Business Process Outsourcing (BPO)
Business Process Outsourcing (also known as BPO) is the act of hiring another outside business to fulfill a process that your business needs to operate. To put it simply, you’re using a third-party service provider like RDI Connect to work through essential but non-primary business functions for your company. These services can range from social media marketing to human resources and contact center outsourcing solutions. RDI Connect can help your business improve its efficiency and focus on core business processes, resulting in new levels of success for your business.
The two main categories of service when it comes to BPO are front office and back office services. Front office services handle contracting your company’s customers through services like call centers, marketing, and tech support, while back office services handle internal business processes like billing or purchasing. BPO companies like RDI Connect typically combine these back and front office services.
Where BPO vendors are located determines the three categories of the BPO industry and global outsourcing.
1. Offshore vendors are located outside of the business’s home country. For example, a business in the United States could partner with an offshore BPO company in the Philippines. RDI Connect takes pride in relative proximity to the US and highly-skilled workforce.
2. Nearshore vendors are based in neighboring countries to the contracting business’s home country. To give an example, a company based in the United States could contract a nearshore BPO provider like RDI Connect located in Nogales, Mexico.
3. Onshore vendors are located in the same country as the contracting business, although they can be in a different state. A business based in Miami, Florida, could contract with a BPO company like RDI based in one of our many offices across North America such as Ohio, Kentucky, Indiana, Vermont, and Nevada.
Some specific services that BPO companies can specialize in include the following:
Customer Interaction Services
Such as call centers, voicemail and email services, social media, marketing, appointment scheduling, surveys, payment processing, orders processing, quality assurance, warranty administration, and customer support.
Back Office Transactions
Such as credit, debit, and check processing, receivables, collection, transportation administration, logistics, and warehouse management, to name a few.
IT and Software Services
Such as app development and testing, tech support, and IT help desks.
Finance and Accounting Services
Include billing services, general accounts, accounts payable, receivables, and auditing.
Human Resource Services
Include payroll services, healthcare administration, hiring and recruitment, training, retirement benefits, and insurance processing.
Include data mining, data analytics, internet and web research, information governance programs, and voicing customer feedback.
BPO providers offer a wide variety of different services to fill in gaps and help take your business to the next level, no matter the industry. Some specialized areas of service in the industry include the following.
Information-Technology Enabled Services (ITES) BPO
This form of business process outsourcing uses information technology over data networks or the internet to provide services. Examples of ITES business process outsourcing jobs include IT analysts, production support analysts, and service desk analysts.
Knowledge Process Outsourcing (KPO)
KPO firms go beyond offering expertise in business processes. They also provide business and domain-centric expertise. Examples of KPO services include analysis, research, and Microsoft Office Suite. KPOs can make low-stakes business decisions so long as they are in alignment with higher-level policies.
Legal Process Outsourcing (LPO)
LPO is a subgroup of KPO and is allocated a massive swath of higher-level legal work. LPO firms draft legal agreements and patent applications alongside conducting legal research. Some LPO BPOs even advise clients. LPOs consist of experienced paralegals who use industry-standard databases.
Research Process Outsourcing (RPO)
As another subgroup of KPO, Research Process Outsourcing focuses on research and analysis processes. The research and analysis these RPO companies perform informs business, biotech, investment, and marketing firms.
Travel outsourcing specializes in all the operations that go into travel logistics, from reservations to hotel and vehicle bookings. Travel BPO cuts back on costs for companies dramatically because of its financial efficiency and increased customer satisfaction. Airlines and travel companies often streamline front and back-office processes with BPO. To give an example, an airline could outsource its ticketing process.
Outsourcing business processes to a BPO service provider like RDI Connect is yet another pipeline businesses use to stay on top in the modern era. Whatever your business needs are, consider working with RDI to hold on to more of your company’s valuable time, money, and energy.