{"id":5553,"date":"2021-03-08T00:42:26","date_gmt":"2021-03-08T00:42:26","guid":{"rendered":"http:\/\/mvp.net.ph\/stagingmvp\/?p=5553"},"modified":"2021-03-08T00:42:26","modified_gmt":"2021-03-08T00:42:26","slug":"how-bpo-works","status":"publish","type":"post","link":"http:\/\/mvp.net.ph\/stagingmvp\/how-bpo-works\/","title":{"rendered":"What is BPO &#038; How Does it Work?"},"content":{"rendered":"<blockquote><p><span style=\"font-weight: 400;\">Business process outsourcing (BPO) is the practice of contracting a specific process or processes to an external service provider.\u00a0\u00a0<\/span><\/p><\/blockquote>\n<h3><\/h3>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Why Do Businesses Offshore Processes?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Businesses outsource (or offshore) processes for a number of reasons, with \u2018improvement in cost level or reduction\u2019 being recorded as one of the most popular reasons. <\/span><a href=\"https:\/\/www.smartsheet.com\/everything-you-need-know-about-business-process-outsourcing\"><span style=\"font-weight: 400;\">Smartsheet<\/span><\/a><span style=\"font-weight: 400;\"> identifies some other reasons in which a BPO can benefit your business. These include:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Increasing efficiency and reducing costs: <\/b><span style=\"font-weight: 400;\">Offshoring business processes enables your business to utilise and reallocate your limited resources effectively. Your business can also benefit from having a highly skilled team external to your business, without the cost and inconvenience of recruiting and training new staff. Offshoring business processes also enables your business to act more efficiently when managing risks associated with introducing new products or services.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Focusing on key business functions: <\/b><span style=\"font-weight: 400;\">Partnering with a BPO company allows you to focus your efforts on your core business offerings &amp; activities.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Driving growth: <\/b><span style=\"font-weight: 400;\">Utilising your BPO company experience and expert knowledge can drive growth within your business and enables you to focus your resources on core business processes such as <\/span><a href=\"https:\/\/www.yourdms.net\/blog\/how-your-business-can-benefit-from-business-process-outsourcing\/#:~:text=BPO%20allows%20you%20to%20drive,and%20services%20to%20your%20customers.&amp;text=BPO%20providers%20can%20offer%20expert,support%20to%20assist%20this%20process\"><span style=\"font-weight: 400;\">developing new products and services, exploring new revenue streams, diversifying into new markets<\/span><\/a><span style=\"font-weight: 400;\">, etc.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><b>Expanding global presence: <\/b><span style=\"font-weight: 400;\">offshoring companies can often service customers in multiple languages, around the clock, ultimately providing another means of support.<\/span><\/li>\n<\/ul>\n<h3><\/h3>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">How Does BPO Work?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While you might be clear about your reasons for offshoring, it\u2019s important to take the time to carefully consider which are the right processes to offshore. According to <\/span><a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/strategy\/business-process-outsourcing-bpo\/\"><span style=\"font-weight: 400;\">Corporate Finance Institute<\/span><\/a><span style=\"font-weight: 400;\">, your business can contract with BPO vendors in two main areas: front office and back office.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The front office represents the customer-facing function of a company. Dynamic Business Outsourcing Solutions states that it is composed of individuals who possess diverse skills with people and communication. These functions typically include Marketing, Sales, Customer Relations, Grievance redressal, etc.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Back office services often refer to internal business processes or \u2018behind-the-scenes\u2019. These functions typically include data entry, content writing, IT services, HR, Accounting Support, Payroll Services, AI Training, Software Development, etc. Businesses often offshore back-office services to assist in their sustained growth and development. These services are often considered the backbone of businesses as it provides support to the front office people.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Types of BPO<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">BPO companies can be divided into several types based on their location:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><b>Onshore outsourcing (Onshoring)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Onshore outsourcing, also known as domestic outsourcing, is the obtaining of services from an external company but within the same country. The purpose of onshoring is to transfer non-essential activities that still hold business value but are not part of the core business functions.<\/span> <span style=\"font-weight: 400;\">Onshoring enables a higher level of control and closer contact between the two companies. However, depending on the work involved, it can come at a higher cost in comparison to other outsourcing options. Onshoring offers a number of advantages:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ease of Communication:<\/b><span style=\"font-weight: 400;\"> The ability to communicate with ease tends to be the most obvious benefit.