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Frequently Asked Questions

What is BPO? How do business process outsourcing companies work?

BPO or business process outsourcing is a method of subcontracting core business operations to an external service provider. Businesses opt for BPO either for back-office operations or for front-office operations based on the processes they can outsource. BPO companies are third-party vendors that are responsible for the management of the outsourced business processes by hiring and training the staff and meeting the targets while ensuring business operational efficiency.

How are BPO services different from call center services?

BPO services are completely different from call center services. Typically, call centers are centralized systems designed to handle superior customer support via phone calls or chatbots, where the contact agent takes all types of user queries, tries to resolve issues, provides product-related support, and enables new sales opportunities. Whereas BPO or business process outsourcing services vendors handle core business functions such as payroll, HR, accounting, and IT services, delivering value and high operational efficiency.

What types of services do BPO companies offer?

BPO companies offer different types of services including general assistant, admin assistant, back-office support, front-office, industry-focused support, document management, social media marketing, website maintenance, sales and marketing development support, lead generation support, payroll, HR, accounts, healthcare, IT helpdesk, knowledge process, legal, research process, and much more. Such support services help businesses in reducing complexities and improving flexibility and efficiency. Top Business Process Outsourcing companies have also started offering AI-based support services and Blockchain-based services for network management, initial coin offering (ICO) support, crypto wallet management, etc.

What are the advantages of hiring a BPO company?

A few key advantages of hiring a BPO company are that you save time, cost, and resources in operating certain core business functions yet maintain efficiency. Outsourcing your specific business processes also fastens the activities and delivers measurable results. Outsourcing activities also help reduce the burden on the existing employees and help in focussing on the primary tasks. Most BPO companies provide services in several time zones, resulting in smooth 24/7 functioning.

What are the different types of BPO services?

Mainly, there are three types of BPO (Business Process Outsourcing) services: Nearshore Outsourcing, Offshore Outsourcing, and Onshore Outsourcing. In Nearshore Outsourcing, the company outsources its work to neighboring countries due to advantages like cultural alignment, reduced cost, less rigid regulatory laws, and similar time zones. In Offshore Outsourcing, the work is allocated to far-off foreign countries because of reasons like cheaper labor costs, skilled workforce, and flexible business policies. In Onshore outsourcing (domestic outsourcing), the work is outsourced in the same country but to different provinces or states. The main reasons for onshore offshoring are to access a larger pool of talent, easy communication, protecting IP ( intellectual property), and low operational costs.

The following are the most commonly outsourced BPO services:

  • Back Office Services :
    Back Office Services handle non-customer-facing tasks such as data entry, content moderation, eCommerce tagging, etc. It is an essential service for any organization. It is advantageous to outsource back-office services since the service provider can consistently provide the necessary maintenance and supervision for data. They offer tailored solutions to meet your unique needs and can also adjust their solutions to ensure optimal outcomes.
  • Call Center Services :
    The need for businesses to offer excellent customer service has led to the establishing of multi-channel contact centers. However, managing multiple customer communication channels in-house can be quite expensive. Many companies choose to outsource their call center services to offshore partners instead of investing in their in-house facilities, equipment, and technology. By doing this, the service provider can assemble a team of experts to manage various client needs, increasing customer satisfaction. Moreover, these call center agents are trained to handle high-volume periods, both inbound and outbound.
  • Chat Services :
    With most businesses moving their operations online, it has become essential for organizations to have a live chat customer support system in place. However, managing an in-house chat operator can prove to be an expensive and tiresome affair. To tackle the vast chat requests, businesses can outsource their chat services to dedicated and experienced chat operators. Live chat solutions eliminate the wait time, enabling customers to connect directly with representatives and resolve their queries efficiently. This, in turn, will encourage clients to do more business with the firm.
  • Lead Generation :
    Lead generation plays a crucial role in sales and marketing. When a company partners with a reliable and skilled lead generation firm, their sales team can focus on closing deals instead of wasting time chasing unproductive leads. Moreover, the sales team can work more efficiently with qualified prospects, allowing them to save valuable time. Outsourcing lead generation to experts in sales can help expand the company's sales reach into new verticals.
  • Medical Billing :
    Medical billing can be a challenging task for many medical practitioners and hospitals who do not have access to a skilled workforce to perform billing tasks accurately. Outsourcing medical billing services not only saves time and money but also allows doctors to focus on providing quality patient care. Pharmaceutical billing companies employ experienced staff with the expertise to handle vast amounts of billing procedures and prevent errors. These service providers also ensure compliance with internal and external audits, ensuring all policies are followed.
  • Payment Processing :
    Maintaining an in-house payment processing system can be a costly and time-consuming affair. Upgrading payment processing technology can help businesses make informed financial decisions. By outsourcing payment processing services to a trusted firm, businesses can increase security measures with specific protocols to protect financial information from fraud, such as cyber theft.
  • Technical Support :
    Many businesses choose to outsource their technical support needs, including web hosting, cloud-managed services, server management, and infrastructure services. This helps to reduce the costs associated with hiring and training IT staff for support operations. Additionally, organizations can benefit from access to cutting-edge technology and experienced technicians the service partner employs.
How do I choose the right BPO company for my business?

