BPO Meaning (Business Process Outsourcing)

Business process outsourcing is the order of the day and is one of the most rapidly growing fields. This is a broad area and if you are seeking to develop your knowledge, here is a complete overview of outsourcing, its responsibilities and activities.

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Business Process Outsourcing (BPO meaning)

Business Process Outsourcing defines the contracting of specific responsibilities and operations for a particular business process to some third party. If taken generally, BPO is a task that a company may need but is not dependent on it totally. This is done to save costs.

An overview of BPO

Since BPO is in demand nowadays, it covers a wide area. There is a lot to discuss and know about it. So, read the last word and know what BPO is all about.

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Business Process Outsourcing Services

Let’s break it down into two main categories for a proper explanation. One is back office outsourcing and another is front office outsourcing.

Back Office Outsourcing

Back office outsourcing includes different tasks like data management, data entry, payment processing, surveys, accounting support and quality assurance. These back-office tasks are essential to core business processes. This helps in running businesses smoothly.

Front Office Outsourcing

This includes specific services like email, telephonic conversations, fax and many other forms of interaction with consumers.

Companies will basically outsource business process outsourcing services in customer support or service, market research, inbound and outbound sales, technical support and appointment scheduling.

BPO Business Process Outsourcing Solutions and Options

The business process outsourcing services can be easily contracted in nearby countries as well as outside countries.

Onshore Outsourcing

Onshore outsourcing is also termed as domestic outsourcing. It is a method of achieving services from someone outside the company but a person within the same country.


Offshore Outsourcing

It is a kind of business process outsourcing (BPO) which exports Information technology work from United Nations and other developed countries to areas across the world where you will see both political stability and reduced labor costs or even tax savings.

Nearshore Outsourcing

Nearshore outsourcing services are the services which are performed on work done by companies or contractors in neighboring countries rather than people in your own country.

Advantages of Business Process Outsourcing

This process offers a variety of benefits.

Attention towards your Business

Most of the entrepreneurs that seek business process outsourcing services are in search to expand their recent products as well as services. But somehow they do not have any time or resources to make it happen. In this context, BPO services can offer a perfect opportunity to the organizations so as to free up the time and pay attention to their core offers.

Improved Productivity

For most of the part, BPO companies have worked on their craft. They have mastered the processes and are working with best resources and technology on it. With this, they can simply fetch most favorable performance and productivity out of the employees.

Lesser Costs

In case you have jumped on the requirement for BPO services, there are chances that you are looking forward to continuing building up the integrity of your business. In this situation, BPO can provide a financial strategy to the organization. This cuts the cost without sacrificing quality.

Power to Reassign Resources

If you have made up your mind to jump to BPO services, you are likely to have resources working in the printing, mail, rebate fulfillment, check writing and many other paper-based tasks. When you choose BPO service provider you can simply transfer your resources. Additionally, you cut on the task, whether you use warehouse space or an office space.

Open to Technology Resources and state of the art Process

There are a lot of advantages of outsourcing specific services to a BPO company. Among all those benefits is you are known in the right hands. BPO companies are regularly working on upgrading their employees and facilities. They are doing it by emphasizing on latest technologies, practices, and assets in order to run an improved machine. Events may be the great method to build local, national and international ventures and eventually, build up tech communities on the way.

Meaning of KPO

Hands with the pen drawing a business diagram for KPO (Knowledge process outsourcing)
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With BPO comes KPO (knowledge process outsourcing). This is, in fact, a subset of BPO. In KPO comes the outsourcing of core functions which may or may not bring monetary benefits to the parent company but it will definitely help in adding value to the services. The processes that are outsourced to KPOs are basically knowledge-based and specialized in comparison to BPOs. Just like BPOs, there are many significant services included in KPOs like R&D, legal services, biotechnology, insurance market services, design and animation, and more. These are some common activities that are outsourced to KPOs. Legal Process Outsourcing is a special kind of KPO which deals with legal services.

Difference between KPOs and BPOs

Business process outsourcing accounts for the work outsourced to a third party in order to save money. KPO is a subset of BPO. This includes more knowledge-based and specialized work. In addition to that, there are more nuanced and involved reasons that a company may get engaged in KPO.

Since both Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) are grounding their feet in the industry, it is important to know in detail about both of them. Here is the difference between BPO and KPO.

BPO is basically the outsourcing of work to some third party service provider in order to save money while KPO is a subset of BPO only. KPO include more knowledge-based and specialized work. In addition to this, there are many reasons that a company may choose KPO services over BPO.

