What is Business Process Outsourcing?

The Beginner's Guide to BPO for Companies

The balance of the global job market is changing.

In today’s hyper-competitive business landscape, many companies are facing the challenge of balancing efficiency, cost-effectiveness, and innovation. In this pursuit, many organisations are turning to Business Process Outsourcing (BPO) as a strategic solution. 

What is Business Process Outsourcing?

BPO involves contracting specific business tasks or processes to external service providers, allowing companies to streamline operations, reduce costs, and access specialised expertise.

As businesses strive to adapt to rapidly evolving market dynamics and technological advancements, the demand for BPO services continues to surge. From customer support and finance to human resources and IT, virtually every sector can benefit from outsourcing non-core functions. 

However, successful BPO implementation requires careful planning, diligent vendor selection, and robust management strategies to realise its full potential.

A Guide to Business Process Outsourcing

Section 1:

The Benefits of Business Process Outsourcing

There are a number of benefits that lead businesses to make the decision to outsource. Here are some of the biggest advantages.

Cost Efficiency: Outsourcing presents a cost-effective solution compared to hiring local staff, as you can leverage the lower expected salary in another country, such as the Philippines. 

Expertise Access: You gain access to specialised skills and knowledge from experts in their respective fields. With a BPO, you can easily navigate foreign job markets to find the right talent. 

Core Business Focus: Outsourcing allows you to focus on the core aspects of your business, investing more into what matters most for your organisation, while your offshore team handles support and peripheral tasks. 

Flexibility: It provides the flexibility to adjust resources according to business demands, adding team members without the financial and legal restrictions of hiring new local team members.

Section 2:

How Business Process Outsourcing Works

Usually, it’s as easy as three steps:

  • Share the job description
  • Select candidates provided by BPO 
  • Hire the one who’s right for your team

The process is simple. All you need to do is pick your candidate from a standard recruitment process handled by the BPO. 

You’ll interview and select candidates based on the skills, experience, and culture fit that you need, just like any other team member, and the BPO provider will frequently collaborate with them, in meetings, on projects, and across all business processes

After this, you pay a monthly invoice to the BPO that covers your new hire’s salary in local currency, insurance, health coverage, computer equipment and all other local requirements, meaning you don’t need to worry about these things. 

Section 3:

Choosing a BPO Provider

Business Process Outsourcing (BPO) providers are companies that have recruiters overseas that help you to hire an overseas team member. For example, on TalentVine we work with many Australian BPOs who help employers to outsource to the Philippines. These providers will help look after everything for you in the Philippines, from providing office space and equipment for your hire to organising HR frameworks and social events with other outsourced workers.

There are a number of factors to look at when choosing a BPO provider. Some of these include industry specialisation, years in operation, whether they provide office space and equipment to your hire, and a number of other distinguishing services. You can compare these offerings for TalentVine’s verified BPO partners here.

Section 4:

Types of Business Processes Outsourcing

Domestic BPO, on the other hand, refers to outsourcing within a country’s borders. This could involve contracting services from a vendor in a different city or state. Factors such as regional skill availability or cost variations might drive this decision. For instance, a Brisbane-based business might engage a specialised service provider in Perth, leveraging local expertise or cost advantages.

Nearshore BPO involves contracting services from countries closer in proximity. For businesses in Australia, this could mean looking to New Zealand. This type of outsourcing is chosen when specialised skills are available at a lower cost nearby, though considerations like time zones and language proficiency come into play.

Offshore BPO refers to the practice of outsourcing services to foreign countries, a strategy driven by factors like talent availability, skill shortages, and lower labour costs. For instance, many companies opt to outsource their customer service to call centres abroad, benefiting from skilled labour at reduced rates, ultimately leading to lower overheads and potentially lower prices for consumers.

Find the Right BPO Provider for You!

Outsource to the Philippines through highly-rated Australian outsourcing firms. Build your team and grow your business, with expert support from around the world!

Simply tell us a bit about the role, and we’ll connect you with the most suitable BPO providers qualified to help! This is based on specialisation, location, service, and more.

Conclusion: A Complete Guide to Understanding BPO

Thousands of modern businesses use Business Process Outsourcing (BPO) to hire full-time overseas staff that can do the exact same job at a fraction of the cost compared to local talent. This strategy enables you to scale your business operations at a lower cost base whilst easily hiring skilled overseas talent that is hard to recruit within Australia.

BPO delivers cost savings by accessing skilled resources overseas without in-house overheads. They’ll handle everything in the process, from paying your hire in local currency, providing vital equipment such as computers and desks, and potentially providing them with an office space to work in. Working with a BPO provider is perfect for SMEs inexperienced with leveraging overseas talent, and managing the entire process for you. 

Want to find out which reputable BPO providers are right for you? Take a look at our free directory of to rated BPOs now!

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