Question

An HR business process outcome (BPO) is an arrangement:

A. Where payroll and benefit administration are entirely outsourced
B. Where employees are leased to an outsourcing company
C. Where employees are staffed by external recruitment agencies
D. Where benefits are outsourced only to an external provider

Answer 1

An HR business process outcome (BPO) is an arrangement where payroll and benefit administration are entirely outsourced.

Step-by-step explanation:

An HR business process outcome (BPO) is an arrangement where payroll and benefit administration are entirely outsourced. In this arrangement, a company hires an external provider to handle its payroll and benefits for its employees. This allows the company to focus on its core business activities while relying on experts to manage these processes. Outcome (BPO) usually refers to the complete outsourcing of payroll and benefits administration to a specialized provider to reduce costs and leverage their expertise. Countries like India and the Philippines are favored for BPO due to skilled labor, cost-effectiveness, and language proficiency.

An HR business process outcome (BPO) is an arrangement where various human resources functions, such as payroll, benefits administration, and recruitment processes, are outsourced to a third-party provider. The aim is to cut costs and improve efficiency by capitalizing on the expertise and technological infrastructure of specialized HR service providers. Historically, outsourcing and offshoring became prevalent solutions for companies looking to reduce operation costs in the face of globalization and the need to remain competitive. Countries like India and the Philippines have become major destinations for BPO activities due to their large pools of skilled labor, low employment costs, and strong English language capabilities.

Therefore, addressing the selections given, the most accurate definition of a BPO is option A: Where payroll and benefit administration are entirely outsourced. This outsourcing can encompass a wide range of services and is not limited to only benefits or only staff being externally recruited. Significant economic benefits are realized through BPO, such as lower wages in the outsourcing destination compared to the source country, enabling businesses to optimize their expenses and focus on core competencies.