Outsourcing business process refers to the assignment of a task or part to a third party service provider under a contract.

BPO (Business Process Outsourcing) is a great way to run and lead any business.

This service allows a businessman to focus on the core work of his business while allowing him to give control to a third party who works on a contractual basis. It makes his job much easier.

Let’s say, for instance, there is a software firm whose job it is to create, maintain, and sell software.

The company employs 500 people. Now, it needs a call center to support its customers. 50 people are needed to solve customer problems on the phone.

This shows that all the costs of building an office for that software company and the training and hiring of employees are saved. The agency can then start their call center work with very little money.

Outsourcing business processes can help companies save time and money.

BPO is often referred to as a call center by many people. However, it is not.
BPO can include many services, many of them technical.

BPO in India


Many multinational corporations around the globe outsource today their various services.

BPO companies in India receive a large portion of the outsourcing.

Many BPO companies are located in India. Due to the low rupee value against the dollar, it is very affordable for foreign companies to outsource their business to India.

It is also an opportunity for BPO firms in India, as many Indian students are searching for work after their studies. BPO jobs can be a bit easier.

More than 5 million people are employed in the BPO sector in India.

Types of BPO

Type of BPO

Two types of BPO are available, which allow a company to transfer its non-core activities into the hands of a third party.

  1. Back Office Outsourcing

Business Process Outsourcing is a process that involves internal business functions. This type of processing requires special technical skills from third-party employees in order to complete multiple tasks.

Some key functions include:

  • Accounting and Finance
  • Human Resources
  • IT solutions

2.Front Office Outsourcing

Business Process Outsourcing involves outsourcing business functions that are related to customer function.

Third-party employees need to have communication skills, and not technical skills.

This outsourcing is often also called a call center.

These are some of the key functions:

  • Support for customers
  • Technical Support
  • Sales

Required education and skills for BPO job

Many people believe that anyone can work in the BPO industry.
You will need to have different skills to work in different BPO roles.

Minimum qualification required for BPO jobs

Back officeMinimum graduation in the field

Front office-Minimum 12th grade or higher in any stream

Basic skills required for BPO jobs

  • Written and spoken communication skills
  • Willingness to Help
  • Discipline is essential to be able to work in any shift

Outsourcing business process has many benefits

Both a company as well as a BPO company can benefit from outsourcing business processes. These are some of the main benefits:

  • BPO allows a company to focus on its core strengths.
  • BPO can help reduce company expenses.
  • BPO offers companies the chance to improve productivity.
  • BPO reduces costs for training and recruiting employees.
  • BPO can provide 24/7 service for customer service operations.

Other BPO Full Forms

BPO-Business Process Outsourcing-in Business

BPO-Broker Price Opinion – Stock market

BPO- Bankers pay Order-in Banking

Understanding Business Process Outsourcing (BPO).

Large and small businesses alike, whether they are startups or established companies, choose outsourcing to take advantage of the many innovative services that are available in today’s highly competitive market.

Companies use BPO in two areas: back office and front offices. BPO in the back office refers to companies that contract their core business support functions such as IT services, payroll processing, regulatory compliance, quality assurance, and human resources to ensure that the business runs smoothly.

Front office BPO tasks, on the other hand, often include customer-related services like tech support and sales.

Outsourcing business processes is growing. This can be seen in the fact that the global market for outsourced services was estimated at 88.9 Billion U.S. Dollars in 2017. This was an increase of $12 billion over the previous year. 1

The extent of a company’s BPO options will depend on whether it contracts operations within its own country or abroad. BPO is considered “offshore outsourcing” when the contract is sent abroad where there are political stability, lower labor cost, and/or tax savings. One example of offshore outsourcing is a U.S. company that uses an offshore BPO vendor located in Singapore.

If the job is done in a neighboring country, BPO is called “nearshore outsourcing”. This would apply if the U.S. partner with a Canadian BPO vendor.

The third option, also known as “onshore outsourcing” (or “domestic-sourcing”), is when BPO services are contracted in the company’s country, even though its vendor partners may be located in other cities or states.

BPO is also known as information technology enabled services (ITES), because it uses technology/infrastructure to enable external companies to perform their tasks efficiently.

Take Note:

Attraction of Business Process Outsourcing, (BPO).

BPO is often attractive to companies because it allows them more operational flexibility. Companies can outsource administrative and non-core functions to gain time and resources for core competencies such as customer relations, product leadership, and other advantages.

BPO gives businesses access to new technological resources they may not otherwise have. Companies and BPO partners are always looking to improve their processes through the adoption of the latest technologies and practices.

American companies can benefit from outsourcing to countries with lower income taxes, and more skilled labor force as cost-saving measures.

BPO offers companies many benefits, including faster and more accurate reporting, increased productivity, and the ability of quickly reassigning its resources when needed.

BPO’s Disadvantages

BPO has its advantages, but there are also drawbacks. BPO can lead to data breaches and communication problems that could delay project completion.


  • BPO (Business Process Outsourcing) refers to the subcontracting of business-related operations by third-party vendors.
  • BPO was originally only for manufacturing entities like soft drink producers that outsourced large portions of their supply chains. However, BPO is now available to those who are interested in outsourcing services.
  • BPO can be referred to as “offshore outsourcing” when the contract is sent abroad where there is political stability and lower labor costs.