BPO services are generally divided into two sections. One is horizontal and another is vertical services.

Types of BPO

A shelf with different bottles and containers, which represents a variety of BPO types

Horizontal BPO

Horizontal BPO include function centered outsourcing. Some of the examples of outsourcing are: payroll processing, procurement, facility management and related functions. There are many companies that provide core horizontal BPO services like benefits administration, HR, tax solutions, etc.

Vertical BPO

Vertical BPO pays attention to demonstrating different areas of function in a confined number of industry domains. Healthcare, manufacturing, financial services and retail are some of the examples of vertical BPO domains.

BPO horizontals

BPO horizontals are specific function and cloud spread across various industry domains. Our business process outsourcing solutions.

BPO Verticals

The BPO verticals encounter different functional services in particular industry domains like retail, manufacturing, healthcare and financial services.

Advantages and Disadvantage of BPO

Several clocks representing different time zones which is one of advantages and disadvantages of BPO in business outsourcing
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The top benefits of BPO are saved money and enhanced time to focus on the key business. Some other advantages include:

  • Flexibility to pick on the most relevant services for the operations of a company.
  • Accurate and quick reporting
  • Efficiencies and speed of outsourced business processes are improved
  • Organizations making use of these services have an approach to the latest technology
  • Save on resources like training and staffing
  • Several Disadvantages of outsourcing business processes involve:

Data Privacy Breaches

  • Extra dependence on service providers
  • Underestimating the running costs of services
  • Communication problem which may delay project closing
  • The most common services offered in Business Processing are

Website SEO/ Design

There are many professional BPO companies offering systematic SEO services and website design for bigger companies working in the health sector, legal sectors and medical sectors. These services should cover every phase of search engine optimization procedures and web designing. This is really beneficial for the outsourcing companies when they wish to build and maintain search engine friendly websites in order to attract more clients.

Data Entry Services

Managing a huge log of data on daily basis is one of the important things for any large firm. It brings the data entry services into existence. Such BPO companies specialize in helping the larger firms to streamline and maintain their data without any trouble. This assists them in attending to core competencies and perks up the complete business efficiency. The data basically relate to form processing, surveys and document conversion, book and image conversions, etc.

Medical Coding and Billing

There are medical claims and bills that may lead to rejection of claims. As a consequence, it affects the cash flow of medical facilities in a great way. An efficient and reliable outsourcing firm can assist in submitting proper reputation of a firm. From claim processing to following up and submissions these BPO firms run all the tasks with remarkable efficiency.

Transcription Services

This offers the requirements of legal, medical and business firms. The trained professionals transcribe the dictations offered and it needs exceptional efficiency to offer error-free transcripts within the strict deadlines.

Wrapping UP

Business process outsourcing services apart from taking the load off the heads of the larger companies offer better data security. This is something important for maintaining and striving for core business quality and services. So, transcription and data processing through professionals is the best way to go!
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What is definition of BPO?

Business Process Outsourcing (BPO) is a subset of outsourcing that involves contracting the operations and responsibilities for a particular business process to a third-party service provider.

What is BPO in simple words?

Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party provider. BPO services include payroll, human resources (HR), accounting and customer/call center relations. BPO is also known as Information Technology Enabled Services (ITES).

What are the BPO companies?

BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact centre (customer care) services.

What are the different types of outsourcing?

There are different types of outsourcing services that businesses can contract with an outsourcing company. Basically, outsourcing services are grouped into four; Professional service. Manufacturing service.

What is BPO example?

These include services like finance and accounting, legal process outsourcing, product development and design, healthcare services amongst others. Some examples of BPO companies which provides services to high-end companies are: Genpact India Pvt. Ltd. WNS Global Services Ltd. Tata Consultancy Services BPO.

What are BPO jobs?

BPO is also known as information technology enabled services .Business process outsourcing (BPO) is the contracting of non-primary business activities and functions to a third-party provider. BPO services include payroll, human resources (HR), accounting and customer/call center relations.


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BPO Meaning and Types of BPO (Business Process Outsourcing)
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BPO Meaning and Types of BPO (Business Process Outsourcing)
Business Process Outsourcing defines the contracting of specific responsibilities and operations for a particular business process to some third party. If taken generally, BPO is a task that a company may need but is not dependent on it totally. This is done to save costs. Read more ...
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SITO: Software & IT Outsourcing
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