types of bpo, 7 Types of BPO Services

types of bpo

7 Types of BPO Services You Need to Know

Business process outsourcing (BPO) is a popular strategy for companies that want to reduce costs, increase efficiency, and focus on their core competencies. BPO involves delegating some of the non-core functions of a business to a third-party provider, who can perform them more effectively and at a lower cost. BPO services can cover a wide range of activities, from customer service and accounting to marketing and human resources. In this article, we will explore the different types of BPO services and how they can benefit your business.

1. Customer Service BPO

Customer service is one of the most common and essential functions that businesses outsource. Customer service BPO involves handling customer inquiries, complaints, feedback, and support through various channels, such as phone, email, chat, social media, etc. Customer service BPO can help businesses improve customer satisfaction, retention, and loyalty, as well as reduce operational costs and increase scalability.

2. Back Office BPO

Back office BPO refers to outsourcing the administrative and operational tasks that support the core functions of a business. These tasks may include data entry, data processing, data analysis, document management, accounting, payroll, billing, inventory management, etc. Back office BPO can help businesses streamline their workflows, enhance their data quality and security, and save time and money.

3. Front Office BPO

Front office BPO refers to outsourcing the functions that involve direct interaction with customers or clients. These functions may include sales, marketing, lead generation, appointment setting, telemarketing, etc. Front office BPO can help businesses boost their revenue growth, expand their market reach, and improve their brand awareness and reputation.


IT BPO involves outsourcing the information technology functions of a business to a specialized provider. These functions may include software development, web design, web development, mobile app development, cloud computing, cybersecurity, network management, etc. IT BPO can help businesses access the latest technologies and expertise, enhance their innovation and competitiveness, and reduce their IT costs and risks.

5. Knowledge Process Outsourcing (KPO)

KPO is a subset of BPO that involves outsourcing the high-level and complex knowledge-based functions of a business to a highly skilled and qualified provider. These functions may include research and development, business analysis, market research, financial analysis, legal services, medical services, etc. KPO can help businesses gain valuable insights and solutions, improve their decision making and performance, and leverage the intellectual capital of the provider.

6. Legal Process Outsourcing (LPO)

LPO is another subset of BPO that involves outsourcing the legal functions of a business to a specialized provider. These functions may include contract drafting and review, litigation support, document review and discovery, patent services, compliance services, etc. LPO can help businesses reduce their legal costs and risks, access global talent and expertise, and improve their legal efficiency and quality.

7. Human Resource Outsourcing (HRO)

HRO involves outsourcing the human resource functions of a business to a professional provider. These functions may include recruitment and staffing, training and development, performance management,
compensation and benefits administration, employee relations, payroll processing, etc. HRO can help businesses improve their employee engagement, retention, and productivity, as well as comply with the labor laws and regulations of different countries.

As you can see, BPO services can offer many advantages for businesses of all sizes and industries. By outsourcing some of the non-core functions of your business, you can focus on your core competencies and strategic goals, while leaving the rest to the experts.
However, before you decide to outsource any function, you need to carefully evaluate your needs, expectations, and budget, and choose a reliable and reputable BPO provider that can meet them.

Types of BPO and Global Demand

Business process outsourcing (BPO) is the practice of hiring another company to perform a process that your own business needs to operate. BPO can help businesses reduce costs, improve efficiency, and access specialized skills. There are two main types of BPO: back-office and front-office.

Back-office BPO refers to outsourcing tasks that deal with the internal functions of a business, such as accounting, payroll, billing, human resources, or quality assurance. These tasks are essential for the smooth operation of a business, but they do not directly interact with customers or generate revenue.

Front-office BPO refers to outsourcing tasks that involve customer-facing activities, such as marketing, sales, customer service, or technical support. These tasks are crucial for building and maintaining customer relationships, brand awareness, and customer satisfaction.

According to a report by Grand View Research, the global BPO market size was valued at USD 232.32 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2021 to 2028. The report attributes this growth to several factors, such as:

  • The increasing adoption of cloud-based and digital services by businesses to enhance their productivity, efficiency, and customer experience.
  • The rising demand for outsourcing services from emerging markets, such as Asia Pacific, Latin America, and the Middle East and Africa, due to their low labor costs, large talent pools, and favorable government policies.
  • The growing need for outsourcing services in various industries, such as healthcare, banking and financial services, retail, manufacturing, and telecommunications, due to their complex and dynamic business processes.
  • The emergence of new technologies, such as artificial intelligence (AI), robotic process automation (RPA), blockchain, and analytics, that enable BPO providers to offer more value-added and innovative solutions to their clients.

Some of the leading BPO providers in the world are Accenture, IBM, Cognizant, Genpact, TCS, Wipro, HCL, Capgemini, Infosys, and NTT Data.





What is BPO? BPO Examples, Categories, Types and Benefits. – NextProcess

What Is Business Process Outsourcing (BPO)? – Investopedia






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