What is the job of BPO industry?

What is a job in the BPO industry:

The main purpose of business process outsourcing is to free a company's limited resources from non-core business and focus them on its core business, with a view to better and more focused service to the core business.

Business process outsourcing is not only conducive to improving the company's own core business capacity and efficiency, as most of the outsourcing usually choose the region or country with human resources advantage, which also relatively reduces the cost of this part of the business process. Moreover, it is also beneficial to improve the automation ability of this part of the process through the operation of professional outsourcing party.

Outsourcing is categorized into two types based on the geographical distribution of suppliers: inbound outsourcing and offshore outsourcing.

1. Inbound Outsourcing

Inbound outsourcing means that the outsourcing provider is from the same country as its outsourcing supplier, and therefore the outsourcing work is done domestically.

2. Offshore Outsourcing

Offshore outsourcing means that the outsourcing vendor and its outsourcing supplier come from different countries, and the outsourcing work is done across borders. Due to differences in labor costs, outsourcers usually come from countries with higher labor costs, such as the United States, Western Europe and Japan, while outsourcing suppliers come from countries with lower labor costs, such as India, the Philippines and China.

While onshore and offshore outsourcing share many similar attributes, they differ significantly. While onshore outsourcing places more emphasis on core business strategies, technology and expertise, shifting from fixed to variable costs, economies of scale, and value-added over cost reduction, offshore outsourcing primarily emphasizes cost-savings, availability of skilled labor, and the use of lower production costs to offset higher transaction costs.

When considering whether to offshore, cost is the deciding factor, followed by technical competence, service quality and service providers.

Baidu Encyclopedia - Business Process Outsourcing