ITPEC FE Morning October 2021 Question 63

Outsourcing a whole business process, together with the system that runs it — BPO (Business Process Outsourcing) hands an entire function to an external specialist.

In BPO the vendor takes over a complete business process of a department, such as general administration, payroll or a call centre, including the people, the procedures and the operation of the business system behind it. The company keeps the result, not the work.

Answer (c)

Why not others:

• •(a) — renting part of a provider's server capacity instead of owning a server is a hosting service
• •(b) — using software functions an external vendor provides over a network, instead of owning the software, is ASP or SaaS
• •(d) — bringing in cheaper staff from a staffing company is temporary staffing (worker dispatch); the company still runs the process itself

Key rule: Ask what is handed over: servers is hosting, software is SaaS, workers is staffing, and a whole business process with its operation is BPO.

System Strategy · AI-written, may contain errors