ITO (Information technology outsourcing) and BPO(Business process outsourcing) are two wings supporting businesses. The primary purpose of these bodies is to improve overall efficiency. Their roles might overlap with each other, but they are different. Hiring one does not dissolve the utility of the other. ITO lowers costs on the network & information technology-related systems while BPO manages the operational efficiency in multiple business sections.
What is ITO?
ITO or Information technology outsourcing represents a process when some company transfer information technology processes or functions to a service provider. ITO example is infrastructure outsourcing such as network system, hosting outsourcing, data backup, management outsourcing, or security management outsourcing.
Today in the modern world, companies use service providers and do not think about hosting, reducing operational costs, reducing infrastructure costs, and concrete only in core functions of their organization.
The best example that most IT companies do is paying for a dedicated server or shared hosting. In that case, companies hire a hosting company instead to buy servers and manage all processes alone.
What is the primary role of ITO?
ITO (Information technology outsourcing) primary role is to minimize the expenditure on information technology and network services. Unless there is a massive profit in this department, the part of ITO is insignificant.
What is the primary role of BPO?
BPO’s (Business process outsourcing) primary function is to minimize the expenses of various departments. The purpose is to lower the operational cost and maximize growth with a minor investment. BPO looks after operations and core business functioning.
ITO vs. BPO
The Difference Between ITO and BPO
The Difference Between ITO and BPO is that the ITO service providers analyze which type of technologies, storage, wireless, and support services are suitable. They fix essentials in minimum investment for maximum efficiency based on their expertise and knowledge. BPO, on the other hand, manages operational tasks like personnel management, customer service, and billing and accounting.
Both ITO and BPO are essential for an organization. But, introducing an ITO first is far more beneficial than adding both at once. Overlap may lead to the crossing of opinions and hassle. Introducing ITO will help gain savings in the networking and IT department; it’s easy to incorporate BPO to look after overall functioning once that is covered.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Nimblefreelancer.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
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