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BPO allows organizations to delegate specific business functions to third-party service providers. It can be:
Front-office BPO (customer service, marketing)
Back-office BPO (accounting, HR, IT services)
Key advantages:
Cost savings from labor arbitrage
Access to skilled resources and technology
Focus on strategic initiatives and core operations
Scalability and flexibility for growth
BPO partnerships require strong SLAs (Service Level Agreements), communication protocols, and performance metrics to ensure alignment with business goals.
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