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People usually equate a Business Process Outsourcing (BPO) company to a call center. Although they are relative in a sense, BPO companies and call centers are not the same. Even using the two terms interchangeably would be erroneous. What remains a fact, though, is that a call center is just one of the few services BPO companies provide their clients.

So, what really is BPO? Let’s get you started with the definitions.

These subcategories include: 

1.Front-Office BPO

2.Back-Office BPO

3.Offshore BPO

4.Nearshore BPO

5.Onshore/Domestic BPO

Business Process Outsourcing Types: Supply Chain and Services

Back-Office BPO

Back-office business process outsourcing involves contracting services that are not customer-facing. These services include IT, accounting, business process automation, human resources, quality assurance, and more. Subtypes of BPO have emerged, including IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process Outsourcing (KPO), such as outsourcing an individual who understands and can implement/manage a specific program. By outsourcing these tasks, businesses can focus on their core mission rather than engaging in time-consuming and expensive internal training and onboarding. 

Front-Office BPO

This term refers to customer-facing services, including tech support, customer service, sales, and marketing. These services are frequently outsourced due to technical knowledge requirements and can be accomplished off-premises. By outsourcing web development, customer support lines, or any front office services, businesses can benefit from specialized talent with unique knowledge and cut costs. 

Business Process Outsourcing Types:  Location of Vendor

Offshore BPO

Offshore outsourcing happens when your company hires a company located overseas to fulfill certain work requirements. One example is a company based in the United States outsourcing to a company in India.

Nearshore BPO

Nearshore outsourcing happens when you contract work to a neighboring country. An example of this is if your company is in the USA and you outsource to Mexico.

Onshore/Domestic BPO

Digital technologies have created new opportunities for business leaders. Traditional operations and business process outsourcing services models are being reinvented through more intelligent workflows using automation, artificial intelligence, the Internet of Things (IoT), cloud and other emerging technologies. To remain relevant and grow, businesses must constantly evolve to more intelligent, fully orchestrated processes that take into account customers, employees, suppliers and business partners alike.

BPO is the practice of contracting the services, business-related operations, or work processes of an external, third-party vendor. The umbrella term BPO covers a number of subcategories describing the location and function of the service provided.

These subcategories include: 

1.     Front-Office BPO

2.     Back-Office BPO

3.     Offshore BPO

4.     Nearshore BPO

5.     Onshore/Domestic BPO

In many cases, Bpo organizations outsource one or more functions. For example, instead of outsourcing all HR functions, the company will outsource just the payroll processes.

People usually equate a Business Process Outsourcing (BPO) company to a call center. Although they are relative in a sense, BPO companies and call centers are not the same. Even using the two terms interchangeably would be erroneous. What remains a fact, though, is that a call center is just one of the few services BPO companies provide their clients.

So, what really is BPO? Let’s get you started with the definitions.

These subcategories include:

1. Front-Office BPO

2. Back-Office BPO

3. Offshore BPO

4. Nearshore BPO

5. Onshore/Domestic BPO

Business Process Outsourcing Types: Supply Chain and Services

Back-Office BPO

Back-office business process outsourcing involves contracting services that are not customer-facing. These services include IT, accounting, business process automation, human resources, quality assurance, and more. Subtypes of BPO have emerged, including IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process Outsourcing (KPO), such as outsourcing an individual who understands and can implement/manage a specific program. By outsourcing these tasks, businesses can focus on their core mission rather than engaging in time-consuming and expensive internal training and onboarding.

Front-Office BPO

This term refers to customer-facing services, including tech support, customer service, sales, and marketing. These services are frequently outsourced due to technical knowledge requirements and can be accomplished off-premises. By outsourcing web development, customer support lines, or any front office services, businesses can benefit from specialized talent with unique knowledge and cut costs.

Business Process Outsourcing Types: Location of Vendor

  Offshore BPO

Offshore outsourcing happens when your company hires a company located overseas to fulfill certain work requirements. One example is a company based in the United States outsourcing to a company in India.

Nearshore BPO

Nearshore outsourcing happens when you contract works to a neighboring country. An example of this is if your company is in the USA and you outsource to Mexico.

Onshore/Domestic BPO

Digital technologies have created new opportunities for business leaders. Traditional operations and business process outsourcing services models are being reinvented through more intelligent workflows using automation, artificial intelligence, the Internet of Things (IoT), cloud and other emerging technologies. To remain relevant and grow, businesses must constantly evolve to more intelligent, fully orchestrated processes that take into account customers, employees, suppliers and business partners alike.

BPO is the practice of contracting the services, business-related operations, or work processes of an external, third-party vendor. The umbrella term BPO covers a number of subcategories describing the location and function of the service provided.

These subcategories include: 

1.     Front-Office BPO

2.     Back-Office BPO

3.     Offshore BPO

4.     Nearshore BPO

5.     Onshore/Domestic BPO

 In many cases, Bpo organizations outsource one or more functions. For example, instead of outsourcing all HR functions, the company will outsource just the payroll processes.

Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors.

Although BPO originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services, as well.

What is BPO Used For?

Organizations contract with Business process outsourcing vendors for two main areas:

1.     Back office operations: They include payment processing, information technology services, quality assurance, etc.

2.     Front office operations: They include marketing, sales, customer relations, and grievance redressal.

In many cases, organizations outsource one or more functions. For example, instead of outsourcing all HR functions, the company will outsource just the payroll processes.

KPO, LPO and RPO

Business process outsourcing is sometimes categorized by the types of services being provided; three categories commonly cited are the following:            

1.       Knowledge process outsourcing, or KPO, is when the outsource service provider is hired not only for its capacity to perform a particular business process or function, but also to provide expertise around it.

2.       Legal process outsourcing, or LPO, is a type of KPO that -- as the name states -- is specific to legal services; these range from drafting legal documents and performing legal research to offering advice.

Business process outsourcing (BPO) is the practice of contracting a specific work process or processes to an external service provider. The services can include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more. BPO usually fills supplementary — as opposed to core — business functions, with services that could be either technical or nontechnical.

Business process outsourcing services is often divided into different types based on the service provider's location:

·         Offshore outsourcing, or just offshoring, occurs when an organization contracts for services provided with a company in a foreign country.

·         Onshore outsourcing, or domestic outsourcing, happens when an organization contracts for services provided by a company that operates in the same country as the hiring organization.

Accounting and bookkeeping are an important part of any business but they are also complex and require time and specific skills. Without having proper knowledge for bookkeeping there might occur many errors and lead to a decrease the business performance.

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