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The concept and difference between ITO, BPO, KPO, and the three

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Posted on 6/14/2020 1:08:41 PM | | |
At present, international service outsourcing is mainly divided into three categories, namely: ITO, BPO. KPO。

ITO(Information Technology Outsourcing): It can include a combination of product support and professional services to provide IT infrastructure, enterprise application services, or both services to ensure customer success in terms of business.

BPOBusiness Process Outsourcing BPO is when an enterprise outsources some repetitive non-core or core business processes to suppliers to reduce costs and improve service quality in the form of long-term contracts.

KPOKnowledge Process Outsourcing. Knowledge process outsourcing (KPO) is a highly intelligent continuation of business process outsourcing (BPO), which is the highest level of BPO, generally speaking, it refers to the contracting of specific business within the company to external specialized service providers. KPO's central mission is to create value for customers with business expertise rather than process expertise.

The differences between the three are as follows:

ITO emphasizes outsourcing in the field of technology, mainly including IT software development, hardware maintenance, and basic technology platform integration.

BPO emphasizes business process management. Focus on solving business process and operational efficiency issues, such as data information collection, integration, analysis and outsourcing services after business process splitting, human resource management services, supply chain management services, etc.

KPO pays more attention to the outsourcing of high-end R&D activities, mainly involving telemedicine services, pharmaceutical research and development, etc.
 Landlord| Posted on 6/14/2020 1:10:29 PM |
ITO

In information technology, ITO is the abbreviation of Information Technology Outsourcing, which means information technology outsourcing, which refers to the service outsourcing provider entrusted by the service outsourcing provider to provide some or all of the information technology service functions to the enterprise, mainly including information technology system, application management and technical support services.

ITO can include a combination of product support and professional services to provide IT infrastructure, enterprise application services, or both to ensure customer success in terms of business success. At a minimum, outsourcing will include certain IT management services, while ITO will be further subdivided into data center, desktop, network, and enterprise application outsourcing.

As early as 1989, the famous management scholar Peter Drucker described in his book that "any work in an enterprise that only does background support and does not generate turnover should be outsourced, and any activities and businesses that do not provide advanced development opportunities should also be outsourced." This more efficient and cost-effective business model innovation includes ITO - Information Technology Outsourcing and BPO (Business Process Outsourcing) - Business Process Outsourcing, ITO focuses on enterprise IT infrastructure such as servers, networks, operating systems and support, etc., while BPO focuses on the internal operations of the enterprise or the back-end activities of customers. BPO requires higher management and service levels for outsourcing enterprises and generates greater profits.


BPO

Business Pro-cess outsourcing (BPO) refers to the entrustment of some or all of the non-core processes in one's own business process to another party.

By transferring some or all of the customer's management and operational processes to the service provider, the company's limited resources are freed from non-core business and concentrated on core business, thereby improving the ability to automate customer processes.

Because the process of conducting BPO is repetitive and takes the form of a long-term contract, BPO goes far beyond consulting. If BPO is successful, it can add value to the company. The difference between BPO and traditional IT outsourcing (ITO) is that BPO helps companies complete outsourcing faster.

In a typical BPO contract, the outsourced service provider will assume a specific function of the company. An effective BPO is not just about outsourcing the process, the outsourcing provider will also restructure the process. Process restructuring involves implementing a new technology or using technology in a new way to improve processes. It is difficult to achieve this level. Choosing the right middleware, like Rules Engine, makes it easy!

 Landlord| Posted on 6/14/2020 1:11:05 PM |
ITO: Abbreviation of Information Technology Outsourcing, which means information technology outsourcing, refers to the service outsourcing contractor entrusting the service outsourcing provider to provide some or all of the information technology service functions to the enterprise, mainly including information technology system, application management and technical support services. ITO can include a combination of product support and professional services to provide IT infrastructure, enterprise application services, or both to ensure customer success in terms of business success. At a minimum, outsourcing will include certain IT management services, while ITO will be further subdivided into data center, desktop, network, and enterprise application outsourcing.

BPO: Business Process Outsourcing is when a company outsources some repetitive non-core or core business processes to suppliers to reduce costs and improve service quality. It is to entrust one or more business processes with high information technology requirements to an external service provider, and the BPO process is owned, dominated and managed by the external service provider according to the mutually defined and measurable performance appraisal indicators.

KPO: If over a period of time, you commit to entrust knowledge-intensive businesses or processes that require advanced research and analysis, technical and decision-making skills to a third party, then this is commonly referred to as "knowledge process outsourcing" or "KPO" for short. Knowledge process outsourcing (KPO) is a highly intelligent continuation of business process outsourcing (BPO), which is the highest level of BPO, generally speaking, it refers to the specific business contracting within the company
Posted on 12/21/2023 5:06:13 PM |
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Posted on 12/21/2023 5:06:44 PM |
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