Business Process Outsourcing Pt 2 of 3

Business Process Outsourcing Pt 2 of 3

7/25/2014 Umut Türker 1801 Times Read

The current definition of KPO encompasses R&D, product development and legal e-discovery, as well as a number of other business functions".


Yet another related term is BTO or Business Transformation Outsourcing. "This refers to the idea of having service providers contribute to the effort of transforming a business into a leaner, more dynamic, agile and flexible operation". I suppose that this has always been the ideal of BPO but with BTO it is more of a focus or goal.


Finally, this website defines BPO as "the process of hiring another company to handle business activities for you". I like this definition the best. In the United States, BPO is a dirty word. Politicians use it to mean loss of jobs.


But does it? It is true that most articles discussing the economic impact or benefits of BPO discuss those in India, the Philippines or a few other isolated places. It is also true that BPO can cause an immediate loss of a job or jobs. If a person is processing payroll for a company and the company decides to outsource the job to a company in another country (or even in the same country) then that person will lose his job. However, if he is efficient then he should be able to find another job quickly. If he is efficient then he could also quickly learn related skills and find another position within that company or another company. If he is not efficient then maybe he should never have been hired and maybe he was detrimental to the customers, investors and employees of that company.

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But does it? I cannot find any hard numbers, but I have seen many photos of enormous number of women at telephone switchboards up through the 1950s or early 1960s in the United States. This was replicated in each and every city in the United States.