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  • Writer's pictureZayed Ahmed

An Overview of BPO Service Provider

Updated: Sep 13, 2022

What is a BPO Service?

BPO stands for Business Process Outsourcing. It is a prevalent phenomenon used by big businesses and corporations. A BPO is a process that involves an organization, or a company, hiring an external service provider. And these providers perform some specific functions for the hiring organization's business.

The external service organization is responsible for all the work that needs finishing for that particular business function. It is a fascinating but very effective business practice, and there are many reasons why organizations turn to the BPO. Hence, this article will give you an overview of the BPO services and the reasons for outsourcing business services.

Why Hire BPO Services?

Why do organizations hire BPO service providers? When they, supposedly should have competent staff to cover up for all of their business function.

A business has several different departments of operation, marketing, accounting, HR, and core functions to name a few. The issue is that even though they may have skilled employees, it is not realistic that a business does all of its functions in-house as this may lead to an unprecedented increase in costs and investment in time.

For example, some businesses might opt to hire a third party for their accounting and book-keeping, and others might opt to hire a third party for their digital marketing services instead of having one in-house to reduce costs.

Thus you can see that with the help of a BPO service provider, you can easily outsource tasks that are not a core part of your operation and which will be inefficient and costly to have in-house. That is why organizations hire BPO firms.

The Advantages of Outsourcing BPO Services

Outsourcing services to a BPO service provider for an organization has many advantages. Let's discuss some significant reasons why you should outsource some business services to BPO service providers.

Saves Costs

The first advantage is the cost. While it may not seem like it, BPO services can save you a lot of expenses. How so? Think about it! If your business outsources a particular business function to a BPO service provider, you don't need to buy equipment or hire employees.

This will save you recruitment costs, maintenance costs of equipment, and employee payments. On the other hand, you will need to pay for the service you are receiving from a BPO service provider. Comparing these costs against each other will show that BPO service yields less expense for the same service.

Increase Efficiency

Hiring a BPO service provider for your business can increase the efficiency of your company. There are many BPO service providers in the market. In order to compete and provide the best services to their client, they have to invest in the best technology, and equipment and build a team that has great expertise.

This practice of the BPO service providers automatically increases their efficiency and effectiveness. So, by hiring a BPO service provider, you are handing your work to them, and they can do it more efficiently. Thus ultimately, this will increase the efficiency of your business.

Make up for Your Lack of Expertise

Admit it or not, all organizations have some lack of expertise, especially in their non-core functions. this is natural. But to maintain a successful business, you must overcome your lack of expertise.

And you can do it by hiring a suitable BPO service provider. For example, your business may have good product quality and organizational management. But it lacks a good customer care department or you might have lackings in your marketing.

Such lackings can hamper your business's growth. By hiring a BPO service provider to handle those parts of your operation that you lack expertise in, you can resolve factors that hamper your business's growth and increase revenue.

Provides Your Business with a Strategic Advantage

Having a reliable BPO service provider with your business will grant you a strategic advantage over your competitors. It can be a technological advantage or a better work management advantage.

For example, you can let the BPO handle some of your business functions. This way, you can put your entire focus on your core business function. As a result, this can lead you to develop better business ideas and give you strategic advantages.

The Challenges of BPO Services

Just like the advantages, hiring BPO services can also give your business some disadvantages. So, here are some of the burdens you should take into concern.

Issue with Security

By security, we are referring to business confidentiality. Sensitive information leaks are a significant risk. And this might happen even if the BPO services are not working on your business's core functions.

Unfortunately, you must share some necessary and sensitive information with the BPO service provider while working with them. But this can be mitigated by signing legally binding contracts for NDA and confidentiality with them.


If you use BPO services for long-term projects, your organization may become overdependent on them. These may sometimes cause a risk of disruption of service if the BPO service provider faces any internal problems.

An easy way to mitigate this risk is to use multiple BPO service providers for large long-term projects instead of using only one BPO firm.

Communication Issue

Communication issues can be frequent if your organization and the BPO service provider are not in the same state. Also, it can be more visible in offshore cases. Hence, the BPO service providers may not understand your task completely due to miscommunications.

Sometimes this can cost substantial financial losses for your organization. So, to prevent this, you must establish strong communication mediums and correctly explain the work to the BPO service provider.


So, that was our overview of the BPO service providers. Do you think businesses and organizations should hire BPO firms? We think they should, but they should not be overdependent on one for large projects.

Or else they may increase risk factors that increase the chance of service disruption in the future. Organizations should also maintain a balance in hiring in-house and using external BPO service providers.

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