Introduction to Business Process Outsourcing

BPO is referred to as a practice to process out and contract the external level service provider for specific work and operations. The main services included in BPO are accounting, data recording, social media, telemarketing, payroll, customer support and much more. BPO is mainly divided into sectors that are front office & back office. Services of back-office contain s process of internal business like purchasing or billing. Instead of that, services of the front office include contracting customers for a company like providing them technical supports. BPO combines both the services and works appropriately for customer satisfaction. This industry is mainly divided into the 3 sectors that can be referred to as offshore vendors, another one is near-shore vendors or the last one is onshore vendors.     
A requirement of Processes of Business Outsource

There are many reasons for outsourcing by American businesses, as the people believe in tax break business that can be related to overseas outsourcing shipping. Companies of the US get benefit from the outsourcing operations having a less income tax due to the pay rate of host countries. The main reasons for BPO or outsourcing are:

  1. It concentrates on the main function.
  2. Decrease house labour cost
  3. Enable specific flexibility
  4. It helps in achieving better outcomes for non-core functions.
  5. Expand out the global existing
  6. Improve out the efficiency or speed of operations

Services support by Outsourcing Companies

Providers of BPO support various services which fill out multiple gaps within organizations. The most common included industries are energy, telecom, healthcare, business services, retailers and ecommerce, automotive, banking, capacity solutions, utility companies, supply chain and management of an asset.

  1. LPO: LPO is mainly standing for the legal process outsourcing which seems to be a part of the KPO having a high range of legal networks.
  2. KPO: LPO is mainly stood for Knowledge process outsourcing. The expertise of KPO performs various operations.
  3. ITES-BPO: This is a BPO firm that leverages over the data network to deliver various services. This includes a service desk analyst, IT analyst.
  4. RPO: RPO mainly stands for Research process outsourcing which is a subset of KPO. RPO is specialized in analytic functions & research.

Related risks

Various cultural entities may constitute a risk for a company of contracting. These risks can be defined as:

  1. Security: IN sector of outsourcing, the most common risk is of privacy and face communication because security helps in manage the personal information of the user and full fill all the user requirements. Potentially breaches or data breaches disclose all the threats with hacking prevalence.
  2.  Issues related to communication: In these companies, language barriers are the most common limitations during hiring experts for service providers. In addition to this, the communication barrier is also a problem for third-party vendors.
  3. Understanding the cost of the service: Companies that employ the BPO vendors have been underestimating by the running cost, especially in case of contract registration or in upgrades.
  4. Some common risks related to outsourcing can be defined as quality control, breaches related to data, restoration of operation, political instability, technology changes, hacking exposure, strategic alignment maintenance.

Future of BPO

BPO's future is similar to the automation industry. Expertise will move towards the RPA which helps in change the status of BPO. BPO emerge several technologies like social media, AI, machine learning which provide accelerate growth. BPO provides supporting improvements in managing the tools of social media which remain continue in the future. Investment in the field of cloud computing provides a mature platform to expertise. Further, BPO’s will interestingly invest in workforce diversifying. Currently, BPO's are under competition and generate alternatives for lower-cost software automation. To lose the workers to automation & AI, leaders of the business decide to educate expertise to meet the demands for promoting skilled positions. There is a requirement for BPO's that they have to be transparent so that it built trust. However, the practitioner's believed that changes in political tides do not affect the KPO's and BPO's. 

How to select the vendor for Business Outsourcing

The selection of vendors is not seemed to be an easy task. So, there is a requirement to change the priority settings and place effective agreement. Experts suggest an extensive and formal process that helps in attaining the appropriate outsourcing experience. Common tasks have been listed below for a selection of vendors that can be elaborate as:

  1. Define all the requirements & potential vendor reviews that will start with defining the key factors of stakeholders & then engage them in the beginning process. 
  2. Put proposal of request & sourcing to vendors, to evaluate the main key factors of BPO provider. In this, the model of service management defining is necessary for the company.
  3. Select the appropriate vendor for the company by evaluating effective proposals and starting with analyzing all changes that result in a third party contract.
  4. Contact negotiation is a key step in hiring a third-party provider for services. In this, both of the parties can reach up to the service parameters.
  5. Transit appropriate workflow and processes out the selection process which is a go step. At this stage, ensure the business having an internally open communication as well as a team of a service provider.
  6. Set proper relationship management which is necessary for governing the selection. Monitoring the performance is a key factor that ensures better outcomes for the company.   

Manage workflows in smart sheets

Ensure about the BPO quality and its performance is too challenging. But to manage the vendors, there is a requirement of process out tools and several processes. By using appropriate tools, communication has been improved out, accountability manages and the risk factor is reduced down. The best solution is using a Smart sheet that is based on a SaaS platform which helps in managing the collaborative work. This is commonly designed to increase the agility of work and to maintain the collaboration with providing a strong platform to an organization. Smart sheets integrate with tools and automate the process of sales discount, HR hiring and much more.


Published by Syed Mohammad Anwer