Business process outsourcing (BPO)

What does BPO stand for?

BPO is an abbreviation for Business Process Outsourcing.

What is a BPO?

Business process outsourcing is the process of assigning certain business functions to a party outside the company. While customer service is the most commonly outsourced process, companies also outsource accounting, IT services, and human resource management among others.

What are the benefits of BPO?

Organizations contract a BPO for a variety of reasons including:

Cost efficiency: BPOs significantly reduce overhead costs for an organization, handling any technology infrastructure as well as maintaining the headcount.

Operational efficiency: BPO service providers are experienced in their fields of work, and expertise can quickly be spun up to handle complex queries.

Rapid global scale: When an organization expands operations into a new region, BPOs can are equipped to handle compliance and other legal regulations, provide native market knowledge, local law expertise, and fluency in a foreign language.

When should you outsource customer support to BPO?

BPOs are often considered when a contact center is looking to:

Lower costs: Outsourcing helps reduce overhead costs and allows organizations to invest other areas, like growth and R&D.

Grow faster: As a company quick grows, contracting a BPO focuses on the core aspects and supports the expansion by providing specialized services and solutions.

Beat competition: Engaging with an outsourced partner who’s specialization and capacity to innovate and offer supporting services and solutions, can accelerate growth for the company.