What is Business Process Outsourcing?
Business Process Outsourcing, or BPO, refers to the process of contracting standard business functions to be handled by a party outside of the company.
Functions most commonly outsourced include:
- Customer service
- Human resources management
Companies can often benefit from implementing the practice of BPO, meaning more flexibility and cost efficiency can be achieved. Third-party providers set up for a dedicated task such as payroll perform more efficiently and are able to transfer those cost savings to their clients.
What is the difference between BPO and a Call Center
Call centers are a type of BPO. For example, a manufacturer may outsource their customer service to a call center. But business process outsourcing isn’t limited to customer service, or to call centers. The same manufacturer might use BPO to outsource payroll, accounting, and similar administrative tasks.
What is BPO in real estate?
BPO is used to outsource front-office administrative tasks like property listing, and back-office tasks like research or accounting. This allows brokers the freedom to spend their productive time with the work for which they’re specialized, rather than being constrained by administrative duties. Consequently, BPO can drive down the costs of asset summary, loan sizing, lease abstraction, and so forth.
How can BPO reduce your business admin?
You can outsource just about any business function, which is a simple way to reduce your business admin. Spend a little time making sure you understand and can convey, in writing, what task(s) you want to outsource. For example, if you’re 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.