Classification and content of service outsourcing in service outsourcing industry

Service outsourcing is divided into information technology outsourcing service (ITO) and business process outsourcing service (BPO), both of which are based on IT technology. ITO emphasizes technology, which involves more costs and services, while BPO emphasizes business process, which solves the problems of business effect and operational benefit. BPO often involves several business principles and often contacts customers, so its significance and influence are more significant. The classification and content of service outsourcing are shown in the following table.

Not only does the IT industry need BPO, but every business of BPO is inseparable from the support of IT business, which leads to the opportunity of IT outsourcing. BPO is more like a business cooperation relationship and pays more attention to the effect of business.

information technology outsourcing (ITO)

System operation service: processing and integrating bank data, credit card data, various insurance data, insurance claim data, medical/physical examination data, tax data and legal data (including information).

System application services: information engineering and process design, management information system services, remote maintenance, etc.

Basic technical services: undertaking technical research and development, software development and design, basic technology or basic management platform integration or management integration, etc.

Business process outsourcing service (BPO)

Internal management services of enterprises: provide various internal management services for customer enterprises, including logistics services, human resources services, wages and benefits services, accounting services, financial centers, data centers and other internal management services.

Business operation services of enterprises: provide technical research and development services, sales and wholesale services, after-sales services (after-sales telephone guidance and maintenance services) and other business process services for customer enterprises.

Supply chain management services: provide customers with procurement, transportation, warehouse/inventory overall scheme services, etc.

According to the geographical distribution of service outsourcing contractors, service outsourcing can be divided into three types: offshore outsourcing, offshore outsourcing and domestic outsourcing. Offshore outsourcing means that the transferor and the service provider come from different countries and the outsourcing work is completed across borders; Offshore outsourcing means that the transferor and contractor come from neighboring countries, and coastal countries are likely to have the same language and similar culture, which usually provides a certain degree of cost advantage; Domestic outsourcing means that the transferor and the service provider come from the same country and the outsourcing work is completed in China.