OUTSOURCINGOutsourcing involves the transfer of the management and/or

day-to day execution of an entire business function to an external service provider .The client organization and the supplier enter into a contractual agreement that defines the transferred services.

under the agreement the supplier acquires the means of production in the form of transfer of a people , assets and other resources from the client .the client agrees to procure the services from the supplier for the term of the contact.

TYPES OF OUTSOURCINGOutsourcing can be divided into two broad categories. They are BPO

and KPO. Let us examine how each differs.

BPOIn BPO (Business Process Outsourcing), a particular process task is

outsourced. An example would be payroll. BPO work could be either back office related or front office work. By front office functions we mean customer oriented work like marketing,

answering calls, technical support and so on, whereas internal work like billing and purchase come in the back office category.

Multimedia/ animation, book keeping, business consultancy, CAD/ CAM, call center, DTP, data entry, proof reading and editing,

typesetting, handwriting services, marketing, medical billing and transcription, web design and development etc are all services that

could be put under the BPO category

CLASSIFYING OUTSOURCING BY BUSINESS PROCESS

• There are three categories of business process outsourced are:

• 1)information technology outsourcing:

• 2)voice outsourcing:

• 3)non-voice outsourcing:

KPO As is evident from the description, BPO activities involve carrying out standardized processes for the client. KPO or Knowledge Process Outsourcing typically calls for work that needs higher levels of involvement from the worker. The worker has to employ advanced levels of research, analytical and technical skills and has to make decisions of a higher order than BPO work. Examples are pharmaceutical research and development, patent/ intellectual property research, animation and simulation. Data research and analysis, legal services, content writing and development and database development services. KPO industry is less older and mature than the BPO sector.