Kreston Dormers is a multi-disciplinary professional service firm committed to delivering valuable taxation, financial, business and legal advisory services to public and private Australian companies, foreign owned subsidiaries, family businesses and individuals.

1. Business Process Outsourcing and its manifold advantages
An introduction to business processing outsourcing
BPO, the abbreviation of business
process outsourcing services, is
an outsourcing subset that consists of
operations, contracting and
dependability of some particular
business operations or processes to
any service provider of third party.
Originally the entire idea was
associated with the several
manufacturing firms who used to
outsource some of the biggest
sections of the supply chain.
Typically BPO can be classified into
four:
1) Back office outsourcing: This includes functioning of internal business like finance and accounting or
human resources.
2) Front office outsourcing: All the customer related services fall into this category like the services of the
contact centers.
3) Offshore outsourcing: When a BPO is contracted that is located outside the country where you reside
the type of outsourcing is offshore outsourcing.
4) Nearshore outsourcing: When the country where the BPO service provider is contracted happens to be
the neighboring country then it is near-shore outsourcing.
The process of business often is based on information technology, which is known as ITES-BPO. ITES
stands as 'Information Technology Enabled Service'. For the BPO industry LPO (Legal Process
Outsourcing) and KPO (Knowledge Process Outsourcing) remains the sub segments.
Benefits of BPO
The significant advantage of BPO is how it is helping in making increase of the flexibility of a company.
On the other hand, different sources consist of several ways using which they can recognize with the
flexibility of some organization. During the year 2000 BPO used to be a subject that was cost efficient and
permitted some flexibility levels during its early period. With the advancement of technology and the
modification of the industry companies who used to pick the option of outsourcing increasingly came
across at the time flexibility and directly control the quality of what they used to outsource. The BPO
makes an enhancement of the organization's flexibility in too many ways:
a) Most of the services that usually got offered by the BPO vendors get provided in terms of fees on the
basis of what they are offering. The entire thing revolves around 'Remote in-Sourcing' or alike to it the
different models of outsourcing and software developments. This certainly helps the company in gaining a
bigger flexibility. And all these take place through transforming the fixed costs into variable costs.
b) The other way where BPO has their biggest contribution is on the flexibility of a company where the
company can ably focus on their competencies without getting anyway burdened or loaded by the

2. bureaucratic demands and restraints. The key team gets released from their work that happens to be
administrative jobs or non-core processes and henceforth can make investment more on building energy
with them.
c) The third way of making an increment to the flexibility is by speeding up the processes of business
outsourcing. The 'supply chain management' consisting of all its effective benefits of BPO and supply
chain partners make an increase in the rate of different business processes like for the case of the
manufacturing companies the throughput gets an increase.
Aaron Dormer, author of this content. If interested about Business Process Outsourcing Sydney for
your accounting needs, kindly visit krestondormers.com.au ,or follow on : google+