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Guest post by: Ivana Lewis Become an Author

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We are all aware of the fact that business process outsourcing refers to allocation of peripheral work. In this process, business activities are transferred to a third party service provider. These days, several countries choose to outsource labor-intensive, non-strategic work to different outsourcing companies across the world. Well, the entire business process outsourcing work can be categorized into 2 major categories to help businesses to get the right solution. These include:

Front office work:

All types of customer-related services like tech support and marketing are carried out in this category. Companies selecting to outsource front office work get to enjoy reduced cost and improved services, making them gain from the given processes.

Back Office work:

This essentially includes the internal business services like purchasing and billing. A variety of back office outsourcing services are put on offer by call center units to help companies save costs and concentrate more on the core competencies.

Why BPO?

Unlike the ASP or application service provider, the use of business process outsourcing also means that the total amount of risk will get transferred to the organization, operating the process basics on behalf of the ‘outsourcer’. It is BPO that includes the terms of admission to most innovative features and functionality offered or served up through the use of advanced software, catered via the web browser.

The BPO set ups are usually categorized into near-shore companies, onshore companies and offshore companies. The offshore companies are situated overseas. Most offshore companies growing popular are situated in China, Pakistan, India and Philippines, etc.

Onshore companies refer to set-ups based in the same country. These companies are called the onshore companies. For instance, an organization based in the United Kingdom outsources technical support to an UK based call center. On the other hand, near shore business process outsourcing companies would mean companies based close to the nation. Take for example, an organization based in Canada offering service to any United States based company.

A majority of BPO companies are situated overseas, engaged in offering a range of call center services, email answering services and telemarketing. These are called offshore companies, adding efficiency to diverse business activities.

Advantages of outsourcing companies:

24/7 Business Operations: Most business process outsourcing companies operate 24/7 all through the year. This is one of the major benefits of having BPO services.

Reduced Cost: One of the most major factors for every business is cost reduction. The offshore outsourcing organizations function at a low cost. A regular customer care center in the United States charge $15 to $20 per hour for offering customer service or technical support. On the other hand, call center set-ups in India will charge around $8 to $12 in an hour for the same.

Quality service: Most business process outsourcing (BPO) companies focus on offering high-quality services. These service providers maintain quality and data security measures initiating certain parameters like 6 Sigma, BS 7799, ISO and others. These are some set parameters implemented to preserve the high-quality standards.

According to experts, BPO companies have developed as one of the highest growing service centers engaged in opening more avenues for other sectors.

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