Business Process Outsourcing

Business Process Outsourcing (BPO)

BPO is no longer a choice—in the modern world, it’s a necessity.

What is Business Process Outsourcing?

Business process outsourcing (BPO) is when a company entrusts one or more IT-focused business processes to a third-party service provider to administer and manage based on pre-set, calculable performance metrics. As a valued way to solve both traditional and modern market complexities, BPO can provide a flexible array of services and alternatives for restructuring, processing, and operating essential business tasks.


Traditional BPO includes call center solutions to efficiently handle inbound/outbound customer calls and shifting tech operations to lower-cost markets to reduce labor expenses. Contemporary BPO companies have grown into strategic partners for various industries by sourcing high-tech infrastructures and blending them with human intelligence. BPO contact center services have transformed over the years, with modern customer service outsourcing now including virtual agents. This shows how BPO is continually evolving to deliver the best possible strategic outcomes for customers and companies.


Accelerating business growth in today’s post-pandemic world requires ongoing innovation to deliver real-time business value. A good BPO service provider can help you better serve your customers and outperform your competitors by combining skilled agents, AI-powered technologies, tailored training programs, and a seamless transition framework.


While BPO is making enterprise operations more agile and intelligent, business leaders and executives may still be skeptical about data, security, and service quality. But these concerns and fears are misguided. In a modern CX world, BPO provides an exceptional opportunity to redesign processes digitally using data, technology, and skills, and can mitigate even the smallest chance of data breaches.


Task-Based BPO Service Categorization

The BPO industry is developing rapidly and adding new tasks for various industries along the way. Based on services executed for an organization or vertical, there are four main BPO categories:


  • Front-office services: Front-office outsourcing services meet the demand of BPO executives who directly communicate with clients and customers—playing a crucial role in providing marketing and tech support. This type of service includes tasks like email, phone conversations, fax, and various other customer interactions.


  • Back-office services: Back-office tasks are vital for core business processes. When it comes to taking care of these key internal needs, BPO can take on administrative chores like quality assurance, order processing, and payment processing. Other tasks BPO service providers can handle include data management, account support, data entry, and surveys.


  • Vertical services: This is the fastest growing segment in the outsourcing industry. Vertical BPO brings up new opportunities for enterprises to launch new products and services. The vertical services operating model is customized around the integrated expertise of outsourcers, suppliers, and other vendors.


  • Horizontal services: When it comes to industry-specific functions, some BPO companies offer horizontal services. Horizontal outsourcing is used when catering to an industry such as e-commerce that would demand solutions like inbound call center support, email and chat support, data entry, forms processing, and other digitization services.




Source: Tutorial Reports: Types of BPO Services.

What is BPO

Video: Learn More About BPO