What is BPO services And What Are The Services They Provide?
Business process outsourcing (BPO) Services means when a company hires an external provider to handle certain non-essential tasks.
However, if you are still wondering what is BPO Services and how does it help? Then, the answer is simple.
Business process outsourcing services is a business practice in which a company hires an outside service provider to complete one or more non-core business functions. By delegating these non-core tasks to outside professionals companies focus on their core competencies and growth strategies.
Some important BPO services offered by an outsourcing company are accounts payable, office administrative services, human resources, labor management, claims and payment processing, and so on.
How Does Business Process Outsourcing (BPO) Work?
If you still haven’t got a clear picture about what is BPO Services? Then, let us dive deep and understand how BPO works.
Companies often outsource specific functions of their businesses to outside professional providers. These providers can either be local, nearshore or offshore. We here at WorkerMan deliver tailored solutions to different business niches, enabling them to propel further. A service provider manages following tasks such as -
- Claim or invoice processing
- Hiring of candidates
- Training of employees
- Maintaining personnel in accordance.
According to a survey by Statista in 2021, 57% of organizations use business process outsourcing to concentrate on core issues and operations by delegating their non-core functions to third parties.
What Services Are Most Frequently Outsourced?
Employers frequently outsource operations that they do not have the time or resources to manage successfully. These are classified into two types, as given below.
They mostly relate to providing quality services to the company. Some of the back office BPO services are-
- Human Resources and
- Information Technology
These services mostly deal with customers interactions, inquires and support. Some of the functions are-
- Customer Support and
According to a survey by Deloitte in 2022, 76℅ of the executives confirmed outsourcing IT functions.
What Types Of Companies Use Business Process Services?
Businesses from various industries take the help of BPO customer services for their organization. Several of them are mentioned below.
Accounting departments are taking the help of BPO services by outsourcing various day-to-day financial tasks.
An increasing number of law firms is using BPO businesses. This is known as Legal Process Outsourcing or LPO.
BPO services providers conduct real estate analytics, such as fee analysis and benchmarking, for property managers, building contractors, and real estate developers.
HR departments have a considerable amount of important work on their hands, so they are increasingly relying on BPO services.
They usually need someone to be available 24*7 to respond to questions by email, social media, and phone.
These are just a few of the industries that utilize outsourcing services actively. Many other business types take the help of a third-party agency for their business functions; this explains what BPO services are.
According to a survey by Deloitte, the five most outsourced business processes by firms are legal functions (64%), tax (61%), HR (57%), finance (51%), and manufacturing and supply chain procurement (48%).
How Is BPO Different From A Call Center?
Business process services and call center services are two related terms, but they are not the same. They are different from each other in several ways.
- Business process outsourcing services tackle non-core operations or functions of other businesses. On the other hand, a call center service is a specific type of front office BPO service that handles incoming and outgoing calls for customer service, sales, and other support.
- BPO outsourcing services are designed and implemented to help businesses save money or increase productivity. Whereas a call center primarily handles consumer complaints, order-taking questions, and booking inquiries received over the phone.
- The scope of business process outsourcing services is broad, but it is limited to non-core duties such as back-office administration, data collecting, and customer contact via manual attempts and AI-based services such as chatbots but with the increasing technology and resources, BPO businesses are going to help you in every way possible.
According to a survey by Clutch, about 83% of small businesses are planning to keep or increase their BPO budget in 2023, showing the bright future of BPO.
Benefits Of Business Process Outsourcing Services
Business process services offer many benefits to your company. Several of them are mentioned down below.
BPO Helps In Cost Saving
One of the most important benefits offered by BPO services is cost savings. Typically, a large portion of your overhead cost is spent on staffing and the related hiring, training, and onboarding process. It is both costly and time-consuming.
You can simply hire a BPO agency and delegate the non-important work to them, freeing your employees and giving them the more important work.
BPO Saves Time
BPO global services will help you save your precious time. An employee will spend roughly half of their time on repetitive, digital duties. You should make the most of your employee's expertise, skills, and experience.
Outsourcing business process services will allow you to ensure that your staff is satisfied and that all of their strengths are valued, resulting in increased work efficiency and success for your company.
BPO Handles Non-Core Operations More Efficiently
Non-core business functions can be easily simplified by outsourcing them to third parties. Your company processes will be handled by experts from your BPO service agency in return, saving your time, improving accuracy, and increasing productivity. You will not have to devote extra time, money, and energy. Business process outsourcing services give your company more time to focus on core operations.
BPO Makes Your Business More Flexible
When you outsource to a BPO service provider, you entrust business operations that need assistance from highly experienced and trained individuals with a good knowledge of their work. Informed decisions and smooth operations can make your businesses more flexible.
According to a survey by Statista, the BPO market is said to generate a revenue worth US$0.35 trillion in 2023.
If you still ask what is BPO services? You must give it a try for your company and enjoy its benefits. You will see your brand escalate its brand visibility and succeed. You can delegate your precious time to the important work which needs your expertise. Overall, BPO outsourcing is the best thing you can do for your business.