BPO is an outsourcing branch. More formally known as business process outsourcing, it is a practice involving contracting out one company’s functions to another. BPO can be categorized into front office and back office outsourcing. The latter includes functions like accounting, human resource or finance. The former involves customer services like call/contact center solutions.
The BPO process is predetermined and proven, and its executor should confirm that every procedure is put into effect consistently and effectively, wherever it is situated.
Types of BPO
There are various BPO types that offer different services, which include the following.
The BPO companies offer offline entry of data, like creating documents and updating business data, or the online entry that includes updating web data, databases and catalogues.
Call Center Outsourcing
The BPOs get inbound calls from customers or make outbound calls for marketing, and they even serve the role of a technical support center.
These BPOs give services associated with accounting, financial analysis and accounting.
These specialize in medical billing, medical coding and making medical transcripts.
This form of BPO gives a wide variety of solutions in the mechanical field, the structure or the civil field.
Advantages of BPO
Some of the main benefits of business process outsourcing are as follows.
Higher Margins of Profit
The biggest benefit of contracting out your activities to another company is that the latter will have human assets available at low salaries. In other words, by outsourcing your processes, you avail that third-party’s staff, and you can cut down your own payroll.
Better Focus on Core Business
With most non-primary tasks out of your way, you can afford to relax and pay more attention to your core areas of operation.
Access to Up-to-Date Technology
Small and midsized businesses are not able to pay for the latest programs’ licensed version, so they outsource tasks to companies with access to these applications. This also presents SMBs with a financial benefit in that they will not have to invest in the said form of software.
The Main Challenges in the BPO Sector
The biggest challenge of BPO is high staff turnover. In other words, in this area of business, people come and go from time to time, and only the committed ones stay at one place for a long time. The main reason for the high churn rate is that after they learn everything, BOP work gets rather monotonous for people.