What is BPO (Business Process Outsourcing)?


Business process outsourcing or BPO is a widespread practice in the modern business industry. Due to it, any company can hire another organization or team to handle different tasks or processes. Such practice ensures successful business running and solution of various specific problems.


The BPO origins can be found in the history of the manufacturing industry. A few decades ago some companies were hiring other ones to perform specific tasks necessary to get the end product. Such outsourced processes required professional attitude and specific competency. As the years went by BPO was adopted in other industries and soon it became an integral part of the business.


Usually, companies need outsourcing to cope with 2 types of work: front-office and back-office. In the first case, an organization hires an agency to handle such business processes as marketing assistance, sales assistance or customer relations services. The outsourcing of back-office functions includes the solution of problems related to HR, payment processing, quality assurance, accounting, etc. There are no doubts that all these processes are important for a successful business and it’s important to find reliable experts ready to manage them. 


Besides, it’s necessary to take into account that there are 2 main BPO types:


Main BPO Benefits

It's no-brainer that BPO is so popular because it has a lot of benefits. Right now you can get acquainted with the most important ones.

Lower Costs

Probably, the financial benefit is the biggest BPO advantage. It’s possible to find an outsourcing agency ready to handle your business tasks at low costs. For example, if any large company outsources some of its IT services to the organization in another country, it may save near 30% of expenses. In addition, don’t forget about tax savings.


Improved Customer Service & Focus on Core Tasks

Due to outsourcing services, your business process may be more flexible. You’ll get more opportunities to focus on your brand building, researches, and development because all routine work will be performed by another company. What is more, a reliable outsourcing agency can provide your customers with faster and better services, so you’ll be able to achieve your main business goals and get complete clients’ satisfaction simultaneously.


Skilled Experts and Advanced Technologies

When you decide to outsource some of your business tasks, you can be sure that they’ll be handled by skilled experts. Usually, outsourcing agencies have dedicated professional teams ready to start working just right after you’ve explained your problem. Also, except for the necessary skills, these experts use advanced software and technologies to provide your company with the best performance and the highest results.


Main BPO Risks

At the same time, some experts are skeptical of the BPO benefits and say that there are a lot of risks. However, you always can take steps to overcome these disadvantages.


Communication Problems

There are different reasons why there may be a communication gap between the outsourcing agency and its partners. You should be ready that you may face with misunderstandings and it may take time before this or that error will be reclaimed. Plus, if your work with the oversea outsourcing company, you should consider the difference between time zones. In this case, you should be ready to solve problems in communication and holding online meetings with your abroad partners.


Dependence on Another Company

When you choose outsourcing services, you need to realize that you’ll lose control of how some of your business processes are handled. Also, your company will depend on the performance provided by the BPO agency. And since there are communication problems, possible errors and time differences, there is a chance that your business process may suffer.


Security Risks

The risk to expose important data and confidential information of your company is one of the biggest disadvantages of the BPO services. You should understand that the team members you’ve hired may not respect your company policy and its intellectual property. That’s why when you want to outsource the services related to personal data, you place the privacy of your clients and the security of your company at risk.


Although there are such problems, take into account that you can avoid them if you choose a reliable outsourcing agency. That’s why it’s important to check the reputation of the BPO company before employing its services. Besides, don’t forget to provide an outsourcing agency with detailed information about all your problems and needs, and discuss all possible challenges beforehand if you want to get the desired result.


As you can see, you should always take into consideration all the pros and cons before outsourcing your business processes. Try to choose BPO agencies with a high reputation and positive clients’ reviews. Also, if you are not sure whether you need such services, you can try to outsource just one of your tasks. There are no doubts, that you’ll be pleased with the result.

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