Business Process Outsourcing.The transfer of internal business processes,such as customer relationship management,finance and accounting,human resources,and procurement,to an external service provider that improves there processes and administers these functions to an agreed servic standard and,typically,at a reduced cost.
A major part of outsourced word today,call centers,falls under this heading.Some top outsourcing destinations provide little or no IT or software-related outsourcing services,and yet rank high in global outsource rankings.For example,the Philippines ranks among the top five in some surveys,and yet does very little IT work.However,it is a major destination for call center agents.
Outsourced call centers simply create benefits for the client company by utilizing lower-cost labor to handle customer service inquiries.Although many companies now utilize complex automated telephone menus to reduce the number of operators employed,some calls are simply unable or unwilling to conduct transactions or resolve questions electronically.Because of the high cost of maintaining such call centers in North American and Western European markets,these services,especially for English-language customers,are increasingly being outsourced to English speaking talent pools overseas,namely India and the Philippines.Similarly,Cantonese-speaking areas in southern China perform this function for many businesses based in HK.
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