ITPEC FE Morning April 2021 Question 62
Which of the following is an explanation of BPO?
Explanation
Outsourcing a whole department's work processes to an external provider — BPO (Business Process Outsourcing) hands over a business process, not just people or IT resources.
In BPO the provider takes over an entire business function, such as general affairs, accounting, payroll or a call centre, together with the operation of the work system behind it. The company keeps the results and focuses its own staff on core business.
Answer (a)
Why not others:
- •(b) — using lower-cost staff from a temporary employment agency is worker dispatch; the company still runs the process itself
- •(c) — renting part of a provider's server processing and storage capacity is a hosting service (in cloud terms, IaaS)
- •(d) — using software functions over a network without owning the software is SaaS
Key rule: Ask what is handed over: a whole business process is BPO, software use is SaaS, server capacity is hosting or IaaS, and people alone is staffing.
System Strategy · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official FE past-paper collection or Report an issue.