BPO

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BPO, or business process outsourcing, is the process of empowering third party specialist service providers to replace in-house staff in certain business areas.  Some of the most common areas subject to BPO are human resources (through headhunters and recruitment consultants), payroll (through specialist payroll providers), webdesign and IT and legal services. 
Outsourcing is, by and large, regarded as a cost saving mechanism, providing businesses with the opportunity to raise significant cost savings on having to employ in-house staff.  In addition to the cost benefits, there are also benefits to be drawn from the particular expertise and skills possessed by full-time consultants in a particular area, such as payroll or human resources, which would be simply unobtainable for most SMEs.   
BPO outsourcing outside of the UK has become increasingly popular over the last few years, thanks to advancements in technology which have made instant global communications significantly easier.  However, whilst foreign outsourcing companies can provide an initial cost saving on UK service providers, some concerns have been expressed as to the long term impact of a sometimes lower quality service.

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