Types of Outsourcing Services

Businesses today use different outsourcing services to maximize the resources of the company. Outsourcing is the method of looking for an external company or third party firm to work on minor services. Outsourcing services are categorized into two broad groups: BPO and KPO outsourcing.

What is Business Process Outsourcing?

The BPO or Business Process Outsourcing involves assigning a particular department to a third party employee. BPO work can either be a back office or a front office related job. Back office employees handle the internal operations of the vendor. They do not deal directly with the clients of the company. Some of the most common examples of back office departments are:

• Payroll Department
• Human Resource Department
• Accounting Department
• IT Services
• Data Entry

These jobs do not actually produce money for the company but they are as important as they are complicated. They are needed to keep the company organized and running. The front office employees are the ones that talk directly to the clients. They are better known as the Customer Service Representatives or agents. These agents answer calls and provide technical support to the customers. They also generate sales for the company.

What is Knowledge Process Outsourcing?

The KPO or Knowledge Process Outsourcing requires more professional employees as the type of work  call for a higher level of skills. KPO jobs basically involve advanced research in technology. This is the Research and Development department of the company. KPO workforce is of higher band than that of the BPO group as they make significant decisions for the improvement of the company.

The Popularity of BPO Companies

Between the two major outsourcing service categories, Business Process Outsourcing is the most popular move of business firms today. BPO companies are more commonly known as the Call Center Companies. Most often they are located offshore because of the savings that international firms benefit from them. You can find typically find BPO companies in countries in Asia and South America. The workforce from these countries offers quality service at a relatively low salary. Companies prefer offshore workers because they can get the same service at a cheaper cost.

With the competition in the global market getting tighter, enterprises are challenged in terms of adding value to their business and moving up the economic ladder. They need to make use of whatever and wherever resources they’ve got. As a result, they opt to take advantage of outsourcing services. Business Process Outsourcing and Knowledge Process Outsourcing is the most effective and most efficient way to run a business company today.