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The Benefits of Business Process Outsourcing

Business process outsourcing, or BPO, is the contracting of business functions like marketing and customer support. Unlike general outsourcing, which 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 an external provider can easily perform.

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There are three main types of BPO. Offshore BPO sends the work to a different country which 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 company 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 involves 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, you can save much 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 a law allows you to defer paying income tax on profits abroad, effectively giving you a tax break.


While it madoing everything in-housefeel like an accomplishment to d allows you to focus on growing your business, core functions, and improving support. For example, your in-house team might not have the customer support experience you need if you’re running a software startup. 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 spending time or money on breaking down language barriers or bursting into markets.

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

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