BPO stands for Business Process Outsourcing. It denotes setting a business task carried out by an outside agency. Most Often Call Centers and BPO service is used correspondently but they are not the same. Call Centre companies resolve customer’s queries by attending Phone calls. However, BPO Companies are focused on performing back or front office tasks of any business.
Business Process Outsourcing is a set or defined process. It is a sort of repeatable action, where a bunch of people gets trained to do the same tasks as what to reply to different questions and where the executor has to apply only a few discretions. Accounting, telemarketing, social marketing, payroll, and customer are some of the most common examples of Business Process Outsourcing.
Types of Business Process Outsourcing
Business Process Outsourcing is mainly divided into two types; back office and front office.
Back-Office BPO
Back office BPO service is a segment of a company, consisting of Administration and support personnel that are not client-facing. The most common back-office business process outsourcing task is Payroll. If a company has a good quantity of employees, it will consume abundant time and resources to carry out a payroll function for a company.
Front-Office BPO
Front office BPO includes the services that are related to customer care. The most common front-office business process outsourcing task is tele calling for feedback. Let’s Suppose you bought a thing, and the company wants to take feedback about their thing. The company will outsource this task to an opensource Call Centre software company, where its employees have expertise in taking feedbacks.
Reasons for Opting BPO Service
A business opts for this reason for a variety of different reasons. There are three most usual reasons for a business to opt BPO.
- When a company is facing too much wastage in any area of the business due to the less skilled employees or whatsoever reason, BPO companies offer to get it done for you in highly exceptional quality
- When a business lacks knowledge in a specific field it may outsource the work of that field to a skilled person to get it done perfectly
- When a business carries forward so many tasks and is not able to pay enough attention to any particular area, BPO Service could be the best thing they should opt for.
- When a company does not want to invest a big amount into a new project of which they are not sure what result they will gain, Outsourcing it to a BPO company can secure your money by doing that work at a comparatively low rate.
Benefits of Business Process Outsourcing
The concept of a BPO services company is to accomplish tasks of other companies which they are facing trouble in carrying out their selves. There are several benefits of BPO companies, amongst which some are as follows.
1. Improvement in Productivity
Suppose, there is an occasion and you ask a random person a task, who does not even know how to do that work. By doing so, you will take a risk. If the final result will not come out according to your expectations, it will cause wastage and your reputation may get ruined as well. Instead, if you outsource this task to a skilled person, he/she will do it efficiently and thus improve productivity. BPO companies are a good source of preventing yourself from wastage and helps to maintain your reputation.
2. Optimum Utilization
BPO sanctions the optimum utilization of scarce resources. A company can take benefit of its resources, but with business process outsourcing, a company can take benefit of outside resources as well.
3. Reduction in Cost
Suppose, your company will start taking feedbacks itself instead of outsourcing it, your company will then require a space for a call center office, hire employees, purchase necessary assets for the office, and so on. By opting for a BPO Company, one can reduce the cost to a great extent and can help you generate more revenue. BPO services are not free, but these services are not as expensive as building an entire office or starting a new work by yourself. As your companies’ expenses reduce, profit will increase eventually.
4. Helps Improving Human Resource
Improving human resources is another great benefit to human resources. BPO companies have the most skilled persons to get your work done by them. These companies train their employees for the services they offer and thus make them perfectly expert. Outsourcing tasks provide a company to get benefits from skilled manpower at a low rate.
5. Expanded Coverage
BPO services company employees are experts that attain the tasks with the latest technology and practices which results in great productivity and high-graded efficiency. Well, an efficient company helps you to grow higher and expand your business coverage.