The Essential Guide to Business Process Outsourcing (BPO)

To perform all the tasks by itself is difficult for companies of any size. To keep the working of the company smooth, companies outsourced their business processes. To get the advantages of outsourcing, companies approach BPO service providers for both front and back-office BPO operations.

According to the statics, year by year BPO industry grow from $12 billion to $90 billion. Unsurprisingly, BPO can transform the regular operations of your company and help you form a stronger organization. This article covers everything about BPO e.g. What is BPO, What type of services BPO service providers support, its future, and how can it help your business?

Points to cover –

1. What do you mean by Business Process Outsourcing?
2. Why do companies outsource their processes to BPO?
3. How to opt for the right BPO for your company?
4. Conclusion

Let’s dive in!

1. What do you mean by Business Process Outsourcing?

Business Process Outsourcing (BPO) is the process where a company gives their non-core work e.g. one or more than one task to a third party to efficiently handle it.

These outsourcing services are divided into two categories name –

Front Office BPO – The task related to direct customer communication comes under this category. Eg. Sales and Customer Care.

Back Office BPO – The category of back-office BPO takes care of the behind-the-scenes jobs like IT Infrastructure, accounting, payment processing, and HR.

BPO Categories

Based on the requirement of service, business size, and price, the plan of BPO service is categorized.

1. Offshore – Business associate for their work to another country.
2. Nearshore – In Nearshore the company contract with the neighboring country.

3. Onshore – In this company contract for any business work within the country.

Commonly Outsourced Processes

• Contact Centers
• Business Process Reengineering
• Digital Mailroom
• Business Continuity Planning
• Document Storage & Retrieval
• Data Capture
• Accounts Payable & Receivable
• Imaging & Document Scanning
• Document Processing

2. Why do companies outsource their processes to BPO?

There are several reasons behind this approach of companies. Usually, companies hire BPO service providers for one or more of mention reasons:

Expand global presence – Through outsourcing, companies can reach global customers because the call center service of BPOs work in various time zones, and reaches out to the customers globally.
Specialization – BPO service providers are specialized in their services because they did it regularly. You have more chances to get efficient and quality services.
Flexibility – You can easily switch from your current vendor to a new one if you are dissatisfied with their services.
Improved Service – Outsourcing can help in both direct customer interaction and back-office BPO.
Enhance speed and efficiency – When you outsource any task to any top BPO company that means they performed that work with their pace and efficiency because they are niche in that.
Resource Allocation – It’s difficult for companies to hire resources for every process and expensive too. BPO removes this issue they allocate resources on your behalf and help you grow your business.
Focus on core competencies – You can focus on your core tasks because BPO service providers help you in non-core tasks.
Decrease costs – On top of all, BPO’s help you decrease your resource cost and help you in revenue growth.

3. How to opt for the right BPO for your company?

Choosing one BPO service provider among the several top BPO companies is a complicated task because every BPO claims to be the best. Here we point out a few qualifications which need to be comprised in an outstanding BPO.

• Analyze the service capacity of BPO partners.
• Check out the IT & infrastructure setup of BPO.
• Check the industry expertise and the global presence
• Assess the HR support and recruitment process
• Ensure its indemnity insurance and financial stability

4. Conclusion

Business Process Outsourcing is a useful process that will be economical and time-effective for your organization. Several top BPO companies in the industry outsource their processes to BPO providers so that they focus on their core activities or business expansion ideas.

So, opt for professional guidance and let them do operations for you.

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