Advantages and disadvantages of BPO (Business Process Outsourcing)

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Organizations are involved in outsourcing business processes as they hope to benefit from these arrangements. The BPO categories are front-office customer service (such as technical support) and back-office business functions (such as billing). Here are the advantages and disadvantages of BPO (Business Process Outsourcing):

1. Advantages of BPO (Business Process Outsourcing)

The benefits of BPO (Business Process Outsourcing) are as follows:

  • Improved speed and efficiency of business processes.
  • Employees can invest more time in core business strategies to increase competitive advantage and increase value chain engagement.
  • Organizational growth is accelerating when capital resources and asset expenditures are not needed, which prevents a return on investment.
  • Organizations are not required to invest in unrelated key business strategy assets, facilitating a change in focus on specific competencies.

2. Disadvantages of BPO (Business Process Outsourcing)

Disadvantages or Risks of BPO (Business Process Outsourcing) include:

  • Data privacy violation
  • Underestimated operational costs
  • Excessive dependence on service providers

For more information about BPO Company in Malaysia, please visit

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