All about BPO

What is BPO?

BPO is an acronym for Business Process Outsourcing. In concrete terms, it’s a marketing concept that refers to the fact that a company subcontracts to another, more qualified structure when it comes to certain assignments or business processes.

What we mean here is that the company calls on a service provider when its employees are unable to carry out a particular assignment. This approach is known as Business Process Outsourcing (BPO).

BPO can be used when the tasks to be performed are essential, but not vital to the company’s visibility in the marketplace.

What is the usual definition of BPO in marketing?

In marketing, BPO is used to designate all activities outsourced by a company within a call center or customer contact center. In this case, the company will use outsourcers to manage its customer service.

What are the different types of BPO?

BPO, the outsourcing of business processes, can be divided into two categories. These are the two types of BPO usually found in the business world.

So we have a BPO for the front office. Business process outsourcing covers all operations related to customer relations. These include services such as marketing, customer support and many others.

The second category of BPO is back-office BPO. Here, this includes the internal departments of the outsourcing company. This category includes various tasks such as invoicing, purchasing, etc.

What does BPO represent on an international scale?

A company may decide tooutsource its business processes internationally. When this happens, we use the term “offshore outsourcing” to refer to this BPO.

It’s important to remember that “nearshore outsourcing” is when the service provider and the outsourcing company are located in two countries not far apart.

When subcontracting is carried out in the same country, it is referred to as “onshore outsourcing”. But for this to happen, the company and the service provider have to be located in two different regions of the same country.

What are the benefits of business process outsourcing?

Outsourcing part or all of an assignment can be highly beneficial to your company’s bottom line. In some countries, taxes and salaries are much lower than in your region.

This economic argument is very important for companies outsourcing to countries with low GDP, such as developing countries. Setting up a call center or customer service center in such regions can be very lucrative.

By opting for BPO, you become more flexible. Your company can quickly adapt to market reactions and be more alert than the competition.

Also read: How do I start selling online?