Everything you need to know about BPO in 2021

Businesses of all sizes outsource operations, from small startups to Fortune 500 firms, and the market is growing as new and creative services are introduced and businesses seek advantages to stay ahead of the competition. BPO may be a viable alternative to labor migration, allowing workers to stay in their home countries while contributing their expertise internationally.

However, simply resolving issues as they arise is insufficient. It’s also critical that businesses strive to change their business processes before issues arise. You want the business to continue to expand and develop, not just retain the current system.

The term “BPO” stands for “business process outsourcing.” Simply put, outsourcing is the practice of contracting another company to carry out a procedure that your own company needs. To put it another way, you’re entrusting non-core business practices to a third party such as BPO in the Philippines and other outsourcing companies in Asia.

Types of outsourcing

Back office and front office services are the two major categories of BPO services. Internal business procedures such as billing and ordering are used in back-office facilities. Marketing and technical support are examples of front-office facilities that pertain to the contracting company’s clients. These resources may be combined by BPOs so that they function together rather than separately.

  • Onshore -When you outsource work to another business within your own country, it is known as e outsourcing. For example When a corporation based in the United States employs an outsourcing company based in the United States.
  • Offshore – offshore is the opposite of onshore outsourcing, When your company hires a company based in another country to complete such tasks, this is known as outsourcing. A business in the United States could outsource to a company in India.
  • Nearshore – Vendors are based in neighboring countries to the contracting company. For example, A BPO in Mexico is considered a nearshore vendor in the United States.

Reasons to engage in outsourcing

1. To reduce costs – Outsourcing reduces the cost of in-house workers, particularly staffing and training, as well as the office space required to accommodate local employees. A business based in a developed world can take advantage of lower-cost employment opportunities. Finally, outsourcing allows companies to use variable-cost models, such as fee-for-service plans, rather than the fixed-cost models that are required when hiring local workers.

2. To allow flexibility – When it comes to handling the risks associated with launching new goods or services, companies that outsource their noncritical functions may operate more rapidly and efficiently. They can also reallocate internal resources to more important roles to improve coverage and responsibility allocation.

3. To increase speed and efficiency – Companies that outsource processes choose to assign certain tasks to experts, saving time, enhancing accuracy, and expanding their capacity. A BPO that specializes in records management, for example, will automatically archive documents, making them searchable and ensuring that an organization remains compliant with legal requirements. This eliminates the need for manual data entry and storage.

4. To enhance global reach – Some outsourcing firms can provide service to customers in several languages and at all hours of the day and night, relieving the local company of the burden. Outsourcing firms may take advantage of their presence in many countries while reducing the number of redundant divisions within a local organization.

5. To focus on major functions – Businesses may focus on their main services instead of company activities that aren’t directly related to their core processes through outsourcing. When a company outsources, for example, it won’t have to keep track of the payroll accountant’s results. Rather, it can concentrate its efforts on emphasizing its competitive advantages and optimizing overall development. As a result, these activities will improve a company’s competitive advantage and value chain interactions. In the end, the business would benefit from higher customer loyalty and earnings.

Types of services

1. IT services -Application development and testing, implementation facilities, and an IT helpdesk are examples of technical support functions. Manual data entry, for example, can be replaced with automated data collection, resulting in the increased data intake and shorter cycle times.

2. Finance and accounting – Billing services, accounts payable, receivables, general accounting, auditing, and regulatory enforcement are among these activities.

3. Human resource services – BPOs may assist in resolving employee issues. Payroll management, hospital administration, recruiting and promotions, employee training, insurance collection, and retirement benefits are some of the services they may provide.

4. Travel – This refers to all of the operations that a company uses to support its travel logistics, including reservations, hotel reservations, and vehicle reservations. The business saves money by using travel BPO because it reduces costs while increasing customer satisfaction. BPO is also used by airlines and travel companies to streamline front- and back-office processes. An airline, for example, might outsource its ticketing process.

5. Back-office – Check, credit, and debit card processing, collection, receivables, direct and indirect purchasing, transportation administration, logistics and transport, and warehouse management are all part of this.


With a versatile framework built to match your team’s needs — and adapt as those needs change — empower your people to go above and beyond. Maxicus’ capabilities as a BPO provider are designed to improve operations and business development for a wide range of front and back-office processes. Depending on your company’s needs, Maxicus offers both technical and non-technical solution portfolios. As customer experience becomes a key differentiator among companies and brands, it is becoming increasingly important for businesses to ensure the best possible interactions with their customers. Business process Outsourcing companies processes to a professional player such as Maxicus has its own set of advantages.

Maxicus is a Business Process Outsourcing partner with several well-known industry leaders around the world. Our tailored strategies have offered a compelling business value proposition to maximize operational efficiency for our clients for the past two decades.

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