What is BPO full form?

BPO is an abbreviation of business process outsourcing. It refers to when companies outsource business operations to an external company. Did you know that outsourcing is a $6 trillion industry in the business world? It is one of the largest service industries in our economy.

Businesses Process Outsourcing involves the outsourcing of certain business functions to a third-party provider. This outsourcing type is usually used to lower costs. It may also be beneficial for companies that require specific services.

BPO services can be divided into two categories: Back Office outsourcing and Front Office outsourcing. Back office outsourcing encompasses the collection, billing, and purchasing tasks, and front office outsourcing involves more customer-service-related functions, like technical assistance.

BPO is also available through call centers. An example is outsourcing customer service to an in-house call center. But outsourcing business processes do not just cover customer service and call center services. A manufacturer could use BPO to outsource administrative tasks such as payroll and accounting.

How do you need to get BPO?

Companies across the globe are increasingly accepting business process outsourcing.

Consider the following:

Helps with cost Reduction

BPO can help companies to control their finances and reduce costs. Non-core business functions are often complex and costly. Can outsource These functions to businesses at a predictable and affordable cost.

Less Emphasis on core Process

Companies can concentrate on their core competencies when they outsource non-core business functions. Outsourcing helps companies avoid investing in new equipment or facilities that will support their business functions. Companies can therefore perform effectively without compromising the quality of non-core processes.

Enhances Business Productivity

Outsourcing companies for business processes have a primary focus on non-core business functions and a specialization in them. They invest in these activities to improve their efficiency, expertise, performance, and profitability. All of this will result in better services for your business and more productivity.

Enables Better Resource allocation

If businesses decide not to outsource non-core operations, they will need to spend significant investment and expense on various elements. It is a cost-saving choice to outsource business functions. You can then reassign the resources to increase the core tasks of your business.

Access the most up-to-date Technological Resources

Companies that outsource business processes stay current on the most recent business practices and innovative ideas. It helps businesses stay on top of innovation and technology without spending a lot. BPO investments can give them cutting-edge capabilities without them having to invest.

BPO Services

BPO services offered included

  • Accounting and payroll
  • Telemarketing
  • Record of data
  • Marketing via social media
  • IT Services and Management
  • Manufacturing
  • customer support


Types of BPO

There is a variety of business process outsourcing options:

Offshore Outsourcing

The strategic practice in which a company hires a third-party supplier to do the work in a country other than where it is primarily doing its business. The vendor or business process outsourcing company is situated outside of the country where the company’s headquarters is located.

Near-shore Outsourcing

Near-shore outsourcing is a strategic practice that involves outsourcing a company’s business functions and processes to vendors located in neighboring countries.

On-shore Outsourcing

On-shore outsourcing means that both the company and contractor are located within the country.

Although the company and contractor may reside in different areas or states, they will still be within the territory of the same country.

Different types of outsourcing

Other than outsourcing business processes, there are many other types of outsourcing.

  • Knowledge Outsourcing refers to the outsourcing of knowledge and information to third-party service providers.
  •  Legal process outsourcing is a KPO that focuses on legal services, such as legal document writing, legal research, and legal advice.
  • Outsourcing is another type of KPO, which is focused on the analysis and research functions of companies.

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