Business process outsourcing, or BPO, is the contracting of business functions like marketing and customer support. Unlike general outsourcing that sends a single job to an outside provider, BPO outsources an entire business function. Businesses generally do not use BPO for critical business functions, but rather support functions that can easily be performed by an outside provider.

There are three main types of BPO. Offshore BPO sends the work to a different country, and often means significant savings. Nearshore BPO is when the work is sent to a close location, like a business in the USA sending work to Mexico. The third is Onshore BPO, in which you outsource to another business in the same city or location, helping to keep miscommunications to a minimum.

There are also two common types of BPO functions: front office and back office. Front office BPO is anything that deals with customers including customer support and sales. Back office BPO is anything that has to do with internal company processing, such as accounting and purchasing.

There are many benefits of outsourcing, including the following:

Cutting Costs

BPO offers significantly lowered business expenses. Depending on where you’re outsourcing to, you can save a lot of money with BPO. You can get slight savings with Nearshore and Onshore BPO, and significant savings with Offshore BPO.

You can also save money with BPO because of a law that allows you to defer paying income tax on profits made abroad, effectively giving you a tax break.

Focus

While it may feel like an accomplishment to do everything in house, BPO allows you to put your focus on growing your business, core functions, and improving support. For example, if you’re running a software startup, your in-house team might not have the customer support experience you need. Rather than spending time and money training your team, you can use BPO for your customer support needs and focus your resources on expanding your business.

Global Expansion

BPO also gives you access to global markets without having to spend time or money on breaking down language barriers or bursting into markets.

These are just a few of the benefits business process outsourcing can offer your business.