We all have heard about call centers and BPO. But do we really know the full form of BPO, it is Business Process Outsourcing. It is a process of outsourcing non-core tasks to another company for efficient management. Services such as technical support, customer service, or hiring process. All these BPO tasks can be divided into various types based on their roles. Learning about these types will help you pick a career path that aligns with your aspirations, interests, and skills.

9 Types Of BPO

BPO may seem like a very small thing but it is a huge field that can be categorized based on the tasks, services, and locations. In its nascent phase, BPO was a solution that manufacturing companies used to outsource supply chain processes to a third party. However now it has become a common solution used by most companies, outsourcing their noncore processes. This helped them to bring efficiency at a low cost as they saved themselves from the need to hire and manage the in-house team. Moreover, the companies were also able to focus on their core functions.

Here are all the nine types of business process outsourcing (BPO) services:

1. Back-office BPO

Back office BPO is a type of BPO that is not directly involved in customer interaction. Back Office BPO examples are services such as administration, information technology (IT), human resources, payroll, and accounting. Companies use back-office BPO services in order to cut costs, and time on various processes such as hiring, training, etc.

2. Front-office BPO

On the other hand Front office BPO is a type of BPO in which direct customer interaction. Some front-office BPO examples include technical assistance, customer service, and sales. Some business process outsourcing companies for Front office support such as call center, live chat, etc.

3. Offshore BPO

The above-mentioned types of BPO were based on service. While BPO can also be categorized on the basis of location. It is a process of outsourcing operations to a company in a foreign company. This can help companies reduce expenses or access expert solutions. For instance, A United States-based company when outsourcing its payroll services to a BPO company in another company is an example of Offshore BPO.

4. Nearshore BPO

Nearshore BPO is also a type of BPO based on the location that refers to the outsourcing process in the neighboring country. Partnering with BPO companies in nearby countries can be beneficial in a way there is no language or time zone difference. A Nearshore BPO example can be when a company in India outsources its processes to a company based in Pakistan or Nepal.

5. Onshore BPO

Onshore BPO is also known as domestic BPO. It is a type of BPO in which companies outsource their processes to BPO companies based in the same country. However, there can be differences in state, territory, or region. Differences in the region can help companies cut costs. Moreover, in some countries, the company visits the company for training, support, and collaboration.

6. Knowledge process outsourcing (KPO)

Apart from location and services, there is another type of BPO service which is Knowledge process outsourcing (KPO). In this process, companies outsource some of their specific services to a specialized company that has advanced skills. Such as companies outsourcing their insurance, healthcare, product management, or digital marketing to companies who have the expertise of these services.

7. Legal process outsourcing (LPO)

Within KPO exists a dedicated specialization called Legal process outsourcing. Organizations that specialize in legal process outsourcing execute remote legal functions on behalf of other organizations. LPO agencies employ paralegals who complete tasks that include contract drafting legal research and litigation assistance.

8. Research process outsourcing (RPO)

As a sub-discipline of KPO RPO functions parallel to how LPO operates. A company that contracts with another organization for research and development activities maintains this R&D relationship. Companies who rely on RPO services receive comprehensive package solutions that include market research data analysis along with investment research. Company operations within both pharmaceuticals and investments typically rely on RPO services.

9. IT-enabled services (ITES)

Through this type of BPO organizations transfer services to vendors using Internet platforms. Companies utilize ITES services to manage their production requirements alongside technical support functions and telecommunications and web service operations. Specialized IT services come from agencies to firms that lack necessary IT infrastructure capabilities.

Conclusion

In short, BPO can be categorized into different categories based on services, locations, etc. Each type of BPO plays an important role in offering stability, efficiency, and scalability to companies. Moreover, it also helps them to cut costs and focus on the core company processes.