BPO Full-Form and Definition
The full form of BPO is Business Process Outsourcing. It refers to the process of hiring external companies or specialized third-party service providers to help with a certain business task or function. By using BPO, the business focuses more on core activities and transfers non-core processes to vendors from outside trained in that particular outsourced tasks. BPO helps streamline business operations, reduce costs, and improve service quality, while significantly saving time and risk of error.
Types of BPO
- Back-office BPO – refers to the appointment of professionals who complete internal operations such as payroll, human resources, IT services, managing inventory and billing, etc.
- Front-office BPO deals with external activities of the business such as sales, technology, marketing, and customer service.
- Offshore BPO – occurs when a company outsources its operations to an organization located in another country.
- Nearshore BPO – a company outsourcing services to a vendor in a neighboring country.
- Onshore BPO – also known as domestic BPO, it involves outsourcing business functions to vendors within the same country. Involves functions such as regional cost differences, specialized skills, easier travel for training, support, or collaboration.
Advantages of BPO
By outsourcing professionals for the non-core tasks, companies divert their focus on their priority tasks such as product development, innovation, and customer relationship management. This also increases productivity and provides access to specialised skills thus improving the quality of the end result of the process.
With increasing BPO services, there has been a significant increase in the efficiency of businesses and their work output, which further opens new and innovative opportunities for the company’s overall development and position.
