Everything You Need to Know About BPO!

Everything You Need to Know About BPO!

Business Process Outsourcing (BPO) is a term that every modern business is familiarized with. BPO services have been operational for quite a time, but, still, many companies are oblivious of its worth in the business world. Let us clear you about the BPO concepts.

What is Business Process Outsourcing (BPO)?

BPO is a practice in which business organizations hire other companies to perform (outsource) a task or operation for effective functioning of their businesses.

For Instance,

Manufacturing companies hire other companies to make products’ parts that are unrelated to the core supply chain of the end-result.

This practice is now widespread and has taken over other industries as well, be it government organizations, private, or non-profitable firms. And, the scope of BPO can be estimated by the given state; as per the BPO Services Global Industry Almanac 2013-2022 released in May, the revenue gathered by BPO services was of $ 144.9 billion in 2017.

In How Many Ways Businesses Can Benefit from BPO services?

Due to the wide scope of professional outsourcing services and the location of the BPO services provider, it can be classified in three following categories:

1. Offshore BPO

This type of BPO refers to the services that are outsourced from an organization, operating in a foreign country.

2. Onshore BPO

It is also known as domestic BPO service. It occurs when an organization contract for services with another company operating in the same country.

3. Nearshore BPO

This outsourcing service is when an organization hires a company from a neighboring country.

Another classification of BPO services is based on the type of services provided to the hiring organizations.

Knowledge Process Outsourcing (KPO)

It refers to the BPO service provider when he is hired, based on his expertise of services or his capacity to perform a particular business task. It is further subdivided into two categories:

1. Legal Process Outsourcing (LPO)

This type of KPO refers to the legal processes of businesses. It can cover a number of services ranging from drafting legal documents, advisory service, and research.

2. Research Process Outsourcing (RPO)

It includes research and analysis functions in organizations like biotech companies, investment firms, marketing agencies, and more.

The role of information technology is evident and intimate with BPO outsourcing, thus, sometimes it is called as ITES – Information Technology Enabled Services. It represents that BPO services can only function effectively via I.T development.

How To Incorporate BPO Services in your Business?

BPO services can be used in a number of ways, providing ultimate benefits to your business enterprise.

Businesses generally, have to engage with BPO services provider for:

Back-Office Operations

These internal business functions include

  • T
  • Accounting
  • Quality assurance (QA)
  • Human resource (HR)
  • Payment processing and more
Front-end Office Operations

On the other hand, it includes functions related to,

  • Administration
  • Customer care services
  • Sales and marketing

Moreover, not only this but businesses can also hire companies for specific functions of an area instead of availing full functional area.

Is BPO Worth Investment?

Indeed, depending upon the type and capacity of work, any organization, small or large can enhance its growth and achieve its goals with efficiency and accuracy with BPO services. Instead of dealing with things that you’re not expert of, may backfire at the final product stage, so why not incorporate BPO services and participate actively in the business progress.

For further information, visit https://www.ipsusa.net/business-process-outsourcing-company/


Key Takeaways:
  • Definition of BPO
  • Types of BPO depending upon the location of service provider
  • Types of BPO depending upon the service provider’s expertise
  • In what areas we can use BPO services


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