What does BPO (Business Process Outsourcing) mean?
Business process outsourcing describes the outsourcing of business processes to external stakeholders. The aim of business process outsourcing is to outsource non-critical business processes and use the freed-up resources to concentrate on the company’s core tasks. A well-thought-out business outsourcing strategy can help to sustainably increase the efficiency and added value of the company.
What business process outsourcing solutions are available?
The most common outsourced activities include:
- Finance and accounting
- Payroll accounting
- company pension scheme
- Recruiting
- IT
There are various ways to implement BPO in a company. First and foremost, a distinction is made between primary and secondary business processes. Primary business processes include, for example, marketing, sales, research and production. Secondary business processes include, for example, human resources, recruiting and finance and accounting.
The principle of business process outsourcing is particularly useful within the product life cycle in order to integrate suppliers and customers into the value creation process. For example, software solutions can help to digitally map upstream and downstream process steps, such as a final inspection or maintenance work on a machine, and thus enable cross-company, networked collaboration.
What are the advantages of BPO?
- Stakeholders have specialist knowledge in this area
- The company can focus exclusively on its core business and no longer has to concern itself with secondary issues
- More efficient collaboration through targeted use of resources
- Compliance with standards
- Personnel resources can be reduced