What is BPO (Business Process Outsourcing)?

What is BPO (Business Process Outsourcing)?

Business Process Outsourcing is a method in which a company makes a deal with a third-party organization for the completion of a specific task or an important business function. BPO can include outsourcing back-office functions, as well as front-office functions. 

Define Business Process Outsourcing 

Business Process Outsourcing, or BPO, is like hiring someone professional to take care of your work, while at that time the company can focus on its main work. This outsourcing arrangement enables the company to concentrate on its core competencies, while the service provider takes the responsibility for efficiently managing the side tasks. 

Understanding BPO 

Imagine a scenario, where you are a college student and you are provided with a bunch of assignments to complete within 24 hours, but you also have an important exam tomorrow. Now, in this case, both the tasks need to be done, but the exam holds significantly more value. So in this case, you give your assignment work to your little brother/sister, who is an excellent student, and he agrees over a pizza, while you go and prepare for the test. 

In the corporate world, BPO is also like this. Companies have lots of work to do, like answering important phone calls, doing paperwork, enriching business relations, and much more. So, in such cases, they hire a third-party individual or company to work for them at a certain stipend. 

Special Considerations 

Before getting further into BPO, there are some important issues to keep in mind: 

  • Choosing the Right third-party organization

    Selecting the right BPO service provider is essential. Look for an enterprise with an established profile and one that has a clear understanding and knowledge of your enterprise. 

  • Data Security

    If your BPO includes coping with sensitive information related to the company, ensure that there is a proper security firewall around the data present 

  • Cost vs. Quality

    BPO can turn out to be cost-ineffective, however, it is important to have a check on the quality of work too. 

  • Communication

    Establish clear communication with your BPO, to prevent any problem from occurring after the end of the task. Communication is the key to effective collaboration.  

The Attraction/Advantages of BPO 

Businesses of all sizes are adopting BPO due to its following advantages: 

  1. Cost Efficiency

    BPO can reduce operational costs since it involves including members and organizations from lower-cost countries. 

  2. Bring more focus

    By outsourcing the side work and obligations, your company can focus more on its main activities and strategic tasks, leading to overall development. 

  3. Saves Time

    Outsourcing responsibilities and tasks free up time for your company or organization to concentrate on more prior tasks. 

  4. Increases sales

    Outsourcing tasks allow the company to generate more sales since there is no delay in providing services by the firm or organization.  

  5. Better Global Reach

    BPO enables companies to access a worldwide global environment, which also helps in increasing the reach of the company. 

  6. Market expansion

    BPO can support businesses by allowing them to enter new markets by providing customer insights reportedly. 

Some Disadvantages of BPO 

While BPO provides us with several benefits, it also includes some drawbacks and disadvantages: 

  1. Quality Concerns

    If not selected cautiously, a BPO partner won’t deliver the required level or superior quality results, leading to customer dissatisfaction. 

  2. Confidentiality Risks

    Sharing sensitive information related to the company with a third-party organization or individual can promote to threats and dangers, if precautions are not taken effectively. 

  3. Different time zone issues

    Different time zones and language barriers can lead to problems related to work shifts and communication, affecting proper coordination. 


In the end, it can be concluded that Business Process Outsourcing (BPO) can be a game-changer for organizations seeking to optimize their operations, reduce charges, and increase efficiency. However, careful consideration and choice of a BPO associate are necessary for better achievement. If practiced properly, BPO can be the best method for your success in this modern era. 

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