What is a BPO Company and How Does it Work?

By Nadine Flores | Aug 23, 2018

Businessbusiness outsourcingcareeremployee managementforeign companiesmanagementoffshoringOutsourcingsolutions

The BPO industry steadily grows every year, as more and more companies choose to outsource. As previously discussed, BPO companies have contributed so much to the development of countries that it has positively affected the global economy. But what does a BPO company really do and how does it work?

What does BPO stand for?

BPO is short for, Business Process Outsourcing, which is a modern solution to common staffing problems. Essentially, it is the method of hiring a team overseas to handle different tasks and render services integral to running a business or company. These could range from back office services to IT, and customer service. Outsourcing helps companies grow through monetary savings due to lower wages, and has gained popularity because of its efficiency. Though commonly perceived as an available option reserved for larger scale businesses only, the BPO industry has evolved and shifted gears throughout the past few years–enabling small and medium enterprises to partner with call centres and further develop their businesses. Through outsourcing, business owners around the world are able to access highly-skilled talents for reduced labour costs without compromising on the quality of output.

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How do I start outsourcing?

If your business is starting to show signs that you might need to outsource, you can follow these steps:

  • First, you have to identify which aspects of your company should be handled by your offshore team. Which responsibilities are straining your in-house staff? More often than not, back office work is commonly the answer but it varies depending on the nature of your business. It’s because the tasks under this branch do not directly generate revenue. Overloading your employees with duties outside their usual line of work hampers productivity and the overall quality of the output produced. Outsourcing helps eliminate these management pains by letting the offshore team do the non-revenue tasks, enabling you to focus on your core operations.
  • Second, look up potential BPO companies to partner with. If you are running a startup business, you can check out this article to know which important things should be considered when finding an outsourcing partner.
  • Third, review the terms of your contract and ask questions regarding the training, hiring, managing, and setting up your offshore staff. A lot of business owners gloss over this part and then get disappointed with the service when it was part of the contract in the first place. It’s best to clear up any doubts about your agreement and make sure you’re getting a fair deal.
  • And finally, depending on the terms of your contract, allow some time for your outsourcing partner to help you find the right people to build your staff. You also have to consider the time it takes for your team to get set-up with the right tools and equipment. Some BPO companies provide free training for the offshore team, but sometimes the company also allows you to familiarise your offshore staff with your processes and standards. After all that is done, you’re good to go!

 

Outsourcing can seem like a daunting venture, especially when you’re doing it for the first time. But when you already know the essentials, there is absolutely nothing to worry about. Despite its benefits, there are still persistent misconceptions about outsourcing that people need to be educated about. If you want to learn more about the myths surrounding the BPO industry, you can click here.

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