the meaning of BPO in simple terms?

The Meaning of BPO in Simple Terms

Business Process Outsourcing, or BPO, has become commonplace in many industries in a relatively short time. BPO offers many benefits, but the processes are sometimes opaque to the uninitiated. With their extensive experience in BPO and related fields, LinkedERP simplifies this service into terms easily understood by technical and non-technical professionals.

What is BPO?

Business Process Outsourcing, or BPO, is outsourcing business functions necessary for the organisation to function but not integral to its core values. This process allows organisations to stretch their capabilities by keeping core growth functions in-house while outsourcing others.

In small organisations and start-ups, BPO is typically used to augment staff capabilities since the organisation doesn’t have enough employees to fulfil all the necessary roles. In large organisations, BPO helps streamline operations and save costs.

What are commonly outsourced business processes?

BPO is typically divided into two categories: back office and front office functions. These functionalities have evolved into an industry in itself, giving rise to companies specialising in outsourced process facilitation.

Back-office functions support operations, essential to business functionality but do not necessarily contribute to growth. These include human resources, IT, quality assurance, and regulatory compliance.

Front office functions are customer related. These could include technical support, marketing, and sales.

What are the benefits of BPO?

Outsourcing business processes offer many advantages, the main ones being cost saving and process streamlining. When carried out effectively, BPO augments staff capabilities, adding ad-hoc employees to the organisation who take care of automatable or highly specific tasks unrelated to the core business. Employees can spend more time on high-revenue work, contributing to business growth, rather than facilitating in-house HR processes.

BPO also allows for significant cost saving potential since organisations only pay for the necessary functionality. When carried out effectively, BPO allows small organisations to hire an HR professional for a few hours every week or month instead of paying a full salary for the position. For more benefits related to BPO, please read our full article.

BPO offers countless advantages to large and small businesses alike. For more information on the benefits of BPO, contact one of the LinkedERP superheroes today.