To choose the right BPO company for your business, you must consider the following factors;

  • Assess and summarize your in-depth business needs, including goals, functions, quality requirements, data security, timelines, time zones, budget, limitations, etc.
  • Research on the latest market trends and business process outsourcing companies.
  • Assess your location preferences for BPO service providers to ensure time-zone compatibility for better communication.
  • Leverage renowned listing platforms like GoodFirms to get the list of the top BPO companies; filter the list for relevant parameters, including location, services, industry, company size, reviews, and pricing.
  • Contact the shortlisted BPO firms to evaluate their experience, expertise, and communication skills.
  • Negotiate your other requirements, terms, and conditions.

Finally, compare the top business process outsourcing companies for their skills, experience, client testimonials, ratings, time-zone compatibility, and pricing to choose and hire the best BPO company for your business.

What are the risks associated with BPO, and how can they be mitigated?

There are many risks associated with BPO, including wrong supplier selection, inappropriate knowledge transfer, vague task description, lack of experience with the BPO company, hidden costs, loss of control over the process, and data security breaches. To mitigate these risks. You must follow certain practices such as:

  • Shortlist the right service provider from reliable sources.
  • Discuss with the BPO company about the data management and security measures. 
  • Go through the service contract and confirm any hidden costs.
  • The contractual agreement must have all the clauses that are necessary for transparent business.
  • Opting for secure data transfer measures to ensure data integrity.
Are BPO services only suitable for large-scale businesses or corporations?

BPO services are not only suitable for large-scale enterprises or corporations, but it is also beneficial for startups, small and medium businesses. Business process outsourcing services can bring a gamut of benefits to all sizes of businesses by freeing up internal resources, saving time, enabling access to skilled talent, reducing operational costs, and so on. However, it is recommended to analyze various factors like budget, goals, legal compliance, and business risks before outsourcing the services to a reliable BPO company.

How does the BPO service provider company ensure data security and confidentiality?

Reputed business process outsourcing service providers safeguard their client’s sensitive and confidential data by following strict security protocols. Most BPO services companies take the measures by investing in the right security infrastructures, hardware security, software security, and backups to protect the data from outages and data breaches.

How much do I have to pay a BPO company for their services?

The cost to hire a BPO company varies depending upon the type of services opted for and the load of business functions involved. Also, the charges can be per hour basis, per user basis, per project basis billed monthly or annually. Typically, the charges for general customer support outsourcing could be around $15-$25 per hour, lead generation outsourcing costs around $20-$60 per lead, market research outsourcing costs around $5,000-$20,000 per project, etc. A detailed conversation with the BPO company will help you understand the overall costs of outsourcing services.

How does GoodFirms provide a comprehensive list of BPO service companies?

GoodFirms is a widely recognized B2B listing, review, and ranking platform that showcases software and service companies in various categories worldwide. The platform follows a systematic evaluation process to identify, list, and rank the service providers and provide a comprehensive list of BPO service companies for businesses to make informed decisions on numerous parameters, including:

  • Services they offer
  • Experience of the BPO service companies and their project portfolios
  • Quality of services
  • Pricing
  • Authentic user reviews

To hire the right BPO service providers for your business, you can refer to the GoodFirms list of the best BPO companies. Filter the list based on location, industry, services, company size, pricing, reviews, and ratings to shortlist the perfect business process outsourcing company for your next project.