What is Business Process Outsourcing (BPO)?

What is Business Process Outsourcing (BPO)?


Do you know what a Business Process Outsourcing (BPO) company is or does? Basically, the BPO company acts as an extension of the client’s company. It is the practice of hiring another company to perform a function that your own business needs to operate. In other words, you’re using a third-party to handle non-core business activities for your company.

BPO companies usually consist of specialised teams who are able to troubleshoot specific issues quickly as well as reliably attend to their needs. Several companies of all sizes opt to outsource non-core functions to the BPO company so that the client company can focus on their core functions.


Outsourcing Categories: Front Office Functions vs Back Office Functions


When companies refer to business process outsourcing, they often sort the type of non-core function that they’re outsourcing into two categories: front office outsourcing and back-office outsourcing.

Front-office functions refer to outsourcing tasks that include customer services, marketing and sales.

Front office functions refer to outsourcing tasks that include customer services, such as marketing or tech support.


How can a BPO company add value to my business?


Today’s climate demands that to be successful, companies need to be able to adapt to market trends, problem solve efficiently as well as conduct your daily business operations by meeting the consumer demands. The ability to identify problems and find innovative solutions is key to business success.

Implementing a BPO model in your business for select functions is one of the most popular and effective methods of streamlining a business. Companies choose to outsource when they find that a certain task would be better suited to a more specialised company, externally.


Benefits of BPO


  • Saves Time: When you outsource repetitive tasks, the hours typically spent on these activities will now be freed up for other things.
  • Improve vendor relations: Your vendors will receive faster turn-around time.
  • More efficiency: Since a BPO company specialises in streamlining core business processes, they can handle them more efficiently than most in-house departments.
  • Reduced costs: Outsourcing a business function means you no longer need to pay in house staff for these business processing tasks. In addition, the outsourcing company is responsible for any maintenance and upkeep expenses that go along with these business processes.
  • Increased security: Outsourcing companies specialised to handle financial processes will often have the necessary systems and infrastructure to provide up-to-date security from cyber theft.
  • Better coverage: BPO companies train multiple employees for the same task. This means that you do not have to worry about falling behind if your usual account manager is absent or falls ill.
  • Compete with larger companies: A BPO can allow small and medium-sized companies to operate as if they were larger, without the overhead of employee costs.



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AUTHOR: Fowzia Khan
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