BPO, BusinessProcessOutsourcing, English full name: business process outsourcing. BPO refers to that enterprises outsource some repetitive non-core or core business processes to suppliers to reduce costs and improve service quality by means of long-term contracts.
KPO (KnowledgeProcessOutsourcing). Knowledge process outsourcing (KPO) is a highly intelligent continuation of business process outsourcing (BPO) and the highest category of BPO. Generally speaking, it refers to contracting a specific business within a company to an external professional service provider.
The central task of KPO is to create value for customers with business expertise rather than process expertise.
The difference between the three is mainly the difference in business:
1, ITO emphasizes the outsourcing of technical fields, mainly including IT software development, hardware maintenance and integration of basic technical platforms.
2.BPO emphasizes business process management. Focus on solving business processes and operational benefits, such as data information collection, integration, analysis, outsourcing services, human resource management services, supply chain management services, etc.
3.KPO pays more attention to the outsourcing of high-end R&D activities, mainly involving telemedicine services and pharmaceutical R&D. ..
Extended data:
The role of external services:
Outsourcing helps enterprises or organizations to focus more on their core business. Outsourcing partners bring you knowledge and increase backup management time. When executives focus on their professional business, they can reduce operating costs and improve the overall quality of products.
According to a study by the outsourcing association, outsourcing has saved enterprises and governments more than 9% of their costs, while their capabilities and quality have improved by 65,438+05%. Companies can acquire international knowledge and technology that are not available internally. Outsourcing liberates the company's financial capital and uses it for activities that can achieve the maximum profit return. Outsourcing has enabled some new businesses to be realized.
Some small companies and startups can achieve rapid global growth by outsourcing a large number of operational functions.
On the one hand, effective outsourcing behavior enhances the competitiveness of enterprises.
In the process of implementing the management system, outsourcing those non-core departments or businesses to corresponding professional companies can save a lot of costs and is conducive to efficient management.
For example, if a production enterprise organizes a fleet to transport raw materials and products, its cost will greatly increase in two aspects:
1, the management cost increases because it has no management experience in the transportation field;
2. Due to poor management, the transportation link seriously affects the production and sales work, resulting in an increase in production and sales costs. If the transportation business is outsourced to a professional transportation enterprise, the above costs can be greatly reduced.
On the other hand, fierce market competition also makes enterprises face great challenges.
With the intensification of market competition, focusing on one's core business has become one of the most important survival rules for enterprises. Therefore, outsourcing has become an important commercial means adopted by more and more enterprises because of its characteristics of effectively reducing costs and enhancing core competitiveness of enterprises. Duroc, a famous American management scholar, once predicted that in ten to fifteen years, any enterprise that only provides back-office support without creating turnover should be outsourced.
Market size of software outsourcing services in China
For example, when the economy is depressed, enterprises will lay off some non-core business departments, which is often a last resort, which has a great negative impact, team stability, extra expenses and so on. However, if these non-core businesses are outsourced to professional organizations at the beginning, the losses will be minimized.
According to IDC statistics, the global outsourcing service expenditure from 65438 to 0998 is $99 billion. IDC predicts that by 2003, the global outsourcing service expenditure will exceed $65.438 billion. During this period, the compound annual growth rate of the global outsourcing service market was 12.2%, and that of the Asia-Pacific region was 15.438+0%.
Although the global market of 200 1 is depressed, China's IT service market stands out, with a growth rate of 46.3%. IDC predicts that by 2006, the scale of China IT service market is expected to exceed103 billion US dollars, and the compound annual growth rate of 200 1 to 2006 is 53%.
According to IDC data, the IT service market in China is dominated by conventional services, including system integration, hardware support, installation and customer application software management. Higher-end service projects such as consulting and outsourcing have development potential.
In short, it is an inevitable trend to accept the new business philosophy of outsourcing, and outsourcing services are imperative.
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