What Is Business Process Outsourcing (BPO)?

Business process outsourcing (BPO) is an approach to doing business in which a company hires an outside service provider to carry out a significant duty or activity.

Business Process Outsourcing

Companies have several procedures for selling and purchasing services, whether directed to the individual or corporate customers. Each of these processes has a name and in this article, we will talk about BPO.

This is different from the B2B (business to business) process, which occurs when a company provides services to another company, whereas BPO works with the outsourcing of services to another company.

And in this article you will know how to apply BPO within your company, check out the main subjects:

  • What is BPO?
  • Which industries can use BPO?
  • How to apply BPO in your company?
  • What are the benefits of BPO?

Good reading!

What is BPO?

Business Process Outsourcing, BPO in English translation, means outsourcing of business processes, in which they look for a company that has expertise in an area of ​​expertise that needs to be implemented within the company itself.

For example, a digital marketing company needs the accounting and legal area to take care of its rights and interests and ends up outsourcing another company's services to immediately follow up. Despite having outsourcing in the name, BPO goes far beyond just outsourcing, as the company needs to be specialized not only in the area but also in the niche market of its clients.

Which industries can use BPO?

The company needs to check which services are unpredictable that the sectors have, and especially to check the possibility of having the internal service, if it does not have the budget or does not want to carry out a new selection process, it is necessary to resort to the external outsourcing process. Therefore, we separate the main sectors that are requested through the BPO:

Juridical processes

Ensure that the company acts by the law, complies with legislation, avoids labor lawsuits, and provides day-to-day support so that small problems do not become major lawsuits or fights in court.

IT area

It provides platforms, tools, cloud storage, software, artificial intelligence, bots, chats, and automation that facilitate internal processes and ensure qualified time optimization.


It offers more flexibility about the company's accounts, payment of fees, taxes, and salaries, payment of dismissals and admissions, tax declaration and protection about the company's profitability, and alerting possibilities of cuts or investments.


With the possibility of carrying out training with employees more frequently, taking care of the bureaucratic part, hiring and terminating employees, and working with human resources more focused on the company.
Oversight Checks compliance with tax laws manages actions and provides practical advice on how to optimize the company with this tax management process.

Customer service

In many companies, the service is assigned to a person or sector, which can go through rotary or maintain a professional station, but hiring a company that already provides these services and being able to serve you outside business hours can be very useful for the company and your customers.

How to apply BPO in your company?

By hiring external sectors to take care of certain areas within your company, verifying which services are included in the tariff carried out by hiring to increase the company's productivity, and improve the delivery of employees.

It is necessary to research the BPO that meets the corporate environment that your company needs, make a comparison between them, request a quote, and analyze which one best fits the requested area.

Legal and accounting processes are the most common to adopt this outsourcing model and end up being the most contracted within this sphere, as every company depends on keeping itself by the laws and leaving the financial part stable.

But one should not forget that there are several types of BPO, and what could not be missing when hiring is the IT area, as it facilitates activities, ensures that they are carried out in a shorter period, and also because it can be accessed at any time through the access key that each collaborator would have.

What are the benefits of BPO?

This depends on the contract, the demand, and the result, which can be improved and expanded as the strategies are applied and adapted according to each situation.
With specialized teams in the area and focused on the designated objectives, it is easier to obtain:

  • Increased productivity;
  • Reduce the excess of tasks;
  • Decrease the accuracy of working overtime;
  • Cost savings;
  • Time optimization;
  • Process quality improvement.

By focusing on improving strategies that evolve the company, it differs from common outsourcing services, BPO is a more modern and innovative alternative in external hiring, as it is always updating and focusing on the best of its client.

Muhammad Naeem Sajid