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What Are Business Process Outsourcing Services?

Peak Outsourcing
January 14, 2023
What Are Business Process Outsourcing Services?

Business process outsourcing (BPO) occurs when a company outsources business functions to an external third party. Instead of outsourcing a particular task, such as hiring freelancers to write content for a marketing agency, BPO involves outsourcing the entire department to another company.

BPO can include any front- or back-office function. Typically, front office functions involve customer-What are business process outsourcing servicesfacing responsibilities, such as sales or customer service. Back-office functions involve human resources and other aspects of a company that isn’t customer-facing.

Common Types of BPO Services

Three types of BPO are available:

  • Offshore – Offshore BPO involves hiring a company overseas to manage a business function. For example, a U.S.-based business might outsource a customer service department to a company in the Philippines.
  • Nearshore – Nearshore BPO means hiring a company in a nearby country to handle a particular function, such as a Canadian company hiring a company in the U.S. to manage its content marketing.
  • Domestic or onshore – Domestic BPO involves hiring a company in the same country to take over a business function.

Specifically, BPO for your company can include multiple departments and teams, such as:

How BPO Works

The BPO process starts with a company deciding it can benefit from outsourcing a business function, such as marketing or customer service, to an external company. Next, the company that wants to outsource researches other companies with experience handling the desired function. Typically, the search involves contacting multiple companies before determining which is most suitable.

After identifying potential candidates, conversations begin. Many BPO companies determine their client’s needs and tailor their services accordingly. Subsequently, a contract is drafted outlining the terms of the agreement the potential client can review.

In choosing the right BPO company, it requires determining which one offers the best value. Sometimes, backup BPO companies are considered in case the primary choice doesn’t deliver on its promise.

Once a decision is made, a more involved contract is drafted to cover specific projects the client wants the BPO company to handle. Ongoing revisions to the contract can occur to protect the relationship and ensure each party gets what they want out of the arrangement.

Benefits of Business Process Outsourcing

BPO can benefit your business in multiple ways, including:

  • More operational flexibility – Your team members are busier when they take on tasks outside their normal job functions. Outsourcing those responsibilities allows them to focus on their core functions.
  • Access to technology – BPO companies often use advanced technologies to provide unmatched services to their clients. Hiring a BPO company means you gain access to technologies you haven’t been able to use due to budget restrictions or inadequate knowledge of what’s out there.
  • Save money – You save costs by allowing another company to handle an entire department for you. Instead of paying expensive bills for desks, printers, phones, and other equipment, the outsourcing company already has what it needs to get the job done or takes on those expenses when necessary.
  • Forecast and adapt to changing industries – BPO companies have access to innovative technologies, advanced reporting, cost-saving measures, and internal flexibility. It allows businesses to adapt better to changes in customer demands and behaviors. For example, a BPO company with advanced reporting solutions can forecast future changes to help its client adapt before the changes occur.
  • Experienced and skilled team members – BPO companies hire professionals in the industry with the experience and credentials necessary for their specializations. Outsourcing business functions to top talent means you gain access to the same expertise, helping your business grow.
  • Reduce risk – When you outsource a business function to another company, those aspects of your company are in the hands of experts who know how to reduce and avoid risks. For example, outsourcing an IT department allows IT specialists to approach their tasks with greater attention to detail and the knowledge to mitigate risks to their clients better than an internal employee because of the IT specialists’ specific industry experience gained working for others.
  • More efficient reporting – BPO companies provide businesses with access to advanced technologies like automation, machine learning, and artificial intelligence. These technologies allow companies to review more advanced and efficient reporting, including cash flow and financial forecasting.

Explore Your BPO Options with Peak Outsourcing

Outsourcing business functions is valuable to your company’s future. With access to specialized expertise, more operational flexibility, innovative technologies, and efficient reporting through our business solution BPO services, you can surpass your competitors.

At Peak Outsourcing, we can help you turn your outsourced department into a well-oiled and successful machine. You can depend on our professionals to provide the necessary solutions tailored to your unique needs. Call 833-831-7325 or contact us online today to learn more.

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