functions. .
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