A Guide to Business Process OutsourcingSeptember 9, 2022
Categorised in: News
Business Process Outsourcing, also known as BPO, is an increasingly popular solution for many companies, especially SMEs. Here are many good reasons for this, so here’s our complete guide on BPO and the Benefits it can Have for Your Business.
What is BPO?
Business Process Outsourcing refers to the practice of contracting an external service provider to perform certain tasks or company functions. This means that companies don’t need to dedicate their own resources to every business process. BPO first came to prominence in the 1970s, and it has since expanded to cover a wide variety of business administration and services.
You can Read Our FAQs on Business Process Outsourcing for more information.
What is Business Process Outsourcing used for?
Typically, BPO will be utilised to outsource supplementary processes such as Payroll, Human Resources (HR), marketing, customer support and more. All of these can be divided into two main categories of BPO:
- Back-Office Functions: This deals with common admin work such as payslips, HR, and IT services.
- Front-Office Functions: These are customer-facing tasks including support, sales, and marketing.
How does Outsourcing work?
The BPO market is filled with third parties that specialise in outsourcing specific business functions. This has allowed companies to choose what services they keep in-house regardless of their Size or Industry. Where these functions are outsourced to can be divided as follows:
- Onshore: BPO is contracted to a provider located in the same country as the company.
- Nearshore: Outsourcing to a country that borders the registered location of the business.
- Offshore: Outsourcing a function to a service provider in a foreign country.
What are the Benefits of BPO?
As covered in our Services Hub for Business Process Outsourcing, there are many company benefits to BPO including:
- Reduces time-consuming functions and frees up resources
- Frees up resources which can be used to focus on improving services
- Boosts Productivity & Efficiency, which can increase potential revenue
- It can Pay for Itself through reduced business expenditure and higher profits
- It often reduces risks and human errors, whilst improving compliance
Hive360: The Complete BPO Solution
Our business process outsourcing goes even further to add value by providing Employee Benefits as standard. This is included at no extra cost with our BPO services, improving Employee Engagement through a complete discount, payslip, and wellbeing package. This is especially Beneficial to SMEs, who often struggle to compete with the big employers and their benefits and wellbeing support. We make comprehensive benefits and support accessible to all.