HOME | ABOUT US | CONSULTING | RESEARCH INSTITUTE | JOURNAL | EUROPE | PAPERS | SUPPLIERS | FOCUS AREAS | EVENTS | NEWS | CONTACT US

Question List

Service Oriented Architecture for Offering Outsourcing Solutions

BEAT in ITO

Managed Services IT: Helping Caldwell Memorial Hospital become the Hospital of the Future

The Deal Zone: Getting Real About IT Outsourcing Agreements

Addressing the Challenges in Implementing or Consolidating Portals

Buyer-Driven Supplier Consolidation Will Change the ADM Industry

Vendor-Managed Inventory in IT

3. What exactly is BPO?

BPO is a term that has evolved over the years, and each time it evolves further, its definition has changed. Some people have not kept up with its evolution and, therefore, refer from time to time to old definitions or descriptions of BPO. It is not simply another term for outsourcing. In BPO, strategic value through outsourcing (see an explanation for outsourcing in FAQ #1) is created by creatively examining the process and changing the way it is actually performed. It is more than just changing who is performing the process. In BPO, the supplier not only takes on the responsibility to take over the function or business process, but it also reengineers the way it is done. That will include either putting in new technology to accomplish the process, or applying the existing technology in a new way to improve the process. In BPO, something about the way the process is currently being done gets fundamentally changed. Often it involves taking into consideration how a particular process in the buyer's company affects and interacts with other departments and functions in the company. BPO often increases a company's shareholder value. There are some very good explanations and illustrations of BPO and how it differs from outsourcing in the OutsourcingJournal article at www.outsourcing-journal.com/issues/nov1999/bpo_1.html. You will find additional information and explanations of how BPO works at our www.outsourcing-bpo.com site.

[Previous Question] [Next Question]