Many businesses, be they startups or large companies, opt to outsource processes as new and innovative services are rapidly becoming available in today’s ever-changing, highly competitive business climate.

Contrarily, front-office BPO tasks commonly involve customer-related functions like tech support, sales, and marketing.

What is the goal of BPO and what are its types?

BPO is the abbreviation for “business process outsourcing,” which refers to when companies outsource business processes to a third-party (external) company. One of the primary goals is to cut costs, free up time, and focus on the core aspects of the business.

There are two types of BPO: front-office and back-office.

Back-office BPO entails the internal aspects of a business, such as a payroll, inventory purchasing, and billing. It is also known as “internal business functions”. These are the functions that are aimed at the stakeholders within the organization. Most times, back-office functions are processes that will require an entire department, budget, and a large number of personnel to do;
While front-office BPO focuses on activities external to the company, such as marketing and customer service. It is also known as “external business functions”. Front-office functions include customer relations services, marketing, and sales. It is all about finding new customers for business and satisfying the needs of existing customers.

What are the types of BPO companies?

There are three primary types of BPO companies: These are local outsourcing, offshore outsourcing, and nearshore outsourcing.

Local outsourcing – is done by a company that is in the same country as your business.
Offshore outsourcing – is a company that is in another country;
And nearshore outsourcing – is a company that is in a country that is not too far from your country.

What is a BPO Call Center?

On behalf of other businesses, a BPO call center handles outsourced incoming and outgoing customer calls. Many BPO call centers will have agents who can handle customer complaints or inquiries for a variety of different companies, often within a specific specialty. For example, one call center agent may be able to field technical support phone calls for a variety of vendors or manufacturers.

Conclusion

Business process outsourcing (BPO) utilizes third-party specialists to carry out some part of a business process or operation (as opposed to outsourcing the entire production). BPO can lower a company’s costs, increase efficiency, and provide flexibility. At the same time, the BPO industry is rapidly growing, which means that in our increasingly global economy, process outsourcing is not going anywhere. Sooner or later, this industry will get to the top. As technology evolves, it also arises.