So, what is the meaning of BPO? In this guide, we’ll explain what BPO is, why businesses may choose to outsource processes to third parties, and the different types of BPO, among other things.
By the end, you should have gained a comprehensive understanding of the topic, giving you the confidence to move forward with your BPO partnership.
What Is BPO in Simple Terms?
Business process outsourcing is the method of appointing a specialist to orchestrate a function of an organisation’s operations, typically as the organisation itself (a white-label approach).
At the Whistl Group, we act as a third-party logistics provider for processes such as inbound or outbound contact centre support, order fulfilment, product sampling, mail management and mail advertising.
Why Businesses Choose to Work with BPO Companies
So, why work with BPO companies? Businesses may benefit from partnering with third-party outsourcers for:
- Cost efficiencies
Businesses that outsource to BPOs can save on operational costs, from labour to infrastructure. By partnering with a third-party company, businesses can reduce in-house expenses without compromising on quality.
- Time savings
With the help of a third-party provider, you can save time on production and focus on other core business aspects, such as strategic growth and development.
- Scalability
Outsourcing to a BPO company offers the opportunity to scale your operations up or down, making it easy to adapt during peak periods and in response to changing market conditions.
- Access to specialist expertise
Some BPO companies have teams equipped with specialist knowledge and skills, enabling you to access talent that you may have failed to obtain within your in-house team.
What Are the Different Types of BPO Companies?
The business process outsourcing industry is diverse. Whichever industry you operate in, business model you deploy, or customer base you serve, there are expert providers to help you remedy operational challenges or strategic aims, catering for the following areas:
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Back-of-office operations (core business support functions), such as:
Supply Chain and Fulfilment
Product sourcing, manufacturing, inventory management, storage, eCommerce fulfilment, carrier management, tracking, and delivery support.
Finance & Compliance
Accounting, payment processing, regulatory compliance, and quality assurance.
Technology & IT
IT services and systems support.
People & Culture
Human resources, recruitment, and employee well-being.
Advisory Services
Business consultancy.
- Front-of-office operations, such as:
Customer Support
Technical support, product-related services, and inbound and outbound contact centre solutions.
Sales & Marketing
Sales representation and marketing agency services.
What Are the Benefits of Working with a BPO Specialist?
Outsourcing to a BPO provider isn’t just about cost savings. It’s a strategic move that allows companies to operate more efficiently and immerse themselves in the following benefits:
- Increasing customer acquisition or retention
A talented BPO team can support your company’s sales and customer service efforts with prompt and professional communication. With access to trained agents and innovative CRM tools, a BPO can efficiently nurture leads, reduce response times, and streamline the onboarding process, all of which can drive higher acquisition and retention rates.
- Minimising customer call centre waiting times
BPO companies can offer additional capacity to ensure your company’s customer support lines stay responsive, even during peak seasons. This means you can expect reduced wait times and quicker resolutions, resulting in enhanced customer satisfaction and loyalty.
- Increasing cross-sell and up-sell opportunities
Trained BPO agents can actively promote relevant products and services. By utilising data-driven insights and scripts, BPO specialists can offer tailored recommendations and increase the average order value through smart and timely engagements, ultimately enhancing your overall revenue.
- Avoiding overstocking or understocking
When inventory management or order fulfilment is outsourced to a BPO company, you can enjoy better forecasting, tighter operational control, and even real-time reporting. This ensures stock levels align with your company’s demand, effectively decreasing waste and lost sales. Additionally, BPOs can integrate with your systems to support smoother operations.
- Saving on costs
Other companies may be at a stage in their growth where they need to either invest in a new warehouse, expand their contact centre operations, or upskill their existing team on new product developments. Whether you have a strategic objective to meet or are at a critical stage of business growth, outsourcing with a BPO company is less capital-intensive because you typically only pay for what you use.
- Focusing on your own operations
Working with an outsourcing specialist also allows you to better focus on your own operational strengths, such as new product development, sales, and marketing (although some companies also outsource these elements). Many clients opt for a hybrid setup, in which the BPO complements the client’s own operations. This is particularly useful for firms that experience volatile demand throughout the year due to seasonal peaks in trading.
Potential Risks of Working with a BPO Specialist
Before outsourcing to a BPO company, consider the following challenges and how you will overcome them.
- Data storage
Working with a BPO means your customer or product data may have to be stored in other locations. As a result, your Data Protection Officer will have to ensure your customers are informed of this.
However, some specialists, such as BPO call centres, are flexible enough to work with your own cloud-based technology, including your CRM, order management system, or warehouse management platform.
- Customer experience inconsistencies
In rare cases, outsourcing can lead to degradation of customer experience or product quality. In these scenarios, your customers will likely notice a reduction in performance.
To avoid this, it makes sense to align expectations at the pre-contract stage and develop KPIs for your appointed BPO specialist that are specific, measurable, achievable, relevant, and time-bound (SMART).
