Efficiency, good management, innovative processes, and excellent product representation – all these factors are crucial for a successful business. With the help of modern technology and effective strategies, you can prove yours too. 

But how do we utilize them to create the maximum profits? Business Process Outsourcing (BPO) can help you to solve all industry-related blockages. As per the survey, the global BPO market size will be worth $525.2 billion by 2030. Also, 59% of businesses outsource to cut costs and 26% of small businesses outsource to get expert help. 

Do you want to hire one to enrich your business sales? In this note, we’ve highlighted different types of BPO services and functions, so that you can pick one that suits your business needs.

Without further ado, let’s get started by understanding what BPO stands for in a business in the next section!

What Does BPO Stand for in Business?

Business Process Outsourcing (BPO) is a business process where a company hires an external service provider to manage one or more business-related functions. For example, organizations can outsource digital marketing, customer service, payroll, human resources (HR), and others. 

In short, 

• BPO is a type of outsourcing wherein an organization contracts with a firm or service provider to handle different business process services tasks. 
• BPO aims to reduce costs, increase efficiency, and improve business sales performance.
• Allow businesses to focus on their core competencies and increase productivity. 

Thinking about what is a BPO company, or what is a BPO industry? It represents those companies that provide different types of business process services. Now, it’s time to go through BPO service types. 

What are The Different Types of BPO Services?

As per statistics, 83% of small-scale businesses plan to keep or increase outsourced BPO services. Originally, consumer businesses preferred BPO services to cut down costs. Now all sizes of industries include outsourcing in their business model. 

But what are the types of BPO services? Let’s check out the next section for more details!

3 Different Types of BPO Based on Location

Depending on the company’s or vendor’s location there are 3 main categories of BPO customer service such as:

1. Offshore business process outsourcing (BPO)

Offshore BPO outsourcing – when an organization or company outsources vendors from a different continent, or time zone. For example, you run an eCommerce company in the USA but outsource from a BPO company in Jamaica and the Philippines. With this BPO offshore outsourcing, you enjoy lower-rate services by reducing overhead costs and saving tax. 

Curious to explore more and its key roles? A glimpse of offshore BPO is given below:

• Offshore BPO offers qualified talent, political stability, available resources, and more.
• A better option for global expansion and to get access to better technology. 
• Offshore BPO’s popular sectors are KPO, finance & accounting, R&D, data analysis, customer support, sales & marketing, and more. 

2. Nearshore business process outsourcing (BPO)

Nearshore BPO services – when you hire a vendor or plan to outsource from your neighboring country (same language and culture). That means it represents the same geographical location services. For example, US companies can outsource or hire BPO service providers from Jamaica, Mexico, Canada, or others. 

Key benefits of nearshore BPO are:

• Easier and more flexible collaboration and overseas cost benefits.
• A faster and more effective way to set up an in-house team. 
• The best solution is to find experienced workers with similar cultures without hassle. 
• Nearshoring BPO sectors are manufacturing, software & technology, retail & eCommerce, healthcare & wellness, and more.

3. Onshore or Domestic business process outsourcing (BPO)

Domestic or onshore BPO – when an industry operates or outsources from the same area or country service provider. They may be from different states, provinces, cities, and time zones. For example, you run a business in California and can hire a service provider from Texas. 

Key benefits of onshore BPO are:

• Help to conduct with the service provider at any time and get cost-effective solutions. 
• Provide additional tools and external experts’ advice on workflows. 
• Onshore BPO sectors are customer support, personal or virtual assistant tasks, project management, digital marketing, quality assurance, and more.

2 Different Types of BPO Based on Structure

Based on BPO work type there are different types of BPO services such as:

1. Front Office Business Process Outsourcing

Front office BPO services are the practice of dealing with existing clients and potential consumers. For example marketing, tech support, and customer support services. When you want to focus on your specific tasks, you can take advantage of hiring a front-office BPO. 

2. Back Office Business Process Outsourcing

Back-office outsourcing indicates internal business functions and doesn’t depend on customers like front-office BPO. That means back-office staff and customers don’t meet with each other. It represents all admin functions and tasks, including payroll, human resources, IT services, content writing, digital marketing, and others.

4 Different Types of BPO Based on Service

Considering business process outsourcing there are 4 different vendor providers, such as:

1. Knowledge Process Outsourcing (KPO)

KPO refers to hiring advanced experts on a specific business process. Mainly, these types of service providers manage highly-skilled jobs, i.e., web design, content creation, accounting analysis, and more.

2. Legal Process Outsourcing (LPO)

Legal processes define high-level legal activities. LPO service providers are hired to perform complex tasks such as drafting patent applications, creating legal agreements, performing legal research, and more.  

3. Information Technology Enables Services (ITES)

This type of BPO service manages all types of tech tasks over the Internet. ITES generally fulfills functions like technical support, service desk analysis, production support, and more.

4. Research Process Outsourcing (RPO)

RPO vendors mainly focused on data analysis and research functions. The vendors who offer RPO are marketing agencies, investment first, and others. 

After acknowledging what are BPO services and types, let’s check out BPO functions in the next section!

What are the functions of BPO?

The United States outsources BPO service providers around 300,000 jobs every year. From small to mid-sized businesses, all rely on business process outsourcing management to increase productivity and focus on important tasks. 

However, it is an excellent and more effective idea for several business functions, including:

• Business Development & Marketing: From market research to content creation, data entry, lead generation, and follow-up activities BPO service providers are responsible for doing their best. 

• • IT Management & Data Security: By outsourcing from professional companies, you can get on-demand assistance to handle tech corners or troubleshoot issues. In 2022,  the IT outsourcing industry gained around $400 billion. 

• Manufacturing: You can hire a dedicated onshore manufacturing team to get up-to-date reports and keep operations seamless. For example, the US has accounted for 15.83% market share in the global manufacturing business. 

• Shipping & Logistics: If you want you can outsource shipping, logistics, and product delivery services within one system. Most eCommerce owners hire BPO service providers who are responsible for concentrating on sales and marketing. 

• Human Resources: HR is the backbone of a company and is responsible for hiring expert employees and creating policies. By outsourcing, they can perform bulk employee verification, payroll management, hiring operations, and more.   

• Operations: B2B or B2C businesses outsource business process teams to manage sales line strategies and get subject matter experts’ advice. With an effective team, you can know-you-customer compliance and fulfill their needs.

Conclusion

Now at the end of a comprehensive guide on different types of BPO services, we hope you get in-depth BPO service vendors and operations. Remember, when you plan to embrace BPO, focus on your business goal. 

Are you ready to add business process outsourcing to your business and maintain flexibility in specific operations? Without waiting, reach out to the best BPO service provider now!