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4 Advantages of Business Process Outsourcing

Business Process Outsourcing (BPO) is outsourcing one or more of your business functions to a third-party service provider. It takes the load off your team and saves valuable time for your organization. The service provider becomes responsible for all of these business functions. You are just responsible for following up and managing the collaboration. These functions include but are not limited to software development, marketing, sales, talent requisition, data entry, customer services, server management, online privacy protection, or technical support. It is seen as a great opportunity for any organization that is looking to scale up and improve its performance. 

BPO covers a broad spectrum of business functions offering a company of any size to scale faster, acquire international talent, and improve efficiency by choosing a non-traditional working model. Let’s dig into the details:-

Types of BPO

As discussed above, BPO covers a broad spectrum of functions so it has been divided into 3 different types for understanding it better. Each one of these types deals with how the third-party service provider facilitates any organization.


When you outsource the business functions to any company located in your own country it is called Onshore BPO.


It is relying on any organization in any foreign country for different benefits like better talent, tax cuts, or lower cost of labor.


If you hire a company for your business tasks and it is located in a country that shares a border with your country the collaboration is known as Nearshore BPO.

Understanding BPO

It means that all of these types of outsourcing provide you the chance to work with talented individuals anywhere in the world. It gives you the freedom to choose a business partner that may be present in your city or even on a different continent. Not only you can benefit from international talent but you can also save your valuable investment. 

For example, during the first wave of Covid-19, there was an immense increase in e-commerce businesses around the globe. It was quite difficult for companies in Europe and America to stay operational due to strict lockdown regulations so they hired a number of development resources from South Asia. 

As the companies were already operating on a Work From Home (WFH) model so it was favorable to hire resources without any additional operational cost. BPO brings a sea of possibilities because you may be located in the United States and you can hire resources from the United Kingdom, Canada, or Pakistan. Cut out your logistics budget and build a relationship based on professionalism along with mutual trust.

Why Should You Consider BPO?

As an organization, you must be looking towards increasing your business’s efficiency and profitability while cutting the cost of doing business. BPO can prove to be an asset in this situation because it would help you save your capital funds for additional business ventures by cutting operational costs. 

With BPO, it becomes easier to focus on other core issues instead of worrying about the operations that can be outsourced. Target broader business goals while you leave multiple services to the international experts to drive innovation and state-of-the-art solutions. 

Let’s discuss the advantages in detail in the next section.

1. Save Operational Cost

Outsourcing the business operations offers financial savings because building an in-house team is way more expensive. For example, if we look at the IT services many countries in South Asia have amazing talent willing to work on an affordable budget especially when you consider the whole currency conversion rates. 

There is no need to pour money into infrastructure as your business partner would be responsible for providing the necessary equipment and services to its employees. You get unique ideas from offshore talent to build innovative solutions favorable for the global community. 

This increases efficiency, performance, and accelerates your delivery time because you can create a 24 hours working model due to the difference in time zones across the globe. Find out the countries with the top-notch talented individuals for various tasks and create the best possible working combination without worrying about visas or work permits, etc. You can either hire the resources or an organization on a monthly, bi-weekly, or hourly basis. It really depends on what works for you and whether you want a long time working relationship or is it just a one-time job.

2. Hire International Talent

Imagine having the chance to work with people from different countries and regions of the world. You would get out-of-the-box solutions for various problems and a global point of view along with unique skills. An international team is favorable for creating universally applicable applications. You can also benefit from unique skill sets that may not be common in the local market. 

Expand your talent acquisition by taking it to the next level and cut your operational cost as well. This is your chance as an organization to become a global leader in the market. 

Remember that a global workforce is a future so you must invest in.

3. Gain Competitive Advantage

As a business, you have to compete in a fiercely competitive market. Hundreds of thousands of companies are working in every niche and you need a competitive advantage with out-of-the-box thinking. When you are saving your operational cost and getting assistance from an international talent pool you can become a trendsetter in any market. The experience of professionals from different parts of the world gives you a unique perspective. 

The understanding of international business trends would give you ample time to create solutions for global problems that would mean more revenue for your organization. You would be able to cater to a wider audience’s needs, giving you a head start that isn’t available to your competitors unless they follow the same path. Not only you would be able to increase your organization’s revenue but you would be able to expand your operations and services to the international community. A multi-cultural and multi-national team would also improve the image of your company and the new clients would trust you instead of any other option.

4. Risk Management

When you are handling an in-house team you are completely dependent on them and you have to take care of all the operations. In this scenario, if at a crucial moment an important resource leaves you’ll have to scramble to find a replacement. For example, if the Human Resource Manager quits it would create quite a void in your organization and there wouldn’t be any other option than choosing the next best candidate. 

Such decisions aren’t beneficial for any organization and they can be avoided by outsourcing the business operations. In this way, the 3rd party service providers become responsible for their part of the work and you don’t have to worry about the continuity of operations. It brings a certain level of consistency and the operations are completed smoothly without any interruption.

Outsourcing business operations take the load off your team and you just have to provide requirements and insights instead of performing the tasks on an everyday basis. All you need is the daily or weekly reports to evaluate the performance and figure out whether the service provider is on the right path or not. As an organization, it would become possible to work towards acquiring new projects and building new products without having to disturb the regular workflow.


Considering the future of your organization depends on it, saying that choosing to outsource business operations is a straightaway decision would be wrong. It is suggested to take your team in the loop before making any decision. A trusted outsourcing partner is vital in any type of outsourcing scenario and Intagelo has been a reliable world-class BPO services provider for its global clientele. With over 16 years of providing outsourcing services, we understand how to cater to the unique needs of every customer. Users can reach out to us for free consultancy anytime.


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