{"id":15789,"date":"2023-05-08T07:54:00","date_gmt":"2023-05-08T11:54:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?post_type=sage_glossary&#038;p=15789"},"modified":"2023-05-10T08:54:58","modified_gmt":"2023-05-10T12:54:58","slug":"bpo-business-process-outsourcing","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-us\/blog\/glossary\/bpo-business-process-outsourcing\/","title":{"rendered":"What is BPO (Business Process Outsourcing)?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/\" class=\"entry-header__link\">Glossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is BPO (Business Process Outsourcing)?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is BPO (Business Process Outsourcing)?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/bpo-business-process-outsourcing\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<h2 class=\"wp-block-heading\">BPO meaning and context<\/h2>\n\n\n\n<p class=\"\">Business Process Outsourcing, or BPO, refers to the process of contracting standard business functions to be handled by a party outside of the company. <\/p>\n\n\n\n<p class=\"\">Those in the BPO industry can provide this support thanks to their strong understanding of organizational processes that are similar across most companies.<\/p>\n\n\n\n<p class=\"\">Most common BPO services and functions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Customer service<\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/\">Accounting<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-us\/payroll-software\/\">Payroll<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-us\/human-resources\/\">Human resources management<\/a>.<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Companies benefit from business process outsourcing by achieving more flexibility and cost efficiency. <\/p>\n\n\n\n<p class=\"\">By outsourcing a dedicated task such as payroll to a specialized BPO company, they may make cost savings that can be passed on to clients.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Different types of BPO companies and services<\/h2>\n\n\n\n<p class=\"\">Though business process outsourcing services originated in the manufacturing industry, the practice is now adopted by all types of businesses, including for-profit, non-profits, and government agencies.<\/p>\n\n\n\n<p class=\"\">Some businesses outsource full business functions to a single provider, while others use BPO to run a specific process, like administration, IT management, or customer support.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is the difference between BPO and a Call Center<\/strong>?<\/h3>\n\n\n\n<p class=\"\">Call centers are a type of BPO. For example, a manufacturer may outsource their customer service to a call center. <\/p>\n\n\n\n<p class=\"\">But business process outsourcing isn\u2019t limited to customer service, or to call centers. The same manufacturer might use BPO to outsource payroll, accounting, and similar administrative tasks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is BPO in real estate?<\/h3>\n\n\n\n<p class=\"\">In real estate, business process outsourcing is often used for front-office administrative tasks such as property listing, and back-office tasks such as research or <a href=\"https:\/\/www.sage.com\/en-us\/products\/sage-300-construction-and-real-estate\/\">accounting<\/a>. <\/p>\n\n\n\n<p class=\"\">This allows brokers the freedom to spend their productive time on the work they specialize in, rather than being constrained by other duties. <\/p>\n\n\n\n<p class=\"\">Consequently, BPO can drive down the costs of asset summary, loan sizing, lease abstraction, and more.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Discover Sage Construction and Real Estate solutions <\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Whether in your office or in the field\u2014 get the job done right every time.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/sage-construction\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-6302\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Learn more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-636056868-1064x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-636056868-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n\n<h3 class=\"wp-block-heading\">The wider BPO industry<\/h3>\n\n\n\n<p class=\"\">Companies of all sizes and at all stages of their journey may use BPO. <\/p>\n\n\n\n<p class=\"\">For example, a startup might not have the budget to hire an entire in-house department, or an established company may want to reduce complexity and improve flexibility.<\/p>\n\n\n\n<p class=\"\">So, BPO companies have a large pool of potential clients. They may serve a particular industry, specialise in certain functions or processes, or help businesses achieve a range of objectives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The benefits of business process outsourcing<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">BPO can reduce your business admin<\/h3>\n\n\n\n<p class=\"\">You can outsource just about any business function, which is a simple way to <a href=\"https:\/\/www.sage.com\/en-us\/blog\/ease-your-admin-headaches\/\">reduce your business admin<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"\">Spend a little time making sure you understand and can convey, in writing, what task(s) you want to outsource.\u00a0<\/p>\n\n\n\n<p class=\"\">For example, if you\u2019re outsourcing bookkeeping needs, you might need to set aside time to get your accounts in order, plus take a little extra time to walk your accountant or bookkeeper through them for ease of understanding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">BPO can make your business more flexible<\/h3>\n\n\n\n<p class=\"\">Another key advantage of BPO is its potential to make your business more flexible. <\/p>\n\n\n\n<p class=\"\">By outsourcing areas outside of your core competencies, you free up time, costs, and resources to focus on what\u2019s most important.<\/p>\n\n\n\n<p class=\"\">By working with BPO companies, you may also gain access to cutting-edge technologies that you may not have in-house, helping you continually improve operations and adapt to shifting markets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choosing a BPO service company to meet your needs<\/h3>\n\n\n\n<p class=\"\">When choosing a BPO provider, companies need to consider much more than price. The vendor\u2019s ability to help the business achieve its objectives, become more flexible, or enhance innovation should all be factored into the decision.<\/p>\n\n\n\n<p class=\"\">Other qualities to look out for include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ability to support the business with both current and future objectives<\/li>\n\n\n\n<li>Knowledge of any relevant regulations and data laws<\/li>\n\n\n\n<li>Relevant industry experience<\/li>\n\n\n\n<li>Uses metrics to report on goal progress and prove they are hitting contract targets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Combine BPO with the right software to streamline your business<\/h2>\n\n\n\n<p class=\"\">To maximize the efficiency of business processes, many companies combine BPO with enterprise software. <\/p>\n\n\n\n<p class=\"\">There are potential solutions for every function, and it\u2019s worth considering how they fit into your overall strategy alongside any outsourcing.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Reduce admin and boost productivity <\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>5 ways AutoEntry and Sage Accounting save you hours of admin. Download the guide today.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-d9990b67-07ac-4172-8724-60d12082cf9d\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get it now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-619403886-1064x810.jpg\" class=\"single-cta__image\" alt=\"Woman on laptop in coffee shop\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/03\/GettyImages-619403886-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BPO meaning and context Business Process Outsourcing, or BPO, refers to the process of contracting standard business functions to be handled by a party outside of the company. Those in the BPO industry can provide this support thanks to their strong understanding of organizational processes that are similar across most companies. Most common BPO services [&hellip;]<\/p>\n","protected":false},"author":1169,"featured_media":0,"template":"","meta":{"_sage_video":false,"footnotes":""},"tags":[170,17],"class_list":["post-15789","sage_glossary","type-sage_glossary","status-publish","hentry","tag-business-strategy","tag-hr-payroll"],"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/sage_glossary\/15789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/sage_glossary"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/sage_glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1169"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/sage_glossary\/15789\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=15789"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=15789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}