What is Outsourcing?
- July 29, 2022
Outsourcing is the act of delegating or contracting tasks to an external third party. In most cases, tasks are outsourced to save time and money, or to make use of someone else’s expertise. Outsourcing comes in all sorts of forms, and businesses of all shapes and sizes make use of the benefits of outsourcing. You might outsource the upkeep of your office to a cleaner, or the manufacturing of products to a factory overseas, or elements of customer service to an offshore call centre.
Outsourcing is a broad catch-all and isn’t just sending jobs overseas for cheaper labour, though that is sometimes the case. Outsourcing is used to keep businesses productive and efficient in a globalized economy so it’s important to understand how it can be utilised effectively within your business to provide value for your company.
What is Business Process Outsourcing?
Business process outsourcing (BPO) is a form of outsourcing which focuses on operational activities and business processes such as administration, HR, customer service, sales, marketing, payment processing, etc.
BPO enables you to offload operational tasks to a third party so that, as the business owner, you can keep your focus on developing and improving your core competencies.
