Availability of Experienced Professionals
Business process outsourcing
Ability to Focus on Core Business
Excellent Source of Customer Feedback
Access to the Latest Updated Technologies
Excellent Employment Opportunity
Business process outsourcing, or BPO, is a business practice in which one organization hires another company to perform a task (i.e., process) that the hiring organization requires for its own business to successfully operate.
However, organizations in other industries adopted the practice through the years. Now, the use of BPO has expanded so much that organizations of all kinds -- for-profit businesses, nonprofits, and even government offices and agencies -- contract with BPO service providers in the United States, throughout North America and across the world to perform numerous processes.
6 Advantages of the BPO Industry
BPO has its roots in the manufacturing industry, with manufacturers hiring other companies to handle specific processes, such as parts of their supply chains, that were unrelated to the core competencies required to make their end products.
According to the BPO Services Global Industry Almanac 2013-2022 released in May 2018, the overall BPO Services sector generated revenues of $144.9 billion in 2017.
Organizations can outsource a range of back-office functions (also referred to as internal business functions) including accounting, IT services, human resources (HR), quality assurance (QA) and payment processing.
What BPO is used for organizations engage in business process outsourcing for two main areas of work: back-office functions and front-office functions.
Similarly, they can outsource various front-office functions, such as customer relation services, marketing and sales.
Organizations can also outsource specific functions (i.e., payroll) in those areas in addition to outsourcing an entire functional area (i.e., human resources).
The reason for companies to outsource their business processes is pretty simple. Business Process Outsourcing enables business owners to reduce the burden of work and concentrate on other core aspects of their operation. Outsourcing to a third-party company, which is already well-established and has the relevant experience in providing services, is a much more convenient option. Outsourcing your business processes comes with a series of advantages. Some of those include: