Answer in brief
1) What is outsourcing? Illustrate with suitable examples.
Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry, etc. are outsourced by the company. The company makes a formal agreement with the agency.
Company benefits in two ways.
It reduces its own cost
It uses the expertise of the firm which specializes in a particular kind of service.
Examples of outsourcing:
The establishments such as shops, malls, housing societies, offices, etc. outsource facilities like canteen, sanitation, security, etc. In the same way arrangements for the wedding, anniversary, birthday celebration can also be outsourced.
2) What is BPO? Explain in detail?
Business process outsourcing or BPO is a business practice in which one organization hires another company to perform a task (process) that the hiring organization requires to operate its own business successfully.
BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and increase efficiency.
BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and to increase efficiency. For example, customer care centers for various banks, service providers, etc.
3) What is KPO? Explain in detail.
KPO is described as the functions related to knowledge and information outsourced to third-party service providers.
KPO is the sub-segment of BPO, in which the outsource service provider is hired not only for its capacity to perform a particular business process or function but also to provide expertise around it.
KPO is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company or by a subsidiary of the same organization. Which may be in the same country or in an off share location to save cost.
KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise. KPO allows both core and non-core activities.
4) What is LPO? Explain in detail.
LPO is a type of KPO that is specific to legal services, ranging from drafting legal documents, Performing legal research to offering advice.
LPO refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company. LPO is the industry in which in-house legal departments or organizations outsource legal work to such areas where it can be done at less cost.
For example, areas like the US or Europe outsourced legal work to India, where it can be performed at a significantly decreased cost. LPO is a high-end industry that has been growing rapidly in recent Years.
Legal outsourcing has gained tremendous ground in the past few years in India. It achieved Success by producing services such as document review, legal research, and writing, drafting of briefings, etc.