Business process outsourcing (BPO) is outsourcing one or more business processes to an external provider. It can be an alternative to in-house development, and it can also be used as a component of a larger business strategy.

In other words, Business Process Outsourcing, or BPO, is a crucial sourcing strategy involving the transfer of business processes from your organization to a third-party service provider. The outsourcing of these processes provides you with low-cost, high-quality, and more agile resources for the long term that can help you meet your business goals.

Business process outsourcing is a popular option for businesses seeking IT services. In fact, more than 50% of the Fortune 500 companies are using it to improve business processes and make effective use of their assets.

Categories of BPO depending on the company’s needs:

Back Office Outsourcing

Back Office Outsourcing is a business model where outsourcing companies outsource business-related activities to other companies. This way, its primary focus can be on its core business and not on dealing with back-office processes such as data entry, data analysis, order processing, quality assurance, and information technology services.

Front Office Outsourcing

While India has a superb track record of delivery excellence in back-office BPO and service outsourcing, the competitive advantage is now shifting to front office outsourcing. It has a lot of opportunities for growth and competitive differentiation in high-value areas such as marketing, sales, and customer service. We anticipate significant savings from outsourcing these functions, what we call front office BPO.


Types of BPO:

Offshore Outsourcing

Offshore outsourcing is the business practice wherein an organization takes on a foreign-based service provider for work that can either be performed in another country or handled by another business.

Nearshore Outsourcing

Nearshore outsourcing is a kind of outsourcing that takes place in a country near the one where the business processes are originally from. The goal of nearshoring is to find the best possible alternative for business processes that is still close enough to reach easily. It can reduce costs due to shorter travel times and more efficient communication.

Onshore Outsourcing

Onshore outsourcing is a private business arrangement between two businesses in the same country. The nature of the agreement is to reduce costs and increase profits while improving the service quality.

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