Outsourcing Services

The contracting or subcontracting of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average unit cost

Outsourcing is a common trend in information technology and other industries. Businesses outsource for services that are seen as intrinsic to managing a business and serving internal and external customers. Products, such as Web Development and Search Engine Optimization(SEO) services, such as Website and Google Local Listing, can be outsourced. In some cases, the entire information management of a company is outsourced, including planning and business analysis as well as the Website Design, Website Development, Website Maintenance, SEO Content optimization, etc.

Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Outsourcing is an effective cost-saving strategy when used properly.

Outsourcing is a cost-saving measure, and the practice can have significant impacts in sectors like manufacturing, Customer service jobs, such as those in a call center, and computer programming jobs are also outsourced by companies seeking ways to reduce costs. A large number of companies outsource at least some functions of human resources tasks, such as employee benefits management and payroll also.

Business Process Outsourcing

What is BPO

Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party provider. BPO services include payroll, human resources (HR), accounting and customer/call center relations. BPO is also known as Information Technology Enabled Services (ITES).

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Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party provider. BPO services include payroll, human resources (HR), accounting and customer/call center relations.

BPO is also known as Information Technology Enabled Services (ITES).

BPO categories are front office customer services (such as tech support) and back office business functions (such as billing).

The following are BPO advantages

  • Business process speed and efficiency are enhanced.
  • Employees may invest more time in core business strategies to bolster competitive advantage and enhance value chain engagement.
  • Organizational growth increases when capital resource and asset expenditures are not required, which averts problematic investment returns.
  • Organizations are not required to invest in unrelated primary business strategy assets, facilitating a shift in focus to specific competencies.

Knowledge Process Outsourcing

What is KPO

Knowledge process outsourcing (KPO) describes the outsourcing of core information-related business activities which are competitively important or form an integral part of a company’s value chain. KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise.

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Knowledge process outsourcing (KPO) is a form of outsourcing in which knowledge- and information-related work is carried out by workers in a different company or by a subsidiary of the same organization. This subsidiary may be in the same country or in an offshore location to save costs or other resources. Companies resort to knowledge process outsourcing when they have a shortage of skilled professionals and have the opportunity to hire skilled workers earning lower wages in another location for a lower overall cost.

Knowledge process outsourcing (KPO) is the allocation of relatively high-level tasks to an outside organization or a different group in a different geographic location. Examples of KPO include long-term jobs for intellectual, analytical and knowledgeable people within industries such as research and development, financial consultancy and services, business and technical analysis and many others.

The following are KPO advantages

  • Business process speed and efficiency are enhanced.
  • Employees may invest more time in core business strategies to bolster competitive advantage and enhance value chain engagement.
  • Organizational growth increases when capital resource and asset expenditures are not required, which averts problematic investment returns.
  • Organizations are not required to invest in unrelated primary business strategy assets, facilitating a shift in focus to specific competencies.

Legal Process Outsourcing

What is LPO

Legal outsourcing, also known as legal process outsourcing (LPO) refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company (LPO provider).

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Legal process outsourcing or LPO is the exporting of legal services to low-wage markets overseas. An increasing number of companies, large and small, are outsourcing legal work to destinations across the globe.

Beyond cost savings, legal process outsourcing offers many advantages including access to outside talent, round-the-clock availability, and the ability to quickly scale up or cut back operations.

India is currently the largest LPO destination. Like the U.S. and the U.K., India’s legal system is grounded in British common law. And, unlike China, which is emerging as an offshoring center, English is the language of instruction in Indian colleges and law schools. India also boasts one of the largest pools of English-speaking graduates in the world. Low labor cost is another major factor in sourcing work to India. In addition, India possesses a large, highly-qualified labor pool. Many Indian legal service vendors require a college degree as a bare minimum to employment. Most employees – even data entry workers – possess a graduate degree and most legal employees possess a law degree.

Legal process outsourcing is occurring in nearly all sectors of the legal industry. The work of lawyers, paralegals, legal secretaries and litigation support personnel is increasingly being performed by legal service providers on the other side of the globe.

A number of factors have fueled the legal process outsourcing trend, including

  • Globalization
  • Economic changes and the rising cost of legal services
  • The growth of the Internet
  • Increased automation of legal processes
  • Developments in data security
  • New technology tools