Research Project: Business Process Outsourcing Directory in South Africa 1 Introduction and Background 1 2 Definition of Research Questions 2 3 Preliminary Literature Review 2 4 Research Design and Method 4 5 Scope of Period 5 6 Framework of Proposed Research 6 7 Interim Sources List 6 8 7 1 Introduction and Background In the 1990s, companies recognized that enterprises need to concentrate on core business activities because of economic pressure and commercial pressure. Furthermore, due to rapid technological progress, provision of IT services is not affected by business establishments.
Business process outsourcing (BPO) is a subset of outsourcing that provides operation and responsibility of specific business processes to third-party service providers. Initially, this was related to a manufacturing company such as Coca-Cola who was outsourcing the bulk of the supply chain. Business processes are usually based on information technology, called ITES-BPO, which represents information technology support services. Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are part of the sub-market segment of the business process outsourcing industry.
Business process outsourcing (BPO) is a way to outsource various business related operations to third-party vendors. When business process outsourcing begins, it is mainly used in manufacturing entities such as soft drink manufacturers who outsource the bulk of the supply chain. However, it is now suitable for service outsourcing. From small business to large enterprises, many companies are selecting outsourcing processes as they provide new and innovative services in a constantly changing competitive business environment. Two areas where companies use business process outsourcing are back office and front office. People working in the background are usually responsible for internal business functions such as logistics, collection, accounts receivable or purchasing.