Service Outsourcing(SO) is one kind of change in management and innovation strategically to reduce the risk. Add the flexibility and improve thecorporation¡¯s benefit .Meanwhile, supply and demand became a new cooperant fellow ship strategically ,and a managementof chain on service and supply.

Business process outsourcing (Business Process Outsourcing), refers to check business processes and the corresponding functions, these processes or functions outsourced to suppliers, vendors and the reorganization of these processes. BPO is all of the features of functional departments (such as transaction processing, policy services, claims management, human resources, finance) are transferred to the suppliers. Outsourcing provider under the service agreement in its own systems in the management of these functions. Some BPO services contract is based on the level of pay, will be the supplier's revenue and operational performance or cost savings to the extent practice.

BPO has many distinctive features, will help to speed up the development of enterprises, may

become the "new millennium, the new model of development companies."

First, BPO can effectively improve operational support to the core business support, an increase in the overall profit. Business can be divided into core business and auxiliary operations, BPO operation's main target is to the overall business play a supportive role in supporting business, such as finance, systems. These auxiliary operations overseas contracted to the professional company and the quality of its operations can be significant and rapid improvement in the core business to play a catalytic role in increasing overall profitability.

Second, the BPO will further highlight the focus on the core business management, business support at the same time on the effective control. Will be part of supporting outsourcing, the company's management to contribute more time and energy, more resources to be allocated to the core business. In the auxiliary operations management for business Chenglanfang external specialized company projects its contract service levels, cost structure, quality testing, and there is a clear commitment to standards, so that the company can perform under the contract situation into the auxiliary the cost of business - quality control, to achieve the desired objectives.

Third, BPO in improving the quality of the outsourcing business, this business area will be changed into a creative field. In-house, supporting business often regarded as a "day-to-day work," is a "recurrent costs." When the external specialized company employees took over these operations, the nature of these operations is no longer a "day-to-day work" but "new employment opportunities." They can with a passionate attitude, creative and to accomplish these tasks. In addition, external specialized company is often carried out by business leader in the field of technology, their business contract imposed by the optimized design, scientific operations and management, and tracking the latest technology development, and constantly update the system.

Fourth, BPO to in the new market environment in breaking the traditional industry (business) line, and the outside companies formed a joint inter-operational areas, a long-term strategic partnership, enhance each other's competitiveness.

Fifth, BPO to control and reduce production costs. As a result of the cost of the auxiliary operations - quality control, and updates on the business optimized design, the use of advanced technology, it can effectively control costs.
     
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