What is Business Process Outsourcing (BPO)? What is Business Process Outsourcing?
Business Process Outsourcing (BPO) is the engagement of services from a third-party provider. BPO uses various technology-enabled services to hasten the delivery of services. The business activities could be back-office such as, but not limited to, payroll, accounting, human resources, or front office jobs like customer service, sales, and marketing, etc. In the case of content providers, these business activities could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business activities use their time on core services and competencies. With this shift in focus, companies improve their current processes that may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies. Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. How does Business Process Outsourcing work?
When a business engages an external specialist to manage and operate some of its internal processes, it's referred to as business process outsourcing. Such ‘processes’ include customer service, accounting and finance, or sales. It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.
Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing. What are the benefits of business process outsourcing?
There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include: Cost savings: significant savings of up to 70%, leveraging the lower global salaries Global market: access to a bigger employment pool of talent Global presence: having operational across the globe increases trade opportunities Flexible workforce: reduces internal local labour and employment compliance obligations Leverage skill: leveraging the skills of other specialist companies Focus: enables the client company to focus on their core functions
Business process outsourcing examples
The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing many millions of people worldwide. Some examples include: Big enterprise
Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber Medium-size businesses
A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines. Small business and entrepreneur
It is common for small business owners to have a Virtual Assistant (VA) working for hem full time, remotely from the Philippines. What are the different types of BPO?
The type of business process outsourcing can be characterised by their specialisation, location, and size. Generalist or specialist BPOs
Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalist, in that they offer a full range of professional services, although some specialise in certain verticals (ie accounting, or animation). Location
Business process outsourcing typically operates form developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages. Size of BPO
The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people. Functions of business process outsourcing
Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include: Finance and accounting: operational, technical and specialist functions Healthcare: various functions of the backend of the healthcare and health-insurance industries Creative and content: everything from post-production of Hollywood movies to newspaper and website content Tech, IT and development: network management, web and app development and maintenance Sales & customer support: ongoing sales and customer operational support and delivery Marketing: ongoing marketing, communication and branding activities Talent and HR: externalising the management of company HR, recruitment and compliance Administration: general business administration and operational activities Business Process Outsourcing (BPO) services
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 4,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, business process outsourcing.
What is a Startup? What is a startup?
Startups are companies that are founded by entrepreneurs with the goal of growing into a large-scale business. A startup must not only offer a product that has wide market demand but will also be expected to develop a scalable business model. As opposed to other entrepreneurship which may or may not grow larger than a sole proprietorship, startups from the get-go are expected to have accelerated growth, sometimes prioritizing growth over the revenue stream.
Because of the pressure to grow, most startups adopt an experimental methodology, often creating small projects to test assumptions and predictions to better understand who their market is and what is the demand for their product. As such, startups require excellent customer support skills, and technical development skills to both gather and interpret information and iterate on the product to better match the customer need. Ultimately, a startup relies on confidence borne from experience and data. Decisions must be made with confidence such that even bad decisions are processed and learned from. Startup outsourcing
Decisions made in confidence are not based on gut-feel or available resources but are made knowing the capabilities of your teams and with an understanding of the market-dynamics. If the teams are unable to deliver, or the investment made is large with little to no understanding of the risks involved, startups risk damaging their credibility and their ability to attract funding. Having experienced and capable teams with managers able to interpret trends and discern risks are major confidence builders that can help startups navigate the path to growth.
Outsource Accelerator specializes in helping small & medium sized enterprizes (SMEs), with 2-500 employees, typically based in the high-cost English-speaking world. We are the experts in transforming these businesses with startup outsourcing.
What is a Virtual Assistant? What is a virtual assistant (VA)?
Virtual Assistants (or, VA) are professionals that work remotely with your organization in either a full-time or part-time capacity to handle repetitive work, specialized work, or one-off tasks. They can handle any type of work, ranging from simple data-entry type tasks to tasks requiring specialized knowledge and experience.
Virtual assistants can range from newly graduates looking for a full-time career, to retired industry veterans working a side-job by marketing their professional skills. They are a great option for companies that need expertise for a specific project, or who only need that expertise for a specific part of the day.
Other times, companies leverage virtual assistants to take the load off their regular employees so they can handle more high-value or critical work. Virtual assistant services
Virtual assistants can do a lot for a business. For one, many of them have primary experiences in customer services and administrative roles. This makes them a great alternative to an in-house secretary without the worries of additional office space and resources needed for their work.
Many VAs are also licensed to do bookkeeping and accounting tasks. They are great in handling books of accounts through online tools such as Quickbooks and Xero. They can also handle marketing and design roles to help in generating leads and growing the audience of a website. Outsource virtual assistant (VA)
Anyone can become a VA so long as they have a good internet connection and an excellent work ethic. With this, companies and business owners can find virtual assistants with a range of interests and skills.
Outsource Accelerator provides you access to professional outsourcing companies from the Philippines starting from $6 per hour, where you can save up-to 70% on staffing cost. We make it easier for clients to learn about, and engage with outsourcing virtual assistants.
What is a Freelancer? What is a freelancer?
A freelancer is often hired for a particular job or fixed project who has the freedom to work flexible hours on these projects. Being self-employed, it is common for freelancers to handle multiple clients at any given time.
A freelancer can specialize in various project-based jobs, such as writing, graphic designing, web developing, digital marketing, and a lot more. Freelancers work remotely with usually flexible working hours, as long as they are able to meet client deadlines. One disadvantage of being a freelancer is having no certain mandatory benefits shouldered by an employer.
Freelancers can be a great addition to an existing workforce for businesses who look for cost-effective service and high-quality work. Freelancers are perfect for small to medium business owners who are looking for excellent outsource partners who can work independently and can be productive under minimum supervision. Freelancing and outsourcing
Outsource Accelerator specializes in helping small & medium sized enterprises (SMEs), with 2-500 employees, typically based in the high-cost English-speaking world. We are the experts in transforming these businesses with outsourcing.