BPO stands for Business Process Outsourcing, and it can be defined as a practice or a process contracting of non-primary business activities and functions to a third-party provider. Human resources, customer/call Centre relations, accounting, and many services like this fall under the category of BPO.

Another name that can describe Business Process Outsourcing is Information Technology-enabled services commonly known as ITES. It can also simply describe as Outsourcing another company for performing the task of your own business to operate successfully.

Business process outsourcing has its roots in almost every industry, including manufacturing industry, profit businesses, non-profit businesses, unions, even government agencies, and offices. In the case of the manufacturing industry, manufacturers hire other companies to handle the specific process of their business; for example, supply chains.

The critical point here is the companies don’t Hire Services for those core competencies which eventually required to make the end product. According to the research for the decade of 2013 to 2022, the total revenue generated from the business process Outsourcing is around $144.9 billion by the end of 2017. 

Types of business process outsourcing

The process of outsourcing the services cannot be described in just one single word because there are different categories and types which summaries and explain the services which are being hired by one organization from the other to perform in a better way. Because companies all around the World provide business process outsourcing services to the other organization. This way the categories are divided into the following parts.

Onshore Outsourcing services 

Onshore Outsourcing services are basically domestic Outsourcing services. in this contract, one organization has the services provided by a company that operates in the same country.

Offshore Outsourcing services

Offshore Outsourcing Services are for outsourcing services as shown in the word self it is the process of hiring services from an international or foreign country that is not located inside the same country.

Nearshore Outsourcing services

We are talking about business process outsourcing services that are a contract in which one company has a service from an organization that is based in the neighboring countries for benefit purposes.

Advantages of business process outsourcing BPO

As we all have the knowledge that the Outsourcing market is growing tremendously and in the coming years, it is going to take over the market. There are some advantages which are helping the whole process make its way to the top smoothly.

Productivity improvement

Business process outsourcing measures significant points and enables corporate executives to concentrate upon the business core areas to flourish successfully. Typically conventionally executives spend most of their time in the management of details and which leaves a small amount of time to formulate strategies to work upon.

This is the point where business process outsourcing BPO comes to save the time and help the executive not to explore new revenues areas but also illustrate other projects to focus on their customers in full potential and this way the productivity heads the maximum amount.

Because of BPO, people with a better skill set, education, and experience get to perform the task more effectively and thus leading towards the improvement in the productivity of the company overall.

Utilization of the resources to the optimum level

Business process outsourcing is an opportunity for the optimum uses of the resources. The organization gets the opportunity to capture new efficiencies and relocate the resources. As a result, the effectiveness, as well as productivity, increases eventually.

When the adoption of sophisticated technologies and the availability of skilled employees is being mixed, then maximum productivity and utilizing the resources to the maximum extent is the typical outcome.

Cost reduction

All businesses are looking for the maximum output but investing more than you are getting is never a good business deal. All of the organization seems towards arrangements and processes through which they can cut the cost.

With the help of business process outsourcing, you will just not be reducing the price only, but the productivity and the revenue will be increasing significantly as well. Improvements, utilizing Technologies that lower cost, administrative changes, all of these possible solutions plays a role in the cost reduction.

However, outsourcing is the major one because the way the company can have low rates with better service solutions for its customers and eventually have a better market position and even have a competitive advantage over there competitors.


As described earlier that non-core activities are being assigned to the organization which is being hired as an outsourcer. This way, the company has the opportunity to be more flexible without the fear of investment in additional fixed assets and focus on the variable cost for the benefit.

The BPO is not only helpful for the resource management of the client company to be flexible, but it also helps with the changes in the environment much faster.

 Round the clock BPO

With the help of business process outsourcing, you will have the advantage of streamlining a number of different business processes at one time. The extensive in house training wouldn’t be an issue anymore to update your workforce inside about the task.

As you will be Outsourcing the qualified team of professionals who already have on hand experience in the specific job for you. This way, you will be removing a huge junk of time-consuming task from your internal structure and also saving a ton of money from extensive in house training.

Quick turnaround time

Another valuable benefit of Business Process Outsourcing is the quick turnaround time for your customers as well as scalability will never be an issue for you again. With the help of the highly skilled and professional workforce, your business needs will be taken care of 24 hours a day and seven days a week without concerning or stressing you out in person.

The Offshore team you have hired for your services will be able to satisfy the customer needs and demand regardless of their nature as they will be fully equipped to manage in all terms and manners.

Getting expertise from skilled professionals

Business does not just include rendering a service or selling a product to the customers. A whole bunch of practices needed to be handled directly or indirectly to perform and stand out victorious. To make the most out of your business potential, you will require expertise and skilled professionals for your business, but that does not mean that you have to spend much money on hiring every expert.

Business process outsourcing is a solution for just not Outsourcing the services you need at that time but also to gain expertise from skilled professionals. If you take an example that members of the team of the sale have the potential of doing more than just filing documents on a system are their potential is being restricted because of primary tasks.

You have to hire outsourcers so that other activities can be done successfully and your workforce is able to reach their full potential using their expertise. This way, your employees will not just have more free time to focus, but they were also doing professional secondary or essential tasks which will be a boost for their self-esteem as well.

Risks analysis

One of the most significant advantages of business process outsourcing service providers is the ability to analyze the risks beforehand. Outsourcers are highly skilled and specialized people of the field they will be able to quickly analyze the risk which will be involved in the process and this way the Strategies and plans can we customize and personalized to get the full out of every single penny being invested.

Business operations data entry, application processing, quality insurance, and few other services like these are quite essential, but they are more than just day-to-day basis operations which makes a business successful. Such standard tasks can be done by an outsourcer who is not a trained professional employee.

Your employees will be able to get back to their critical operations. The organizations which you will be Outsourcing are specialized in wide Ray of supplementary tasks. Team members will be a huge help, and they will focus their entire tension on the primary tasks for your enterprise. So you will be getting the best of both Worlds.

Speed of business process outsourcing

It goes without even saying that the speed of business process outsourcing service providers is more than other employees and professionals. Because they don’t have specific expertise in doing primary jobs. Outsourcers have a good response time, and the clients can focus on the core activities without any stress.

The fragmentation of activities between professionals and the outsourcer’s speed of the whole process and maximum productivity is the outcome.


There are endless advantages of business process outsourcing whether you are a Startup or a large Enterprise, an experienced and knowledgeable business Handler or a person who is just starting a new company, the size and the experience do not matter.

Hiring a business process outsourcing service provider is going to be the help your business needs to stand out and work effectively. However, doing the proper research beforehand helps find out the nature of the services your company needs and what kind of services providers are offering.

The selection of business process outsourcing must be in line with your business needs and objectives. Otherwise, the whole process will be for nothing.

What is your opinion about the business process outsourcing BPO?

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