What Is Bpo? Business Process Outsourcing Meaning and Examples

Running a business involves a lot of moving parts. There are a number of different operational processes required to keep things running smoothly every day. It can be too much for you to manage yourself. 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, and it may be beneficial to your business as well. In this post, we will cover 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 business to manage a particular department for them. 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 where 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. 


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, normal troubleshooting steps, answers to common questions, etc.
Another example would be outsourcing digital marketing. You may prefer to hire a third party to manage your social media accounts, your website and your 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 do the payroll yourself as well as having to hire a whole payroll department. 
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Benefits of BPO

There are many reasons for people to outsource. It comes with a lot of 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 yourself, you will be the one 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 you possibly can. Outsourcing gives you additional time to focus on the other aspects of your business as well as your home life. 

Disadvantages of BPO

Lack of Control

When you outsource your work, you are putting control into another company’s hands. This means that it may not get done exactly how you want it to be done. 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 people for will be done by the 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 end up having 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

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 see any areas where you might be spending a little more than you have to, you are probably a good candidate for outsourcing. Also, if you are working nonstop to accomplish everything you need to get done in the day and not able to spend time doing the things you love, you are a candidate for outsourcing.

Choosing a BPO Company

To get the best experience and the most out of your budget, you need to pick the right BPO company. It’s important to choose a company that offers a guarantee. You also want to ensure that the company you go with thoroughly records all of 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, you need to pick a company you feel comfortable collaborating with. Throughout the process, you will be required to work with the company to give them feedback or provide your input on how something should be done. 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 of 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.