The outsourcing industry has been on an upward trend ever since its conception. Through time, business process outsourcing (BPO) companies have picked up on standards that work best for them.
BPO models give businesses different ways to handle certain operations and projects, and exploring these models gives companies an edge in the competition.
Various BPO models have emerged throughout the history of outsourcing, and we’ll discuss each of them below.
Business Process Outsourcing (BPO) companies: What are they?
Most commonly known as BPO companies, these organizations help businesses become more efficient and productive. From internal services such as human resources and payroll to external-facing roles like customer service and acquisition, BPO agencies can lend a hand.
Outsourcing means delegating tasks to third-party service providers so that the client company can focus on things that really matter.
BPO companies embody the goals that their clients have: to become more efficient, more productive, and more competitive.
The major difference between call centers and BPOs
It’s no surprise that some people confuse business process outsourcing and call centers. Some even use these terms interchangeably—but this misconception can easily be eradicated.
For starters, call centers are quite literally what it says on the tin. It’s a contact point hub wherein phone calls, and nothing else, go through to its agents.
On the other hand, business process outsourcing (BPO) companies do so much more than calls. They also handle a variety of other services—sales and marketing, HR, payroll, IT, and so much more.
Understanding what BPO models are
BPO models summarize how an outsourcing company operates and what kinds of services it offers its clients. These models are based on the goals, needs, and location of clients.
Different BPO models can apply to different models, and it’s possible to stack them together to provide a unique experience that will meet the client’s needs. That said, BPO as a service is very flexible and can address almost every client demand.
The BPO models to look out for in 2023
To better understand how BPOs work, here are the most promising BPO models to watch out for in the coming year.
As the name suggests, this BPO model takes outsourcing services across continents.
BPO companies often build an office in top outsourcing destinations around the world and take root there. They open up their doors to working professionals looking for a stable career in the outsourcing industry.
Fun fact: In 1999, Sykes was the first BPO company to ever grace the Philippines.
This BPO model can be seen mostly utilized by the retail and e-commerce sector.
The months following August are the most crucial time of the year. Everyone has holidays to plan for, and the public demand for products and services often spike during these months.
They’ve got Thanksgiving, Black Friday, Halloween, Christmas, and the New Year. With these festivities and holidays, people tend to avail more products and services.
Hence, businesses also turn to BPOs to be able to respond to the surge while still keeping up with core activities and customer service.
The opposite of outsourcing is insourcing. This BPO model refers to delegating tasks and projects to people that are already employed in the company.
This structure allows companies to be efficient and productive without any outside help.
Ever been on a part-time job? Seat leasing may be familiar to you.
For instance, some clients only need their taxes ready for audit on a certain date. They would come to an external service provider for office or desk space as they hirer accountants and bookkeepers for a certain period.
This BPO model takes companies to different lands—literally.
Offshore outsourcing allows organizations to take their operations to other countries to branch off. This allows foreign businesses to transplant themselves into the local economy of the country they’ve decided to land in.
Companies with multiple branches and offices in the world are the most notable examples of offshoring in action.
As the name suggests, nearshoring is a subsector of offshoring. The concept of nearshoring is generally similar to offshoring, but their main difference is geographical location.
Nearshoring allows companies to move their operations to neighboring countries. One example of this is US-based companies building offices in Mexico and hiring locals to ensure operational success.
How outsourcing brings opportunities closer to people
Whatever the BPO model, outsourcing benefits companies and their subsidiaries. But were you aware that it also brings opportunities for working professionals?
Take the BPO industry in the Philippines for example—there are cities in the Philippines that are considered to be a hotspot for outsourcing companies to land on. This brings never-before-explored work opportunities for the local workforce.