What Is Business Process Outsourcing?

You may have heard about business process outsourcing (BPO) before, but what exactly is it? What can it do for you? BPO is when an organization uses a third party to perform a certain process for their behalf. Outsourcing allows organizations to focus on more important matters. BPO can be used for back office and front office processes. Back office processes include payroll, accounting, and human resources. Front office includes customer service, marketing- research and advertising. It’s true that many large corporations use business process outsourcing, but that doesn’t mean that it will work for smaller organizations. In fact, it would be extremely useful on a smaller scale because it’s the difference of hiring a permanent employee or service or just using it when you need it. It’s more than that. Yes, many organizations use BPO for cost reductions or because they don’t have the knowledge, or time, to complete the process accurately.

The benefits of BPO are:
  • Outsourced business processes are faster and more efficient. They allow for reduction in research, marketing and distribution costs.
  • BPO flexibility allows the choice of relevant services for operations. Shift your organizations focus to other activities and priorities that better serve the customer.
  • The reports are accurate and fast
  • Save resources that would be used for staffing and training. It lets your organization focus your human resources where it’s really needed.

Outsourcing is a great way for many companies to maximize potential benefits. In reality, there are many misconceptions about outsourcing that have led to inaction in the outsourcing department. Despite these misunderstandings and negative perceptions, the plain truth is that companies of all sizes can benefit with outsourcing. Taking the first step towards business process outsourcing can be confusing. If you aren’t sure where to begin, or if outsourcing is truly for you, contact Biel’s today.