Running a business involves numerous moving parts. There are several operational processes required to keep things running smoothly every day. It may be too much for you to manage on your own. There are certain things that you must handle internally, but there are other things that could be managed by a third party to help alleviate some of your stress. The process of hiring a third party to handle certain aspects of your business is known as business process outsourcing (BPO). BPO is a common practice that can be beneficial to your business as well. In this post, we will cover the BPO meaning, its advantages and disadvantages, and what to consider when choosing from the BPO companies at your disposal.
What is BPO?
BPO is when one business pays another to manage a particular department on its behalf. Some of the most common departments that get outsourced are:
- Accounts payable/receivable
- Payroll
- Customer service
- Document management
- Digital marketing
When you outsource a service that is an essential part of the business, such as payroll, that is known as back-office outsourcing. Many people automate these services instead of outsourcing to save both time and money. When you outsource things involving the customer, such as customer service, that is known as front-office BPO.
There are a number of different places from which you can outsource your work. Offshore outsourcing refers to hiring someone from a foreign country, nearshore marketing refers to hiring a company from a neighboring country (e.g., Canada), and onshore outsourcing refers to hiring a company from your own country. Generally, offshore outsourcing is the most cost-effective option.
Examples
There is a wide range of examples of BPO. One of the first examples that probably comes to mind is outsourcing customer service. A company may choose to have a third party answer all customer service calls. The customer service representatives will be trained on the product, services, standard troubleshooting steps, and answers to common questions.
Another example would be outsourcing digital marketing. You may prefer to hire a third-party service to manage your social media accounts, website, and online reputation. Someone who is more familiar with search engine rankings and keyword optimization will write content and publish it for you while you focus on other tasks.
You may also have a company handle your payroll. This can help you avoid having to handle payroll yourself, as well as the need to hire a full payroll department.
Benefits of BPO
There are several reasons why people choose to outsource. It comes with numerous benefits. The following are some of the benefits of BPO.
Save Money
Probably the most common reason for people to outsource services is to save money. This may seem impossible since you have to pay the third party. However, you won’t need to pay people to manage the process internally. You also won’t need to pay for the space required for those additional employees and any supplies necessary.
Eliminate Errors
Most companies that offer outsourcing services also offer a guarantee on the quality of the work. Essentially, they guarantee a certain percentage of accuracy. If they don’t meet this percentage, you can hold them responsible. If you are in charge of the department, you will be responsible for all errors that occur.
Increase Focus
When you don’t have to focus on things like payroll, you can spend your time and energy on the business operations you are really good at, such as improving your product or keeping your company running efficiently.
Save Time
When running a business, you will be busy. You need to save time in every way possible. Outsourcing gives you additional time to focus on other aspects of your business, as well as your personal life.
Disadvantages of BPO
Lack of Control
When you outsource your work, you are entrusting control to another company. This means that it may not be done exactly as you want it to be. Plus, there are certain aspects you may prefer to just handle yourself.
Letting Go of Staff
If you already have a department in place that you now want to outsource, that may require you to let some people go. The work that you paid certain individuals for will be performed by a third-party company. The truth of the matter is that sometimes, as a business owner, you need to make the best decision for your business. If you don’t take care of your business, you won’t be able to provide for the employees you do have left. Knowing this often does not make the decision easier, though.
Communication Problems
If you outsource from another country where English isn’t the native language, you may encounter communication issues. The language barrier will become a serious problem if the work the third-party company needs to do involves talking to customers. Customers may not rate the quality of the service as great if they are not able to understand the person they are talking to.
Who Should Use Business Processing Outsourcing
Just about any company, from small startups to large chain retailers, can benefit from outsourcing. If you want to know if outsourcing is right for you, you should take a close look at your operational procedures and how much those operations cost you. Keep an eye out for opportunities to cut costs. If you notice any areas where you might be spending more than necessary, you are likely a good candidate for outsourcing. Additionally, if you are working nonstop to accomplish everything you need to get done in a day and are unable to spend time doing the things you love, you may be a candidate for outsourcing.
Choosing a BPO Company
To get the best experience and maximize your budget, you need to select the right BPO company. It’s essential to select a company that offers a warranty or guarantee. You also want to ensure that the company you choose thoroughly records all the work completed every day. You should verify that the company you choose will be able to accommodate your needs as your business grows while still providing value. Finally, choose a company with which you feel comfortable collaborating.
Throughout the process, you will be required to collaborate with the company to provide feedback or offer input on how tasks should be completed. You want to ensure that you work well together since you will be in constant communication. Ultimately, make sure you trust the company you are outsourcing to.
You should use everything at your disposal to make your business a success, including BPO. Contact Checkissuing to learn which departments we can help you outsource. You may be able to take a large weight off your shoulders with our help. Whether you are a small company of just yourself and a few employees or a large business, outsourcing can take you to the next level.
Last updated: September 2025