Business process outsourcing

From CEOpedia | Management online
Business process outsourcing
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Use of business process outsourcing allow to increase enterprise value. The use of this type of outsourcing is connected with the transfer of company's processes to external service provider, after critical analysis and the improvement of this process. The process is seen as a set of activities requiring inputs and generating result on the output.

Process is described as a structured, measurable set of actions designed to produce a specific result for a specific client. In BPO the contractor not only assumes responsibility for the implementation of the process, but also commits to the reengineering of this process, including the implementation of new technology or its continuous improvement. Such approach usually requires studies on process changes and their impact on cooperation of service provider with other organizational units in company.

From the point of view of the service provider who is entrusted to the same commitment to improving performance as the company, BPO shows significant similarity to transformational outsourcing.

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