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Savings<\/b><span style=\"font-weight: 400;\">: This is undoubtedly one of the largest reasons for outsourcing business processes to an external company.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Greater quality control:<\/b><span style=\"font-weight: 400;\"> Onshore outsourcing enables greater control over the quality of output. You can extend an invite for in-person meetings and physical demonstrations.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><b>Nearshore outsourcing (Nearshoring)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Nearshore outsourcing or nearshoring, refers to outsourcing processes to a nearby country, preferably a neighbouring one or one that\u2019s on the same continent. Nearshoring allows for greater control and closer contact between two companies at a reduced cost. Other nearshoring advantages include:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Similar time zones: <\/b><span style=\"font-weight: 400;\">by remaining nearshore, business hours will typically be very similar, if not the same. Therefore, it\u2019s much easier for teams to communicate and get a response in a timely manner.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Smaller cultural divide<\/b><span style=\"font-weight: 400;\">: most nearshore countries have friendly ties and there is typically more familiarity with each other\u2019s culture and language barriers.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Easy travel<\/b><span style=\"font-weight: 400;\">: a greater opportunity for one on one, in-person meetings.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h4><b>Offshore outsourcing (Offshoring)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Offshore outsourcing or offshoring, is the process of transferring key areas of your business to countries with lower labour costs but equal expertise, like the Philippines. Offshoring offers many advantages:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost reductions of up to 75%:<\/b><span style=\"font-weight: 400;\"> By partnering with an offshore company your business can save up to 75% in overhead costs.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Concentration on core business functions:<\/b><span style=\"font-weight: 400;\"> Partnering with a BPO company allows you to focus your efforts on your core business offerings &amp; activities.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increase in productivity:<\/b><span style=\"font-weight: 400;\"> By offshoring non-essential tasks, your company can improve its productivity in a number of ways. Your company can focus on its core functions, cost savings can be re-purposed to business development programs, and your company can delegate tasks that require higher and more technical competencies without compromising its budget. Your company can increase its production output and not incur significant changes in its cost of operations.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Save on Infrastructure and Technology:<\/b><span style=\"font-weight: 400;\"> Offshoring eliminates the need for investment in infrastructure as your offshoring partner takes the responsibility for the business processes and hence develops infrastructure for the same.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Establish\/expand a global presence: <\/b><span style=\"font-weight: 400;\">Offshoring gives your business the opportunities to reduce costs of operation and offer your products\/services directly in a foreign market.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Making The BPO Decision<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">BPO can help support growth, improve efficiency and provide significant cost savings when handled correctly. Offshoring, in particular, offers tremendous benefits to businesses. While selecting the right functions to outsource is important, it\u2019s just as important to choose the right outsourcing partner. At MVP, our primary goal is to connect small, medium, and large companies with highly skilled offshore professionals for the purpose of reducing overhead costs by up to 75% and increasing scalability. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"http:\/\/mvp.net.ph\/stagingmvp\/contact-us\/\">Talk to our team of professionals today!<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business process outsourcing (BPO) is the practice <\/p>\n","protected":false},"author":1,"featured_media":5555,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[19],"tags":[],"_links":{"self":[{"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/posts\/5553"}],"collection":[{"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/comments?post=5553"}],"version-history":[{"count":8,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/posts\/5553\/revisions"}],"predecessor-version":[{"id":5563,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/posts\/5553\/revisions\/5563"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/media\/5555"}],"wp:attachment":[{"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/media?parent=5553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/categories?post=5553"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/mvp.net.ph\/stagingmvp\/wp-json\/wp\/v2\/tags?post=5553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}