Types of Outsourcing and Its Different Sectors

Outsourcing can be defined as a practice used by the companies by handing over the tasks, operations, jobs, or process to a contracted external organisation to reduce costs and improve efficiency. Thus, data entry services in India or in other countries play a crucial role as a specialist external service provider.

Below there are detailed illustrations of different sectors of outsourcing:

1. Business Process Outsourcing (BPO)

Business process outsourcing is the most important part of data outsourcing services in India and in other countries. BPO services can be divided into two segments – Back office related works and Front office related works

Back office related works include internal works like billing, purchasing, and data service etc whereas front office related works include client related works like marketing, customer support, technical support etc. The main advantage of BPO service is that it offers flexibility to the corporate organisations by focusing mainly on core competencies.  Business Process Outsourcing helps in maintaining a company’s growth by fulfilling its goals with entrepreneurial speed and agility.

Some important features of BPO service are discussed below:

• This outsourcing service provides improved and efficient service with faster and larger productivity
• BPO service is gradually gaining popularity for its cost-effective aspect
• A standard BPO service offers less error and improved quality work.
• It helps in constructing business value and strategic differentiation.

All these above features of Business Process Outsourcing help the companies to achieve their goals in the current competitive market.

2. Knowledge Process Outsourcing (KPO)

Knowledge Process Outsourcing deals with the core information and data related business works which is an essential part of a company’s value chain. KPO has become an important part of outsourcing service because of its ability to increase specialised knowledge and expertise, its ability to reduce cost reduction and its capability to simplify the complex business process.

It generally involves an advanced level of research with proper analytical and technical skills as it works at a slightly higher level than the BPO.

Some important features of KPO service are discussed below:

• KPO provides high-end services with assured productivity improvement.
• This outsourcing service plays a significant role in reducing the cost, helping the company to maintain lower rates with better service solutions.
• Improved HR is another great advantage of this service. It provides cost-effective with efficient human resources.

3. Information Technology Outsourcing

IT Outsourcing refers to a company’s outsourcing of computer or internal works like programming, to other companies. It generally refers to the outsourcing of all parts of IT functions to an external party. Information technology outsourcing can be defined as a division of Business Processing Service.

Some important features of IT Outsourcing are discussed below:

• IT outsourcing works efficiently with fewer resources and it effectively reduces costs.
• It provides utility service, cloud-enabled outsourcing.
• It helps in structuring the best possible contracts.

In conclusion, it can be said that outsourcing data plays a pivotal role as most of the organisations are unable to handle all parts of the business process. So here, outsourcing service offers expert service with proper concentration on core process.