Types of Outsourcing
Some people are not aware that there are different types of outsourcing. They just assume that every job transferred to these outsourcing destinations could be lumped in one group.
This assumption is wrong because there are several types of outsourcing and these are grouped based on its nature and function. Since there is an increase rate of companies preferring the "multi-sourcing" approach, the types of outsourcing are more clearly defined.
This blog entry serves as a Primer for the types of outsourcing which I would be writing in my next blogging entries. This is to help you in deciding which kind of outsourcing would be beneficial and convenient for your companies.
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why don’t you just post it without any formalities?
Comment by alistair on June 15, 2008 8:10 am
The different kind of outsourcing includes:
1. BPO – BPO stands for Business Process Outsourcing. Major corporations in the US and Europe are outsourcing their back office operations to India to save costs. e.g. employee payroll, data entry, voice calling for back end activities etc. Although these jobs usually are not directly IT-related, their data-based orientation often means that they require IT departmental support to be successfully outsourced.
2. LPO – There is a new addition to the BPO family — legal process outsourcing or LPO. When it began, LPO consisted mostly of low-end transcription work, but no longer. LPO now includes a huge range of legal processes, such as patent application drafting, legal research, pre-litigation documentation, advising clients, writing software licensing agreements and drafting distribution agreements.
3. RPO – RPO stands for Research Process Outsourcing. This is popular in the biotech industry. Clients outsource their R&D work.
RPO also stands for Recruitment Process Outsourcing. RPO is a key component of Human Resource Outsourcing (HRO). The RPO team basically handles all the recruitment.
4. HRO – HRO stands for Human Resource Outsourcing. HR is getting outsourced to third party providers who can bring in the benefits of knowing the domain.
HR as an activity, it comprises of a group of activities, which include payroll management, training, staffing, benefits administration, travel and expenses management, retirement and benefits planning, risk management, compensation consulting, etc. These activities are outsourced by which the client can concentrate on their core competency.
In the US context, HR outsourcing is a huge area. For instance, nearly about 29-30 per cent of the outsourcing space is HR.
5. MBPO – MBPO stands for Medical Business Process Outsourcing.
To get more infomrmation on “Types of Outsourcing”, please mail me on mangesh.wankhade@gmail.com
Comment by Mangesh Wankhade on January 27, 2009 3:18 pm
LPO now includes a huge range of legal processes, such as patent application drafting, legal research, pre-litigation documentation, advising clients, writing software licensing agreements and drafting distribution agreements.
Comment by tower defense on May 5, 2009 2:02 am
one type of outsourcing that really helps executives and small businesses is the Virtual Assistance. services are remarkably widely available, from SEO to designs, writing and admin jobs. i have personally experienced http://www.assistmepro.com service and it’s just great!
Comment by ann eagler on March 4, 2010 6:44 pm
They are tree types of outsourcing BPO,KPO,& CALL CENTER. this main types of outsourcing in that call center have to kind of outsorcing 1) inbound 2) outbound.
Comment by sagar Kadam on January 27, 2011 5:44 pm