Business Process Outsourcing (BPO): BPO means that some business processes are developed by service providers that are not part of the basic company´s operation. These can be internal or external and are supposed to be better in costs or more eficcient. This practice is part of the transformations brought by information technologies (IT), which allow that a part of the work of the company can be made in different locations and by other specialized companies, generally at a lower cost or with more efficiency.
Currently, much methodologies for enterprise improvement have pointed out the necessity to eliminate form the tasks in the organization those activities that are not essential and that can be made by third parties, aiming to gain agility in the very nuclear process which give the differential value: “Removing these functions from their internal operations enables organizations to reduce payroll and other overhead. In an era when executives have been admonished by business commentators and analysts to focus on core competencies, BPO offers an
This practice can bring important competitive advantages, but it also has to be carefully examined by each company, because it has also some legal risks as well as economic ones, For that reason, business outsourcing experts, and also legal outsourcing experts in each country’s laws and regulations have to be consulted before making the most adequate decisions.