Question

Name the outsourcing process in which an organisation assigns its non-core processes to an external agency.

Hint:

BPO is highly effective for scaling a business quickly without the high cost of setting up new departments and hiring full-time staff for every single task.

Answer 1

Step 1: Understanding the Concept:
Modern businesses often focus on their primary expertise (core activities) and hire outside experts to handle secondary tasks (non-core activities) to save time and money.
Step 2: Detailed Explanation:
Non-core processes include administrative tasks like payroll, customer support, data entry, and accounting.
Assigning these specific operational functions to a specialized third-party service provider is a strategic move to increase efficiency.
The standard term for this practice in the global market is Business Process Outsourcing.
Step 3: Final Answer:
The process is Business Process Outsourcing (BPO).