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Pros and cons of BPO

WHEN a company outsources its business processes it can lose a certain degree of independence but on the other hand gain better flexibility. The Slovak Spectator spoke with Matúš Jurových, senior consultant with the advisory department at PricewaterhouseCoopers in Slovakia, about the risks and benefits of business process outsourcing (BPO).

WHEN a company outsources its business processes it can lose a certain degree of independence but on the other hand gain better flexibility. The Slovak Spectator spoke with Matúš Jurových, senior consultant with the advisory department at PricewaterhouseCoopers in Slovakia, about the risks and benefits of business process outsourcing (BPO).


The Slovak Spectator (TSS): What kind of risks can BPO pose for those who do undertake business process outsourcing?
Matúš Jurových:
The loss of independence, underestimation of the costs linked to BPO and protection of and access to data can be regarded as the main risks of BPO. Complications in the sphere of data protection are more visible especially for banks or mobile operators who are considering BPO. Companies which have decided on BPO also face problems if the quality of the services provided is not satisfactory or the service-level agreement related to BPO services is not clear enough.

TSS: Apart from a reduction in costs, what other advantages can BPO bring a company?
Matúš Jurových:
Among the significant advantages which BPO can bring to a company is flexibility regarding changes in and around the company. This is possible because BPO services are provided on the basis of payment for work performed. This enables a company to turn fixed costs into variable costs more flexibly and thus to adapt to changes in the market more quickly.

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