Types of BPO Services Explained

Outsourcing your business gives you the opportunity to focus on the more important aspects of running a business. Many firms have seen the benefits of outsourcing work so they can focus on the core of their business. Common services outsourced to BPO providers include payroll, accounting, telemarketing, data recording, and others.

According to Statista, the global market size of outsourced services amounted to $85.6 billion. In addition, 65% of firms that have outsourced in 2017 are likely to continue doing so. From startups to Fortune 500 companies, business process outsourcing continues to be in demand. What started out in the call center industry has extended to professional and technical services such as web design, human resources, and accounting. Businesses have different reasons for outsourcing:

  •         To decrease costs. With BPO, companies can cut down on in-house labor particularly for staffing and training and office space. Businesses need not worry about the potential costs for retaining local employees.
  •         To concentrate on key functions. Outsourcing allows you to focus on growing your business. Tasks like checking emails, monitoring payroll, and others can take you off your main job which is to concentrate on growing your business.
  •         To achieve better results in noncore functions. Most BPO companies specialize in non-core functions. Some of them may even deliver cutting-edge breakthroughs to their clients. For example, a gaming design company may not want to invest in the latest payroll software but an outsourcing company offering payroll services would likely invest in the said program.  
  •         To expand global presence. BPO companies allow businesses to serve customers in multiple languages around the clock so the local company doesn’t have to do it themselves.
  •         To enable flexibility. Companies that outsource noncritical functions are able to act more quickly and efficiently when managing risks associated with introducing new products or services. They can also delegate the more critical functions to their internal staff.
  •         Improve speed and efficiency. The outsourcing company can save time, improve accuracy, and increase their capacity. For example, a BPO company that specializes in records management can automatically index documents. The client therefore wouldn’t need to enter and store data manually.

Types of Business Process Outsourcing Services

BPO Services Based on Tasks

Business processing services can be divided into two main categories:

Back Office. Back-office tasks primarily deal with in-house necessities of a business. Examples of back office outsourcing include data management, data entry, payment processing, surveys, accounting support, and quality assurance. Back office tasks are essential to core business processes.

Front Office. Front office BPO includes tasks like email, telephone conversations, fax, and many other forms of interaction with consumers. They also include marketing and technical support.  

Vertical. Vertical services are the fastest growing segment in the outsourcing industry because it provides another avenue for business to roll out new service offerings or products. It allows small to medium sized businesses to integrate competencies of their outsources, suppliers, and others into their model.

Horizontal. Horizontal services are offered by BPO companies to industry-specific niches. For example, the BPO company may provide inbound call center support, email, chat, data entry, forms processing, and others to the banking and financial services industry.

Types of BPO according to location   

There are three types of BPOs based on location:

Onshore Outsourcing

In onshore outsourcing, you hire a BPO company that is based in the same country where you are doing business. For example, you are a Chicago-based company that hired a Florida-based BPO for certain work requirements. Onshore companies operate in the same time zone or within a few hours of your business operations.

Offshore Outsourcing

Outsourcing to an offshore BPO company is the least expensive option because the outsourced firm is located across the globe. For example, a Canadian electronic firm outsources a Philippine-based company to perform some of their non-core tasks. One disadvantage of offshore outsourcing is the difference in time zone. Aside from that, you will have to deal with cultural differences and also there may be different accents. This is the most common type of outsourcing.

Nearshore Outsourcing

In nearshore outsourcing, you hire a company that is located in countries near your own. An IT company based in the United States will outsource work to a BPO provider in Canada, Mexico, or Central America. Employees in these countries speak English as a first or second language and may already understand the culture reasonably. They may not be as expensive as onshore outsourcing and the time zone may be closer.

Local Outsourcing

Local outsourcing is the ideal option. The BPO company is located within your city or driving distance so you would be able to meet the manager or team, review the operation yourself, and conduct onsite visits. While this is the ideal scenario, local outsourcing is also the most expensive option. With this type of outsourcing, you will have to shoulder the rental fees and the payroll of your employees.

Which Outsourcing Type Is For You?

Outsourcing has taken off in the last few years. Working with a BPO company can help you streamline your business. 31% of companies outsourced tasks to free up their internal resources. But choosing a BPO provider is not easy as you think it is. Here are some tips on how to choose the right BPO service for you,

Define your goals

To choose an outsourcing service, you first need to set your goals. Having vague expectations such as increasing profits won’t usually give you the best results. As much as possible, keep your goals realistic and make sure that your objectives and strategies are understood by your partner.

Choose an established partner

The key to the success of your outsourcing business depends highly on the experience of your partner. When looking for a partner, do not hesitate to get information about the customers they have worked with or the number of projects they have managed. This will help you decide whether the BPO company is worth partnering with. Also, check their references and don’t be afraid to ask the “hard questions.”

Inspect Access to Communication, State of Technology and Infrastructure

What technology and innovation can the provider offer? Do they have access to communication channels—whether email, phone lines, or instant messaging? Are they using the latest equipment and are they working properly?

Check Cultural Compatibility

The success of your business will also depend on how your partner understands your company culture or personality. This includes how your employees communicate with each other, how frequently they interact with each other, or the way they work—alone or with a group.

Check Technical/Project Competence

Next, you also need to know the technical expertise and project experience of your potential BPO provider. Knowing the processes and methods they implement will give you a clear idea of how the provider will handle your project. 

When choosing the type of BPO, you should consider one that will look after your welfare. Consider the 5 tips above to help you decide on the right BPO service you will choose.

Why Choose airisX as Your BPO Provider?

airisX BPO services will help provide you with more time to work on your business, more productive use of your time to grow sales, more profit due to decreased expenses, and the freedom to focus on what is most important, whether that is making better products and services, or spending a holiday away without worrying that the business is missing out just because you aren’t there. .

Contracting sites often times simply act as a middleman between you and your completed task or project. When you outsource your job to airisX, it is airisX that completes the task, not some pseudo-anonymous person. If you have issues with the output of your task, airisX is the directly contracted service provider, so we provide a comprehensive experience, rather than just arbitraging a complaint. Our clients have come to trust our ability and enjoy our much lower costs.

The airisX business process outsourcing transition and transformation processes are designed and managed by airisX Solutions Architects and Service Delivery Managers to be as stress-free for our clients as possible.


airisX has solutions for all sizes and types of companies. Getting started is as easy as scheduling a consultation with us, so go ahead and