Business process outsourcing (BPO)
Business process outsourcing (BPO) involves the contracting of non-primary business activities and functions to a third-party service provider. Typical BPO services include internal business functions such as the handling of payroll, human resources, and accounting; and customer-related services such as customer interfacing.
BPO can be referred to by different terms related to the specific nature of the outsourcing. Common terms include: information technology enabled services (ITES) for IT-based processes, knowledge process outsourcing (KPO), legal process outsourcing (LPO), engineering process outsourcing (EPO).
In the construction industry, companies can use BPO for various activities, including:
- IT services.
- CAD and BIM.
- Human resources and administration.
- Finance and accounting.
- Security.
- Facilities management.
- Project management.
- Structural design.
- Document management.
- Marketing and communications.
- Concept design.
- Detail engineering.
- Energy modelling and audits.
- Landscape design.
The primary advantage of BPO is the added flexibility that it offers a company. Since most BPO providers offer services on fee-for-service bases, a company can transform fixed into variable costs. By doing so, a company can be more flexible in responding to changes due to required capacity and workload, and therefore don’t need to invest in particular assets. By being relieved of certain activities, a company is able to focus on its core competencies, forward planning, and enhance value chain engagement.
However, there are some risks attached to BPO which can include an over-dependence on service providers, underestimated running costs, and the danger of data privacy breaches.
[edit] Related articles on Designing Buildings
- BS EN 15221.
- Business administration.
- Business model.
- Complex outsourcing.
- Construction organisation design.
- Construction organisations and strategy.
- Corporate finance.
- Critical service contracts.
- Critical suppliers.
- Funding options.
- Hard facilities management.
- Human resource management in construction.
- Insourcing.
- Joint venture.
- Outsourcing playbook.
- Partnering.
- Public sector dependent suppliers.
- Site administrator.
- Soft facilities management.
- Sourcing playbook.
- Subcontractor.
- TUPE considerations and bidding.
- Types of construction organisation.
- Vendor Managed Inventory VMI.
- Vested outsourcing.
- Working with landscape maintenance contractors.
Featured articles and news
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Comments
I find this article to be quite detailed and well-structured. It does tell in great detail how the real estate/ construction industry can benefit from outsourcing. Very insightful and useful for modern businesses to capitalise on.