Business Process Outsourcing (BPO) is a subset of outsourcing that involves the contracting of non-primary business operations and responsibilities to a third-party provider. KPO or Knowledge Process Outsourcing is also a sub-segment of the Business Process Outsourcing industry.
It is common to see BPO services divided into front and back office needs.
If you want to outsource your front office functions, you can expect to see services such as technical support, email, phone conversations, multilingual support and most other forms of communication with customers to be covered.
If you are looking to outsource your back office functions, you can expect services such as quality assurance, data capture, data management, analytical support, payment processing, and IT solutions as service options.
ONSHORE, NEARSHORE, OFFSHORE
You can expect BPO companies to offer you a variety of services located around the world.
Onshore Outsourcing or ‘domestic outsourcing’ is exactly as the name suggests. You would be obtaining the services of someone outside your company but still located in the same country.
Nearshore Outsourcing is performed by people in nearby countries versus your own.
Offshore Outsourcing might be a more common term for you. This is the practice of outsourcing your work in a developed country to a country that is still politically stable but perhaps offers lower labor costs or tax savings.
THE BENEFITS OF BPO
Business Process Outsourcing (BPO) can provide many benefits to your company.
Cost Reduction and Containment: If you are searching for BPO services, it is likely that you have a demand for work that you may be unable to fulfill. Knowing that you want to build your business but maintain financial integrity; outsourcing can be a solution to help you bring on additional resources for a lower cost without compromising quality.
Flexibility: It can be tough to predict the ebbs and flows of your business. There are so many outlying factors that come into play. By outsourcing your front or back-office functions, you can have the flexibility to choose the amount of work you’d like. Whether that be an uptick in business that calls for more outsourced help or a downtick that requires you to reduce the amount of outsourced labor. All this can be done without the worry of laying off your internal resource.
Improved Productivity: BPO companies are professionals and pride themselves on their expertise. After all, their service and their knowledge is the product they are selling. Because of this, they take the time to research and train in the back office functions that will give you exactly what you need. In doing so, these experts can jump in full speed ahead and offer you improved productivity in a certain area of your business that otherwise would take your team longer.
Technology and Process: As mentioned above, BPO companies pride themselves on hiring the most competent of resources. This practice extends beyond people, it also means you gain access to the latest and greatest technology and the processes that accompany them.
WHAT ARE YOU WAITING FOR?
Chances are that after reading this article, you have become aware of the advantages of Business Process Outsourcing (BPO). We at DDC have been helping businesses like yours with their back office needs for over 30 years. We take pride in what we do and how we can help you!
>> For more information on how we can help with your back office needs, click here.
>> To start a conversation to see how we can best serve your outsourcing needs, click here.