Business Process Outsourcing – Helping Small and Large Business in Various Industries

1. Business process outsourcing is very in-demand these days and many businesses have already hired BPO services. With BPO services, businesses are able to focus more on the growth and development of the business rather than focusing on tasks that can simply be done by a third-party service provider. There are various types of business process outsourcing along with its various advantages and a few disadvantages. When discussing BPO services, it is important to know that knowledge-based outsourcing is a subcategory of this type of service and has a more specialized approach to the tasks and data handled. Business Process Outsourcing – Helping Small and Large Business in Various Industries Business process outsourcing has become rather on demand nowadays. However, it does cover a wide area. This type of service refers to the contracting of specific operations and responsibilities for a certain business process to a third-party service provider. By opting for a business process outsourcing, some tasks that a company needs but not totally dependent on are outsourced and handled by a third party organization, which can ultimately save costs for the company. Business process outsourcing is categorized into two, which are the back office outsourcing and front office outsourcing. Back office outsourcing involves different tasks like data entry, data management, surveys, payment processing, quality assurance, and accounting support. Such tasks are essential to the core business processes and allow the business to run smoothly. On the other hand, front office outsourcing includes specific services like fax, telephonic conversations, email and other forms of interaction with clients and consumers. Most companies will hire business process outsourcing services in market research, customer service, customer support, inbound and outbound sales, appointment scheduling, and technical support. Options for Business Process Outsourcing Solutions Business process outsourcing services are offered in various countries. There are several options when it comes to hiring business process services. Onshore outsourcing is a term that refers to domestic outsourcing. For this option, services are achieved from someone outside the company but within the same country. On the other hand, offshore outsourcing is a type of business process service that exports information technology tasks from other countries, which is associated with tax savings and reduced labor costs. Nearshore outsourcing refers to outsourced services provided by contractors from neighboring countries rather than contractors from within the same country. Advantages of Business Process Outsourcing Business process outsourcing offers numerous benefits to both small and large companies and organizations.

2. • Allows Businesses to Focus More on Important Business Matters. With business process outsourcing, business owners can successfully expand their products and services. In fact, most business owners who opt to hire business process outsourcing services would want to expand the business but they often do not have enough time and resources to make it work. With BPO or business process outsourcing services, this can be achieved as some tasks are delegated to a third-party service provider, allowing the business owners and employees to pay attention to more important matters for the growth and development of the business. • Allows Businesses to Improve their Productivity. BPO service providers have mastered their craft and have been providing the best services alongside with the best resources and most advanced technology. That said, business productivity is boosted not just for the employees but for the entire organization as well. • Reduced Significant Costs. BPO service providers can also provide a cost-effective financial strategy to an organization, which will significantly reduce costs without sacrificing the quality of the products and services of the company. • Enables the Business to Have the Power to Reassign Resources. If you are considering hiring BPO services, you most likely have resources working on mail and other paper-based tasks. With business process outsourcing, businesses gain the power to reassign resources and cut on such tasks. • Business Are Getting State of the Art and Up to Date Processes. This is perhaps the most important benefit that companies get from BPO services. BPO service providers have the resources and are up to date with the latest technological advancement, so the business is guaranteed that they are getting the best services. BPO services are constantly working to improve and upgrade not just their facilities but also their employees. Disadvantages of Business Process Outsourcing Like any other innovation, business process outsourcing services also has its fair share of disadvantages. For instance, businesses and organizations that hire BPO services tend to become extra dependent on BPO service providers and they tend towards not being to function properly without their help. Also, other disadvantages of BPO services include underestimating the running costs of the services and communication problems, which tend to delay project completion and affect the performance of the company. What about KPO or Knowledge Process Outsourcing? With business process outsourcing comes knowledge process outsourcing or KPO. KPO is a subset of BPO. This type of outsourcing involves the outsourcing of core functions that add value to the service without necessarily involving any monetary benefits to the parent company.

3. The processes that are outsourced to KPO service providers are typically knowledge-based and they are rather specialized compared to the processes outsourced to BPO service providers. Examples of such services include legal services, design and animation, biotechnology, insurance market services, and R&D. Since both BPO and KPO are growing in the industry, it is vital to know the difference between the two. To put it simply, BPO is basically the outsourcing of tasks to a third-party service provider to save costs and expenses. On the other hand, KPO is considered a subcategory of BPO. It includes knowledge-based and specialized tasks. Types of Business Process Outsourcing There are two types of business process outsourcing, horizontal BPO, and vertical BPO. Horizontal business process outsourcing is a function centered outsourcing. This type of service includes payroll processing, facility management, procurement, and other related functions. There are also many companies that acquire business process outsourcing services like benefits administration, tax solutions, and human resource services, which are all under horizontal business process outsourcing. Vertical business process outsourcing, on the other hand, involves different areas of function in several industry domains. Examples of vertical business process outsourcing domains include manufacturing, financial services, healthcare, and retail. Wrapping Up Business process outsourcing services has provided numerous benefits for both large and small businesses these days. By hiring such services, companies and organizations are able to focus more on more important business matters because they are able to delegate tasks to a third party service provider. In addition, by hiring a business process outsourcing service provider, companies and organizations are able to have better data security, as BPO companies are equipped with the latest technology that promotes security and state of the art services. References: https://www.techopedia.com/definition/13776/business-process-outsourcing-bpo https://searchcio.techtarget.com/definition/business-process-outsourcing