What is Business Process Outsourcing (BPO)? What is Business Process Outsourcing BPO?
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 Top BPO companies in the world's top outsourcing hubs
A wide range of BPO companies in different parts of the world provide utmost services to their Western and local clients. Many of them have even earned awards and recognitions by award-giving bodies due to their performance on both the roles they take and on their way of taking care of the employees.
Check out the top BPO companies in several outsourcing destinations below: Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies 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 Distributed Workforce? What is a distributed workforce
A distributed workforce refers to a company’s framework where employees have different options and means of working. A company might have a small in-house core team, several remote teams, and some that can render in-house and remote work. Some companies also have mobile employees that go to different locations for their tasks.
Communication is an important aspect of a distributed workforce. They should be able to communicate with each other and collaborate with the use of different tools and software for file sharing, work chat, and screen monitoring.
Collaboration tools help distributed workforce closer together digitally. By using collaborative tools like Slack, ClickUp, or Trello distributed teams are able to work together real-time. Distributed workforce vs remote workforce
Distributed workforce and remote workforce are two terms that are commonly used interchangeably.
With a distributed workforce, an organization's in-house staff is dispersed in different locations, usually away from cities, where there is a limited talent pool. This way they are able to hire skilled workers at a low price.
A distributed workforce often work on remote offices, on the field, or headquarter offices. In most cases, this kind of work model is used by companies to achieve specific goals.
Whereas remote work refers to how individuals work. Remote workers do not have to be in one specific location for them to be able to complete their tasks effectively.
Generally, distributed workforce involves discipline on how the entire organization could get things done through collaborative work. Remote work on the other hand involves discipline that is solely focused on individual work. Distributed workforce companies
Some companies operate in a distributed workforce. Most of them are Software as a Service (SaaS) companies such as Automattic, which operates 100% remotely.
Whereas, some companies have specific remote positions offered, mostly in engineering and software development.
Here we have three examples of distributed workforce companies: Buffer
Buffer is a fully distributed workforce, with over 85 employees spread across 15 countries around the globe. The company offers social media tools that allows brands to manage their social media channels effectively. Time Doctor
Time Doctor is one example of a SaaS company with a distributed workforce. The company currently has 100 staff working in 31 countries. Its co-founders Rob Rawson and Liam Martin believe in the concept that employees should be empowered to work productively no matter where their locations are. GitLab
GitLab is a Development Operations (DevOps) platform with over 2,500 contributors spread all over 65 countries. It is known as an open core company that believes in transparency and that everyone’s contribution is important to the success of the company.
A lot of businesses have executed a distributed workforce even before it became popular. This type of work model has been proven to be more cost-effective, and it speeds up the productivity, growth, and development of a company.
What is a Customer Service? What is customer service?
Customer service is a process of delivering a product or service to a customer in an efficient, accessible, cost-effective, and satisfying manner. It is creating a relationship that involves trust and builds loyalty, even after the delivery is made. Customer service is knowing how to deal with customers and understanding their needs and wants. It is finding what customers want during the entire process of delivering the product or service.
Excellent customer service is knowing when to ask the right questions to get the correct answers. It is listening wholeheartedly to your customers as if you’ve known them for a very long time. Excellent customer service is learning to adapt and provide solution to each individual client. It is discovering the right level of judgment then and there. Most importantly, in-depth knowledge of the products or services you offer is the ultimate foundation of a great customer service experience. Communication skills, creating the right environment, and being friendly aren’t enough if you don’t have in-depth knowledge of the product or service that your company offers. Outsourcing of customer service
Outsource Accelerator provides you the best customer service outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost. We have over 3,000 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, outsourcing.
What is Remote Employee? What is a remote employee?
A remote employee is someone that usually works outside the office or in a remote location. Unlike a freelancer, they are employed in a single company rendering either a fully remote work or a combination of in-house and remote. They usually work in a different city, while often some work in a different country altogether.
Some remote employees receive larger salaries and benefits than their in-house counterparts. Depending on the location, their salaries may be cheaper but sufficient to where they are located. Companies with a distributed workforce even provide allowances consumable in a coworking space or a home office. Remote employee management
Nowadays, businesses can easily hire and manage remote employees with the help of appropriate tools and software. Some websites allow businesses to hire remote employees online easily and securely. They can now train and collaborate with their remote employees through tools like Skype, Slack or Asana to name a few.