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Glossary

What is BPO Industry?

The BPO industry comprises companies that provide outsourcing services. BPO means business process outsourcing. The BPO industry’s prevalence began two decades ago when customer-centric companies were evolving exponentially. The companies were spending a lot of time dealing with the concerns and queries of their customers. Though customer handling was an integral part of every company, it required a lot of time


The companies were in a dilemmatic situation as they were not able to manage the two most critical business operations at once - customer department and intrinsic business operations. This requirement led to the emergence of third-party agencies that offered to take over the customer support division for client companies. Not just support but also offered guaranteed results for improving the customer experience and satisfaction. 


Purpose of BPO Services


Every BPO agency exhibits a special area of expertise and respective skillset. Business operations can be bifurcated into external and internal activities - Front Office Operations and Back Office Operations. Front office operations involve customer service, sales, and marketing operations; these are external factors of business operations. Back office operations involve legacy operations such as finance, accounts, legal, HR, procurement, etc. 


The BPO industry has contributed a lot to the upliftment of many businesses across the globe. Companies hire BPO agencies for increasing the performance of front office operations and cutting down costs at the same time. These agencies have a pool of trained professionals and resources for effectively leading business operations. Earlier the business process outsourcing industry offered only a few services but it has expanded a lot lately. 


  • Hiring a BPO company allows the client companies to focus on their core business activities. Outsourcing mundane and menial tasks to a third-party agency ensure uninterrupted business operations with consistent productivity. 

  • Whenever a company is trying to expand its reach overseas, the most prudent way of doing it would be, hiring a BPO company. BPO companies usually have core expertise in the area of their services. 

  • Therefore, they provide a competitive edge in the area of business where the client company generally has little to no experience at all. Client companies would otherwise need to hire experts and assign in-house employees for the tasks. 

  • Sales and marketing departments are the most paramount areas of a company because they are responsible for generating revenues for companies. Therefore, they require a strong skillset, impeccable strategies, and absolute conviction. 

  • BPO agencies hiring outsourcing services in the areas of sales and marketing provide guaranteed results and return on investments. 


As we speak of the BPO industry on a global level, there are three types of BPO companies - nearshore, offshore, and local BPO companies. Companies from developed countries outsource their business operations to countries that are economically less expensive than them. For cutting down costs on a larger scale, companies from the USA, UK, and Australia hire BPO services from the countries like India, the Philippines, Africa, Singapore, etc. 


Conclusion: BPO industry has played a consequential role in the raising employment rate and productivity of companies of all levels. Moreover, the BPO industry has evolved a lot lately. They offer business outsourcing services for almost all types of businesses. The BPO industry is also a major contributor to the economical development of countries. 


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