Man setting on chair and making presentation for business process outsourcing
Man setting on chair and making presentation for business process outsourcing

Business process outsourcing is not a new corporate strategy. Initially, companies related to the information technology used to mainly outsource but things have changed over the past few years, now big organisations have happily partnered with third-party providers to reduce cost, increase efficiency and improve the quality of business processes ranging from the simplest of transactions to their core competencies.

In fact, today, it is estimated that about 40 per cent of Fortune 500 companies outsource at least some of their core business processes to a third-party contractor.

As we know, most companies don’t have the staff, tools and budget to meet their customers’ expectations of call centre service. According to a recent survey, 51% of customers expect a response to their complaint or query in less than five minutes when they call a company so catering to such needs is not an easy task and this is where a business process outsourcing call centre comes in…

What Is Business Process Outsourcing? What Does it Mean?

Business process outsourcing (BPO) is the practice of enhancing how your business functions by contracting a specific business service to an external service provider. The services can include accounting, taxi dispatching, marketing, data recording, social media marketing, customer support, and more.

This article has everything you need to know about business process outsourcing: what it is, and the different categories of BPO and why do businesses go for it.


The BPO industry is divided into three categories:

  • Offshore Outsourcing: They are located outside of the company’s own country. For example, a UK taxi company may use an offshore BPO vendor in Sri Lanka.
  • Nearshore: These outsourcing companies are located in countries that neighbour the contracting company’s country. For example, in the UK, a BPO in Ireland is considered a nearshore vendor.
  • Onshore: These service providers operate within the same country as the contractor, although they may be located in a different city.


  1. You Can Reduce Costs:

Outsourcing cuts down on costs for your in house employees. It also saves cost as the company manages to save the workspace to grow their core departments. A key benefit to this is that an outsourcing company that is physically located in a developing country offers lower costs than the rest.

  1. To Concentrate on Key Functions:

BPO outsourcing allows businesses to focus on their main departments and services instead of company departments that are not direct with their core processes.

For example, when outsourcing, the company will not have to monitor the customer care department. Rather, it can focus on highlighting its core business and maximising overall growth. In turn, these actions can boost a company’s performance and enhance its interactions with clients. In the end, the company can enjoy improved customer satisfaction and increased profits.

  1. Increased Security:

Outsourcing companies that specialise in handling financial departments can often provide better security from cyber theft and this particular benefit will be more appealing to you if own a small business.  Small businesses that do not have the resources for in-house cybersecurity can take advantage of this.

  1. To Expand their Global Presence:

Some BPO companies can serve customers in multiple languages, 24/7 service meaning each time zone can be catered, thus relieving and giving a break to the contractor. Outsourcing companies can leverage their presence in multiple countries and promote diversity this way.

  1. More Efficiency:

Because outsourcing companies specialise in the services they provide, their agents/operators can handle different situations way more efficiently than most in-house employees.

  1. Better Coverage:

Outsourcing firms train multiple employees for the same tasks, promoting diversity and offering a talent pool. That means you never have to worry about falling behind if someone calls in sick. Let’s not forget that they usually work around the clock so you will never miss a call from your customer.


  1. Only Large Companies Outsource: Times have changed for the better and now many small businesses have started outsourcing their services to reduce costs and increase efficiency.
  2. Communication Becomes Difficult: Many people believe that partnering with a third party will increase confusion but that is not the case. In fact, communication becomes seamless once you are on board with a reliable third-party vendor.
  3. Fearing the New Staff: Companies are reluctant to hire a third-party vendor because they feel that the new staff will not understand their needs and a cultural gap might become an obstacle. It is important to note that a professional BPO will always train their workers according to your needs. So the new workers will only help your business flourish.

Read More: A Complete Guide to Understanding Offshore Software Development


Outsourcing your business services to a third party vendor is one of the main tools that modern businesses can use to progress. To summarise it all, Outsourcing cuts down on labour costs, gives a competitive advantage over your rivals, increases service levels and creates a long term bond with your clients.

We hope this article helped you understand everything about business process outsourcing and why it can be a game-changer for your business.


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