Outsourced services are growing in popularity around the world. Global services were valued at 92.5 billion dollars in 2019, a figure that is continually increasing. Why is business process outsourcing becoming increasingly popular? Because it is a cost-effective way to cover talent gaps while also allowing for flexibility and global expansion.
Businesses are leveraging the expertise and financial benefits of outsourcing both front-office and back-office procedures as an alternative to hiring contingent staff in-house. Businesses can select which services to outsource and how to save costs by filling sp by understanding the different types of Business Process Outsourcing Services (BPO).
What is the definition of BPO (Business Process Outsourcing)?
The activity of outsourcing an external, third-party vendor’s services, business-related operations, or labor processes is known as BPO. BPO is a broad word that encompasses a variety of subcategories that describe the location and function of the services offered. The following are some of the subcategories:
- Offshore BPO
- Nearshore BPO
- Onshore/Domestic BPO
- Front-Office BPO
- Back-Office BPO
Supply Chain and Services are two types of business process outsourcing.
Back-office business process outsourcing entails contracting non-customer-facing services. IT, accounting, business process automation, human resources, quality assurance, and other services are among them. IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process Outsourcing (KPO), such as outsourcing an individual who understands and can implement/manage a certain program, have all evolved as subtypes of BPO. Businesses can focus on their main mission instead of time-consuming and inefficient tasks by outsourcing these tasks.
BPO in the vicinity
The act of hiring the services of vendors in nations that are geographically closer is known as nearshore business process outsourcing. This might encompass Canada and Mexico, as well as Central America, for US corporations. When specialized abilities are available at a reduced cost in a nearby country, this type of outsourcing is used, but certain criteria, such as timezones and language proficiency, must be considered.
Domestic outsourcing is exactly what it sounds like: providing and receiving services within a country’s borders. To put it another way, a vendor in one city, state, or province can be hired to deliver services to a company in another city, state, or province. This might be caused by a variety of causes, such as the availability of specialized talents in specific places or disparities in rates and expenses between regions.
Taking Care of Outsourced Vendors
While recruiting and managing outsourced suppliers can be done in-house, partnering with a Managed Service Provider (MSP) as part of your workforce management strategy can make the process go more smoothly. From request through payment, HCMWorks is a neutral third-party that delivers expert consultancy services to expedite, simplify, and manage the contingent workforce supply chain. Contact one of our consultants to learn more about our services.
The world of business is changing at a pace. This has not only opened the market for new players but also introduced the idea of call center outsourcing. Get in the race with your competitors with a better grip to holds.