What is BPO?

BPO means Business Process Outsourcing.

How might it apply to my business?

Business process outsourcing can be applied to most sizes of companies. In fact, many outsource some key services without actually realising. Other examples of this is where a small company may retain the services of an accountant or book-keeper in order to keep financial records, VAT returns and payroll, simply because it is more cost effective to do so than to do it ‘in house’. Furthermore, it is useful to trust in the expertise of others rather than having to worry about the time and complexity of the finances.

Why might business process outsourcing benefit my organisation?

There are many benefits and reasons but the key ones are that for example, a small company that cannot justify having a human resources professional can outsource to a specialist contractor to give advice and guidance as and when required. This means that the company has the expertise of a professional but not the overhead of a full-time resource. Overall, BPO can lead to reduced costs and access to expertise that perhaps your company would have difficulty in finding.

What legal issue do I I need to consider?

There are a number of key business issues that need be remembered when outsourcing, especially when it comes to personnel and their contracts of employment and their legal rights. This encompassed by a piece of legislation entitled Transfer of Undertakings (Protection of Employment) Regulations 2006 or TUPE as it commonly known.