Business process outsourcing

[1] BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact centre (customer care) services.

Due to technological advances and changes in the industry (specifically the move to more service-based rather than product-based contracts), companies who choose to outsource their back-office increasingly look for time flexibility and direct quality control.

Among problems, which arise in practice are: A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges, and a dependence on the BPO which reduces flexibility.

For example, security of North American or European company data is more difficult to maintain when accessed or controlled in other countries.

From a knowledge perspective, a changing attitude in employees, underestimation of running costs and the major risk of losing independence, outsourcing leads to a different relationship between an organization and its contractor.

This model consists of a set of steps, to successfully identify, manage and control the business processes that are, or can be outsourced.

[22] Analytic hierarchy process is a framework of BPO focused on identifying potential outsourceable information systems.

On the other hand, an academic study by the London School of Economics was at pains to counter the so-called "myth" that robotic process automation will bring back many jobs from offshore.

This can result in a decline in the quality of goods or services, potentially damaging the company's brand and customer relationships.

[34] The BPO industry in the Philippines generated $22.9 billion in revenues in 2016,[35] while around 700 thousand medium and high skill jobs would be created by 2022.