5 Types Of Business Process Outsourcing


One of the key reasons a company outsources its business processes is to save a significant amount of money and hire professionals who can do the tasks more effectively and efficiently. Outsourcing has been rapidly growing in the US, with almost 300,000 jobs being outsourced annually. Business process outsourcing has various subcategories that further define why they are being done more and more recently; these include:

Back-Office Outsourcing

Back-office business process outsourcing is all the services that do not involve direct interaction with customers. These services include human resources, accounting bookkeeping, and data management services.

Recently these back-office services have also been further divided into more subcategories. There is Legal Process Outsourcing (LPO) for legal advice, and there’s IT-Enabled Services (ITES) for IT analysts. Outsourcing these tasks enable the business to focus on their core operations rather than spending money and time training individuals to do these tasks.

Front-Office Outsourcing

The services require customer interaction and include tech support, customer services, sales, and marketing. You should outsource front-office operations to companies that specialize in dealing with customers and can handle situations far efficiently than the company itself.

Offshore Outsourcing

A person talking on a phone

This BPO refers to business activities being outsourced overseas. This is a great way for businesses to cut costs because they can do that by saving on taxes, using cheaper raw materials, and benefiting from lower labor costs. Many companies outsource their customer services department overseas; this helps them get the services at a significantly lower rate that leads to reduced overhead costs.

Nearshore Outsourcing

Nearshore BPOs involves hiring service providers near your geographical positioning. This means that if you’re a US-based business, then Mexico, Canada, and Central America are considered nearshore. When businesses look for nearshore BPOs, they take account of time zones and language proficiencies on top of cheap labor costs and raw materials.

Onshore/Domestic Outsourcing

Onshore or domestic outsourcing is finding local outsourcing companies that help you with the processes. If you’re looking for an outsourcing services provider, then take a look at what we offer. We offer data entry services, bookkeeping services, data conversion solutions, and data digitization services to businesses.

Our team consists of people with years of accounting experience in various industries. They have knowledge of both domestic and international accounting standards so you get an experienced accounting professional at a very reasonable price just by contacting us.