What Do You Understand About the Term Business Process Outsourcing?

Business Process Outsourcing (BPO) hires companies for various projects for their business requirements. The company that outsources the project becomes its client to whom they allot it.

The company that gets the project hires the candidates on the client’s behalf to meet the client’s requirements for various business process outsourcing types that handle customer service management and generate revenue. As the business needs vary according to trends, they can opt for either a sales support outsourcing partner or customer support providers to provide a seamless experience in customers’ journeys.

For example, many US, UK, and Australian-based companies outsource their projects to Fortune, Large scale, medium, and small companies in India and China owing to low labor costs and high returns.

What are the Different Types of Business Process Outsourcing?

Business Process Outsourcing covers two types of categories with various subcategories. One is the voice process, called a call center, where the company hires telecallers to initiate calls to new, existing, and follow-up calls to qualified leads for closing the deal to give customers 24*7 service.  A non-voice process comprises of data-entry, email support, accounts, etc.; Following are the different types of business process outsourcing. 

  • Offshore outsourcing – Refers to business operations that hire third-party to perform tasks from outside the country. These companies render services from low-cost regions across the globe to meet their requirements. For example, the agencies of Western countries like the USA, UK, Australia, Germany, etc., outsource their business functions to India.
Offshore Outsourcing
Find your leads today! (Source : Google)
  • Onshore outsourcing – Refers to the business enterprises outsourcing their non-core functions to the company in the same country. However, you find these providers in different states or districts. For example, a company in California outsources its project to a Texas-based BPO company. The organizations that finalize the process with a company do not worry about the time differences, and people get access to their service providers without traveling for a long time.
Onshore Outsourcing
Hiring onshore outsource can lessen your burden (Source : Freepik)
  • Nearshore outsourcing – Refers to BPO companies in neighboring or adjacent countries for outsourcing their work. Owing to geographical proximity, the organization and providers can give frequent visits. For example, a company in South America can choose any company from Mexico and other neighboring countries to outsource their work. There are many benefits of hiring an outsourcing company. 
Nearshore Outsourcing
Elevate your business with right outsourcing (Source ; Linkedln)
  • Domestic Business Process Outsourcing –Refers to the outsourcing service provider where the company operates in the same country, state, or city. The domestic BPO companies meet the specifications of the client’s domestic customers. Today, you will find domestic BPOs in all countries. For example, a multinational company in India and other countries would outsource their work to a small or medium-scale company to get their job done with the fulfillment of their guidelines.
  • Knowledge Process Outsourcing – It is a kind of business process outsourcing where BPO employees focus on the knowledge-based services of an organization and costing is relatively low! Education, healthcare, insurance, finances, mortgage, etc., are examples of KPO. The service providers for Knowledge Process Outsourcing require knowledge, expertise, leadership, time management, good communication skills, etc. Accounting and financial analysis, legal processes, and IT-related services like web designing, content creation, legal procedures, etc., are examples of knowledge process outsourcing.
  • Legal Process Outsourcing – Refers to Knowledge process outsourcing that deals with complex legal tasks. Applications of patents, creating legal agreements with specific clauses, conducting thorough legal research, etc., are examples of legal process outsourcing. You can also include other examples like appointments, transcription services, documentation, research, and the circumstance under the category of LPO.
  • Research Process Outsourcing – The service providers focusing on an organization’s research and development duties are known as Research Process Outsourcing (RPO).  Primary and secondary market research, analysis, financial reporting, data analysis, investment research, etc., are examples of RPO.
  • Back Office Outsourcing – Refers to the internal activities within an organization. The back office comprises accounting, payroll, inventory, data entry, billing, purchasin, including live chat outsourcing. These are also the day-to-day operations of a company regardless of whether the company gets the outsourcing work from the clients. For example, banks are into back-office outsourcing and don’t depend on any third-party organization for projects. Administrative tasks like content writing, professional ghostwriting services, digital marketing, e-commerce, IT services, human resource, accounting, and payroll are examples of Back Office Outsourcing. 
  • Front Office Outsourcing – Refers to the company’s external activities, such as telemarketing and customer service. The front office services depend on the customers, where the employees make a cold call and deal with existing and potential clients. BPO call center is an example of front office activities that expect impactful communication skills from front office employees, that include listening skills. ITES, Sales, and Marketing are the other examples of front-office outsourcing.
  • Information Technology Enabled Services (ITES) – Refers to outsourcing business processes that deal with non-primary business operations and activities to a third-party provider.  The Information Technology Enabled Services (ITES) handles all IT solutions online or over the Internet. Technical Support, Service Desk Analyst, Production Support Analyst, etc., are examples of Information Technology Enabled Services.

Common BPO Services – The standard services that you can find in a BPO are:

  • Data Entry – Though data entry is one of the most manageable administrative tasks, you will find it tedious and time-consuming, which could be a catch. The other aspect is that a person sitting before the computer system must constantly focus on the screen, which may lead to mistakes like repetition or omitting the data.  Entering the customer’s data into the computer’s data under various categories is an example of data entry.
  • Customer Support – Refers to one of the most popular activities in BPO, where the customer support executives face the challenge of completing many calls within the AHT. The inbound call center is an example of customer support.
  • Marketing –Search Engine Optimization and telemarketing are examples of marketing that require in-depth market research for designing strategies for approaching the customers or the leads. You can select one of the more third-party vendors among millions to assist you in creating effective marketing materials and landing pages, which helps you to convert the leads into deals by analyzing the better landscape and formulating a winning strategy for your brand. 
  • Human Resources – With the advancement of business process outsourcing, many other processes have entered the BPO industry. Human resource outsourcing, including payroll processing, employee benefits administration, compliance with employment laws, etc., are the live examples. Outsourcing HR departments is one of the most popular in the BPO sector, wherein the industry must generate a revenue of $43.8 billion by 2024. For example, companies recruit candidates for the posts they apply for on behalf of the clients to accomplish their financial goals.
  • Finance and Accounts – One of the popular business process outsourcing services handles accounts and other services that add value to your business by assisting the company in setting up a budget, conducting an audit, and making a financial forecast, which gives financial insights to business enterprises. Preparing a trading and profit and loss account, balance sheet, filing ITR, filing GST Returns, Company Audits, Bank Audits, maintaining the records of loans, and recovery of loans are examples of finance and accounts.

Final Words

Business Process Outsourcing does not restrict only to data entry or telecalling and other routines. Today, you will find companies that outsource many tasks to third-party companies and AM2PM Support can work for you!

  • Shweta Maheshwari

    Shweta Maheshwari is an SEO Content Marketer with a passion for turning words into useful content for brands.