Outsourcing business processes (BPO) refers to contracting specific business activities, such as payroll, customer support, accounting, or IT services, to external service providers. This helps companies reduce costs, focus on core activities, and improve efficiency by using specialized expertise. It also allows businesses to scale operations easily and access global talent.
Shared Service Centers (SSCs), on the other hand, are internal units within an organization that centralize common support functions like HR, finance, and procurement. Instead of outsourcing, companies handle these services in-house but in a more organized and standardized way.
Both BPO and SSC models aim to improve productivity, reduce operational costs, and ensure better quality and consistency in business processes.
