Answer:
Business Process Outsourcing (BPO) means contracting out specific business processes or non-core activities, such as customer care, payroll, accounting or data entry, to an outside service provider. Its advantages are:
- Focus on core areas: The company can concentrate on its main (core) activities while specialists handle the non-core work.
- Cost reduction: Outsourcing to agencies, especially in low-cost countries, reduces expenses on staff, infrastructure and training.
- Access to expertise and technology: The company gets the services of skilled professionals and the latest technology without investing in them.
- Better quality and efficiency: Specialised BPO firms deliver work faster and with better quality.
- Round-the-clock service: Because of time-zone differences, work can continue 24×7, improving customer service.
- Employment generation: BPOs create large-scale employment for educated youth, especially in countries like India.
