The massive growth of the Business Process Outsourcing (BPO) industry in countries such as India, the Philippines, China, Egypt and Bangladesh just goes to show that a lot of companies nowadays are on the lookout to find better ways to cut costs in certain areas of business operations such as payroll, accounting and customer service. Come to think of it, outsourcing is the best alternative that the company has as it will bring about several advantages and benefits. Worrying will not be an option anymore as the third party service provider will do anything on the company’s behalf.

Currently, there are two BPO categories: (a) front office outsourcing, which involves customer-related services including tech support; and (b) back office outsourcing, which involves internal business functions including billing, purchasing and collections. A BPO company may also be (a) on-shore outsourcing, wherein the third-party service provider is located within the company’s own country; (b) near-shore outsourcing, wherein BPO work is given to a company’s neighboring country; or (c) off-shore outsourcing, wherein the contracted company is outside the company’s own country.

Such significant change in company strategy has been brought about by the desire to gain more from less. Usually, BPO companies have a large talent pool with minimum labor costs. However, since the service is provided by third party providers, it is the client’s prerogative to establish metrics with targets that the company has to meet to measure performance. Failure to meet pre-determined requirements may mean termination of the account from the client, which is the reason why appropriate training and quality checks should be performed at all times.

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