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Chapter 2. What is BPO? > WHAT IS OUTSOURCING?

WHAT IS OUTSOURCING?

If you try to trace the roots of outsourcing, you will find that it has been an age-old practice. Almost all businesses over the years, for instance, have delegated the work of balancing their accounts and auditing to accountants or specialist chartered accountants outside their company. The scale and areas of outsourcing, however, have increased manifold in the recent past.

Large companies, mostly multinationals, now outsource services like customer care (call centre services), e-mail services, and payroll to separate companies that specialize in each of these services, and are often located overseas. When a company outsources certain aspects of 'doing business, it is in a far better position to focus on its primary purpose, whatever that may be, since certain other details are being taken care of by the outside experts. It saves the company a large chunk of resources and attention that it might have spent to handle various other operations.


  

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