What are horizontal and vertical in outsourcing?

What are horizontal and vertical in outsourcing?

These contract services can further be subdivided into two categories: Vertical outsourcing, where the services provided are focused towards a specific product line; and horizontal outsourcing, where the tasks that are needed are distributed across many different product lines.

What are the objectives of BPO?

Objectives of Business Process Outsourcing

  • Process improvement and efficiency – faster turnaround and greater productivity.
  • Cost savings.
  • Reduced head count.
  • Improved quality – less errors/rework.
  • Building/strengthening presence in a new market/foreign country.

What are the subsets of BPO?

BPO has spawned subsets: Knowledge Process Outsourcing (KPO), Creative Process Outsourcing (CPO), Legal Process Outsourcing (LPO), Information Technology Outsourcing (ITO), Robotic Process Outsourcing (RPO), Human Resource Outsourcing (HRO).

What are the main departments of a BPO?

Business process outsourcing (BPO) is the practice of contracting a specific work process or processes to an external service provider. The services can include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more.

What is the difference between horizontal and vertical BPO?

Horizontal BPO: Horizontal BPO involves function centric outsourcing. The vendor specializes in carrying out particular functions across different industry domains. Vertical BPO: A vertical BPO focuses on proving various functional services in a limited number of industry domains.

What is SLA in BPO?

And SLA stands for Service Level Agreement. In definition, BPO is a business practice where an organization contracts another company to perform business functions on their behalf necessary for them to succeed. The metrics used to measure performance is called the KPIs.

Why BPO job is not good?

Health Issues: Digestive problems, Sleep disorders, eyesight problems and depression are issues which are associated with BPO jobs. Smoking /Alcohol Consumption: Most people working in BPOs are in 20’s or early 30’s. So it is very obvious that they often use to smoke as they have to work in night.

Which is an example of a vertical BPO?

Our Business Process Outsourcing Solutions: https://getsix.eu/our-solutions/scope-of-services/business-process-outsourcing/ are examples of horizontal BPO. Vertical BPO concentrates on functional services in specific industry domains such as manufacturing, retail, financial services and healthcare.

What are the different types of BPO services?

The Types of BPO Services. BPO services are generally categorised into horizontal and vertical services. These have been explained below: 1. Horizontal BPO: Horizontal BPO involves function centric outsourcing. The vendor specialises in carrying out particular functions across different industry domains.

What is meaning of term vericals and horizontals in an IT company?

A Vertical focuses on Industry specific services (say Domain specific) such as Life Sciences, Banking, Healthcare etc. A Horizontal focuses on services which are used in various Industries/Domains as Testing, Data Warehousing, Analytics.

What are vertical and horizontal areas of outsourcing?

If you look at what a business wants to achieve by outsourcing, digitization of paper documents, you come in vertical areas (one industry domain) such as insurance claims processing or in horizontal situations (occurring across various industries) such as Accounts Payable (Processing).

Back To Top