What is Business Process Outsourcing and How Does It Work?

What is Business Process Outsourcing and How Does It Work?

There are many costs you have to take into account if you own a business. One of the most significant expenses comes with hiring and keeping your employees. 

For companies that want to have a cost-effective and flexible solution, business process outsourcing or BPO is the answer.

What is Business Process Outsourcing?

BPO is a business strategy where a company hires another company to perform tasks for them. This strategy can also be called labour outsourcing.

Companies choose outsourcing workers from business process outsourcing companies to save money and time performing tasks. 

The main benefit of outsourcing work is that you don’t need to spend money, time, and effort searching for the best candidates for the job. 

BPO companies have their own metrics to hire the most qualified workers.

Aside from that, you can expect the best quality of work promptly. 

One of the most significant advantages of working with a BPO company is that the workers will be focused on core activities, and thus, can make the turnaround time faster than hiring in-house employees.

Different Types of BPO

Types Of Bpo

There are three different main types of BPO companies. They are often categorised based on where they are located.


Most businesses choose overseas BPO companies for their lower labour costs. This is called offshoring or hiring companies from other countries. 

Sometimes, setting up your project across multiple countries would be a better option, especially if you need many workers.

However, there are specific challenges that you might face when dealing with an offshore BPO company. 

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One of the most common problems is the delay in delivery due to differences in time zones and holidays of the countries. 

You might also have problems with security and keeping confidential information safe since you need to rely on the internet for most transactions.


Alternatively, you can choose to hire an onshore BPO company that will give you the same quality but without the hassle and challenges that offshore BPO companies present.

While a great solution if you want to outsource work, you might not get the same advantages as an offshore BPO company. 

Since the same rules govern them, they will probably have the same wages, and you won’t cut costs.

Onshore business process outsourcing companies shine best if you want to hire employees that will give you quality work. Since they are more focused on their fields, it will be easier to find talented employees who can work on your project.


Nearshore is a mix of onshore and offshore. While the company is still outside your country, they are often nearer. Thus, you won’t have the same problems, such as extreme differences in time zones. 

There are nearshore companies that might even be in the same time zone as yours.

For example, if you are in Europe and want to work with a BPO company based in London, this is called nearshoring instead of offshoring. 

Your time zone and culture do not differ, and you might find it easier to work with them.

Nearshore is the best solution if you don’t want to deal with the problems that offshore outsourcing has. 

It also benefits from letting you cut costs, primarily if they are located in a country where you can lower the employees’ wages.

How Does BPO Work?

Reasons For Outsourcing

If you’re a company looking to outsource some work to a BPO company, you might be curious about how a BPO company works. 

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As mentioned before, they prioritise giving the best service to other companies. Here is a quick guide on how BPO companies work.

Hiring and Training Employees

It’s no secret that hiring and training employees cost a lot. This is one of the main problems that a BPO company aims to solve for you. 

Suppose you’re outsourcing company functions that are not tied to your core processes, such as data entry or audio & video transcriptions. 

In that case, you will find it more cost-effective to hire a BPO company. They hire their talents, train them, and prepare for work once they finish their training sessions.

Quality Assurance

Since BPO companies like Oworkers often hire experts in the field, you don’t have to worry about the quality of work that you will get. 

These companies often have their quality assurance testing and will only provide what passes your standard.


Since outsourcing involves entrusting one’s business to another company, BPO companies understand the importance of transparency. 

They will often ask about what you need to know when it comes to your business.

Managers will often be in touch with you and keep you up to date with how the project is going on their side. 

They will submit reports about the progress, and you can give feedback or suggestions to improve the transactions further.

Pilot Versions

If you are unsure if you want to outsource, you can contact the BPO company you want to hire and ask if they have pilot versions of their services. 

These versions can last a few months, and you can check if they are the right fit for your company.

During these pilot versions, you can get a feel for what you want. You can ask the manager in charge of your project to change certain things to improve the output further.

Flexibility and Efficiency

BPO companies are known for their flexibility and efficiency. As a company, you can still decide the metrics and standards that BPO employees should adhere to. This can make tasks easier for you, especially if you want to achieve specific goals.

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Aside from that, they also assure that they have a fast turnaround time. Many businesses hire BPO companies to make specific non-core work get faster results.


Big companies usually partner up with BPO companies to cut costs while still getting quality work. 

This is one of the most straightforward and efficient strategies to ensure that your business is going smoothly.

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