BPO is an abbreviation for Business Process Outsourcing.
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.
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.
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.