What Are BPO Call Centres?
BPO call centres involve outsourcing customer service and other business processes to an external third party. These solutions help businesses like yours tap into top talent while slashing operational costs.
While BPO call centres are managed by a specialised third-party provider that oversees specific business functions, traditional call centres adopt in-house operations, which the company itself directly manages. BPO call centres often provide flexibility and cost efficiencies by reducing overhead. In contrast, traditional call centres enable businesses to enjoy more control over their operations, albeit at a higher cost and with reduced flexibility.
Types of BPO Call Centres
BPO call centre operations are typically divided into two main categories: outbound and inbound solutions. Let’s take a look at each in more detail.
Outbound BPO call centres are primarily focused on initiating contact with customers, often for sales, telemarketing, and lead generation purposes.
Inbound BPO call centres concentrate on receiving and handling incoming calls from customers, often relating to general inquiries, technical support, and product management.
Pros and Cons of BPO Call Centres
BPO call centres come with numerous advantages and disadvantages that you should consider before deciding to invest.
The pros of BPO call centres include:
- Cost-effectiveness
Outsourcing to call centres with lower labour costs can significantly reduce overhead expenses and ensure you only pay for the services you require without investing in unnecessary infrastructure.
- Availability
BPO companies often offer 24/7 support, enabling you to address queries across various time zones in out-of-hours periods and meet customer service needs.
- Flexibility
BPO call centres give you the flexibility to scale up and down as needed without dealing with the hassle of hiring, training, and managing your own in-house staff.
- Productivity
By outsourcing customer service, your business can start to focus on core competencies, from product development to marketing strategy.
Cons of BPO call centres:
- Loss of control and consistency
When you invest in BPO call centres, this means you hand over control of the customer experience. If your BPO call centre fails to align with your company’s values or standards, this could result in a disconnect between your customers and your brand.
- Data security and privacy
When sensitive customer data is involved, there are risks associated with data security and privacy. You need to ensure your BPO company complies with security standards to prevent potential breaches, especially if your partner is located in a different country.
Find out more about BPO call centres.
What Are the Latest Trends in the BPO Industry?
The global business process outsourcing market size was valued at USD $302.62 billion in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 9.8% from 2025 to 2030.
BPO services are popular in the online retail, healthcare, IT, telecommunications, banking, financial services and insurance (BFSI) sectors. Out of all of the types of BPO, customer service represents the largest market share (30%), followed by finance and accounting and then human resources.
Due to rising overheads, enterprises are focusing on improving efficiency and are benefiting from the usage of cloud computing and artificial intelligence (AI).
Best Practices for Outsourcing to BPOs
If you want to reap some of the benefits that outsourcing your work to BPOs has to offer, it’s worth following these top tips to get started.
1. Choosing the right BPO partner
Before partnering with the first BPO company you come across, weigh up important factors such as reputation, scalability, and expertise, ensuring the company can align with your organisation’s values and requirements.
2. Outline objectives and expectations
Before outsourcing some of your business operations, it makes sense that you first consider which current pain points and/or future perceived challenges are leading you to want to work with a BPO. Outsourcing front- and back-office operations is a significant commitment and typically involves a minimum yearly contract.
Therefore, it makes sense to compare your company’s trajectory from profit, loss, and return-on-investment perspectives, using an in-sourced approach, with that of a shift to an outsourced approach.
Moreover, conducting CSAT/NPS customer satisfaction surveys and user group meetings can help identify gaps in service quality, which may cluster within a business function, indicating that this is the operational area that needs improvement.
Once you’ve identified your goals, clearly outline them before signing a contract with the BPO provider. This should prevent performance challenges later on.
3. Maintain communication
Communication shouldn’t stop at the initial onboarding. Regular, open communication is critical for managing an outsourced team most effectively. Schedule check-ins and feedback meetings if necessary.
4. Invest in training
Investing in your BPO provider’s training and knowledge of your business processes and customer expectations is a must. A well-trained BPO team will be more likely to handle your customer service processes in a way that aligns with your standards.
5. Consider location
Another variable to consider is the location of the BPO company. It could be an onshore setup (the BPO is based in your country), an offshore setup (based overseas), or a near-shore setup (in a neighbouring country).
Companies may wish to work with an overseas third-party outsourcing specialist to lower labour costs, benefit from tax savings, minimise cross-border red tape, or leverage a culture’s core competency.
What Makes the Whistl Group Unique as a BPO Provider?
The Whistl Group offers a diverse portfolio of outsourced operations solutions for eCommerce retailers, the public sector, and various other industries, including BPO call centre services and end-to-end logistics. From customer data handling to order fulfilment and delivery management, Whistl can help you enhance your customer experience.
Get in touch with our team today to learn more about what the BPO process is, the meaning of BPO, and what Whistl’s business process outsourcing solutions entail.
Updated July 2025
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