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Business Process Outsourcing

Business Process Outsourcing or BPO is a rapidly growing subsection of the outsourcing industry. BPO encompasses a contractual agreement with a third party service provider to absorb an otherwise internal business process. The arrangement is typically cost-effective to the outsourcing party, while the staff, facility and functional expertise are the provider’s core competencies. Generally speaking, BPO is either Front Office or Back Office. Front Office outsourcing involves the provision of services like inbound or outbound telephone conversations, electronic mail, fax, chat, video and other forms of direct interaction with a client’s customer base. Typical applications of Front Office outsourcing include sales, customer support, technical support, collections, market research and scheduling/appointment setting. Back Office outsourcing includes, but is far from limited to, essential support tasks like data entry, claims and payment processing, HR support services, accounting services, creative services, IT support and technology development. The key difference between Front and Back office BPO is direct interaction with the end customer.

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