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Business Process Outsourcing (BPO):

All You Need To Know

When you come across the word “BPO,” what’s the first thing that comes into your mind? Is it an overwhelming scene of overlapping voices and phones ringing? Maybe. While that mental image is commonly associated with the BPO industry, it’s so much more than that.

From the bright lights of production floors to tireless agents tapping away on their computers, the BPO sector is a vast industry that encompasses millions of opportunities and endless room for growth. It’s also the crux of countless global companies seeking to both get a competitive edge and reduce costs.
what is bpo industry

What is a BPO?

BPO, or business process outsourcing, is a business strategy in which certain aspects of operations are delegated to a third-party provider. Outsourcing business operations allows companies to focus on their internal goals, scale rapidly, exceed benchmarks, increase productivity, and reduce costs.

BPO operations, and the BPO industry as a whole, circle largely around customer service. However, due to evolving market demand and the increased capabilities of technology, the BPO industry’s operations expanded into areas focused on AI development, workforce management, IT services, and other back-office support functions (such as finance or HR), just to name a few.

Startup companies and established brands alike outsource a part of their operations to reach their full potential.

Different Types of Outsourcing Services

The BPO industry covers almost every conceivable service line out there. With how vast the BPO sector is, it’s important to know the different types of outsourcing business services.

Agencies in the BPO industry offer a roster of their best services and it varies from one provider to another. One company may offer exclusively customer service support and the other may offer back-office support and recruitment services.

Other types of outsourcing services are as follows:

  • Information technology-enabled services (ITES) BPO
  • Knowledge process outsourcing (KPO)
  • Legal process outsourcing (LPO)
  • Recruitment process outsourcing (RPO)
  • Customer service support
  • Back office support

    Why Should Companies Leverage the Outsourcing Business?

    BPO companies are the backbone of the outsourcing industry, several key businesses, and the implementation of new technologies. From an economic perspective, they provide jobs to hundreds of thousands of people. While through a business perspective, they make it possible for companies to get their work done at a fraction of the cost in the most efficient way possible.

    As companies scale, the demand and the complexity from customers increases. Without careful planning, in-house customer representatives could possibly drown in excess work, eventually leading to unengaged employees, unfavorable performance, and low customer satisfaction.

    On the other hand, some businesses find themselves unable to come up with cost-efficient systems in building their in-house teams or their current processes take up too many resources.

    This is a common conundrum that growing companies face that prompts them to take a look into the BPO industry and reach out to outsourcing agencies and third parties. Business process outsourcing can help reduce cost while building increased efficiency. Moreover, business process outsourcing improves the quality of service, customer satisfaction, and brand reputation.

    The success of these companies depends on how well they do in providing services that meet customer needs, which means they must continually innovate new ways of doing things. This is one of the reasons why the BPO sector welcomes innovative outsourcing companies that will disrupt the system while maintaining the quality of their services.

    The Benefits of Business Process Outsourcing

    The BPO industry wouldn’t be as successful if it didn’t offer advantages and promising results to the companies it serves. Partnering with a reputable outsourcing business provider will benefit your company.

    bpo sector

    Reduce costs

    Outsourcing business processes help companies save money. It’s not just about paying a third party to do your work, but also about reducing the need for office space, tools, and staff. You’ll be able to focus on what matters most—your customers—and make sure they are satisfied with every aspect of their experience with you.

    bpo process

    Improve quality

    Outsourcing to a BPO company that has the expertise to do the job well is another way of improving quality. When you outsource your work, you can reduce errors, defects, and risk of failure. This will save money on production costs as well because it reduces the amount of time spent on repetitive tasks that could be automated.

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    Access to the worldwide talent pool

    The BPO industry is equipped with worldwide talents. BPO careers can be varied depending on time zones, skill sets, and specializations in industries that are difficult or impossible for you to cover yourself. By hiring these experts on an as-needed basis, you’ll be able to find solutions quickly at a fraction of the cost.

    what is bpo and how does it work

    Rapid scalability

    If you’re a growing company, outsourcing business processes can definitely help you to scale up. Hiring, incorporating tools, managing teams, and improving your services can be easily done with outsourcing than in-house. This is especially useful if your company has multiple projects going on at once.

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    Increase efficiency

    BPO companies are experts in their fields. With proper alignment with your brand’s objectives, your operations can be handled faster and more efficiently.

    Choosing the Right Business Process Outsourcing Partner

    No matter how beneficial business process outsourcing is to a company, some partnerships do not work out. This is why the BPO industry continues to face the challenges of apprehensions and prejudices. Evaluating and deciding the best outsourcing partner for you is important.


    The least expensive choice may not be the best in the long run—make sure that you’re choosing an outsourcing business provider that will help you cut your costs without cutting corners.

    Years of experience

    Business process outsourcing companies advancing in the industry had seen and experienced trends and phenomena that made them the way they are today. With years of experience, tried-and-tested operating procedures have been implemented and continuously developed throughout the years.

    Scope and responsibilities

    There are various types of outsourcing business solutions available in the industry. To ensure that you’re getting the best service possible, identify areas of improvement and which departments are going to be outsourced, and partner with the best-suited outsourcer in that area.

    Culture fit

    Lastly, when choosing the right BPO partner, you want to make sure that they are a good cultural fit for your business. Check how the business process outsourcing company takes care of their team to motivate them to work well and efficiently.

    TaskUs, the world’s fastest-growing BPO service provider, has over 10 years of experience in the BPO industry—which means that we have our own standard operating procedures that stood the test of time.

    Across 13 countries and 26 different sites, we provide Ridiculously Good services to 100+ clients from different industries. In addition to our 45,300 full-time teammates, thousands of Taskers lend a hand in data annotation, content moderation, and audio transcription, among others.

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    Languages across 26 sites and 13 countries


    Voluntary Attrition Rate


    In-house coaches and mental health professionals

    We continuously develop our knowledge in Digital Customer Experience, Artificial Intelligence Services, Trust + Safety, Risk + Response, Consulting, and Learning Experience. Our services heavily revolve around implementing AI technologies alongside the human touch—we firmly believe that the synergy between tech and humans allows us to grow beyond imagination.

    Our Ridiculously Good formula allows Us to foster growth and welcome disruptive ideas from our employees and clients alike. By providing exemplary employee benefits and promoting diversity, equity, and inclusion, we’re nurturing a positive work environment where everyone can excel.

    What is the formula for success? It’s You + Us.

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