BPO TRAINING IN ERNAKULAM

Business process outsourcing, or BPO, is the practice of hiring a third party to take care of specific work processes for your business. This can include things like your website content, your payroll, accounting, customer support, social media marketing, and many more.

 RISK FOR BPO

• Security breaches. The technology connection between the hiring company and the BPO provider creates another point of entry for bad actors, as organizations often need to share sensitive and regulated data with their service providers.
• Regulatory compliance requirements. An organization's regulatory requirements extend even to outsourced work, so it must ensure that the vendors it hires align with the laws the organization must follow and that the vendors adhere to the rules that govern the organization's outsourced work.
• Unanticipated or higher costs. Organizations can underestimate the amount of work that needs to be done, which can lead to higher costs than anticipated.
• Relationship challenges. Organizations can face communication problems with their outsourced providers, or they might find that there are cultural barriers.
• Overdependence on the external provider. An organization that outsources a function or service is tethered to the partner that performs the work. The organization must manage that relationship to ensure key objectives are met at the agreed-upon cost. If not, the organization may find it difficult to bring the operation back in-house or even move the contract to another outsourced provider.

• Increased potential for disruption. An organization must monitor for issues that could interrupt or permanently end the relationship with an outsourced provider. These include financial or workplace problems at the outsourced provider, geopolitical instability, natural disasters or changes in economic circumstances. Organizations must consider such risks and devise strategies on how to cope, which, in turn, adds complexity to their business continuity and disaster recovery.

  What are the different types of BPO?

  BPO is often divided into the following types based on the service provider's location:

• Offshore outsourcing occurs when an organization contracts for services provided with a company in a foreign country.
• Onshore outsourcing, or domestic outsourcing, happens when an organization contracts for services provided by a company that operates in the same country as the hiring organization.
• Nearshore outsourcing is when an organization contracts for services provided by companies based in neighboring countries.

Research firm Gartner categorizes BPO as either horizontal offerings, meaning those functions that are used across multiple industries, or vertical-specific offerings, meaning those that are industry-specific.

KPO, LPO and RPO

Business process outsourcing is sometimes categorized by the types of services being provided; the following three categories are commonly cited:

1. Knowledge process outsourcing (KPO) is when the outsourced service provider is hired not only for its capacity to perform a particular business process or function, but also to provide expertise around it.
2. Legal process outsourcing (LPO) is a type of KPO that is specific to legal services; these range from drafting legal documents and performing legal research to offering advice.
3. Research process outsourcing (RPO) -- another type of KPO -- refers to research and analysis functions; biotech companies, investment firms and marketing agencies are among the types of organizations that engage in RPO for services.
   

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