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HomeFacts, Myths and Benefits of Business Process Outsourcing

Facts, Myths and Benefits of Business Process Outsourcing

Business Process Outsourcing is a highly advantageous and beneficial step for a business to take. However, there is a lot of confusion and misunderstanding about the topic of Business Process Outsourcing. Read on for a full guide on the facts, myths, and benefits of BPO:


Business Process Outsourcing and Outsourcing are often confused although they are quite different concepts. Business Process Outsourcing is where a business hires for a specific business function, so a team or individual will be hired on a contract basis to fulfill an entire role. This can be anything, from development to customer service or marketing. Whereas Outsourcing is when a business hires a team or individual for a one-off function, job or task. This resource may be used again in the future, however, for the purposes of the operation, they are only used for a small and finite amount of time, until a job is finalised.

There are actually three types of Outsourcing:

Offshoring: This is where Outsourcing, or Business Process Outsourcing, is done in a different (and often far away) country.

Nearshoring: Instead of a far-off country, nearshoring accounts for any Outsourcing that takes place in a neighbouring country, for example, an Australian business outsourcing a job to a team in New Zealand.

Onshoring: This type of Outsourcing takes place within the home country of the business in question. This can be interstate or in entirely different areas of the country.


The most common myths regarding dream Business Process Outsourcing include

Your data is not as safe: This is a very common misconception however, it is a myth. Data and information are passed around in companies through technology every day, and it is no different in the instance of Business Process Outsourcing. Your talent team will most likely be experienced in handling sensitive private data, and therefore caution will be applied rigorously. You can always take a few extra security measures and minimise the information shared with your BPO team if this is a big concern

You have less control: Depending on your involvement and managing style, you can have as much control over your outsourced talent or tasks as you like. There are many ways to ensure that consistent communication is maintained, ensuring that you know exactly what is happening and when. Investing in a platform or application where tasks and projects are hosted will secure your control and involvement in your BPO operation.

Communication is sporadic: Again, your levels of communication can be as thorough or fleeting as you like or allow. Your outsourced talent will know how to effectively communicate to ensure that productivity and task competition is maintained at an efficient rate, so be sure to engage with them and you can be sure that your communication will be stronger than ever.

Outsourcing is only for large corporations: This is a very usual belief although it is not factual in any way. Outsourcing is appropriate for large businesses, startups and everything in between! Small, newer businesses can benefit hugely from the lower costs, productivity and potential that Business Process Outsourcing can offer.


There are many, many advantages of Business Process Outsourcing, just a few benefits include:

Productivity: An Outsourced team who are working on specific business functions will be able to devote direct attention and time to a single task or job. This will increase levels of productivity and allow for higher output.

Profits: Business Process Outsourcing proposes huge potential for costly and profitable benefits. Offshoring and BPO allow for lower investment in talent and staff, without any reduced risks for lower quality work. With less cost on talent, businesses are free to invest in alternate areas of business growth and potential.

Flexibility: An Outsourced team has the benefit of flexible working and contact hours. Business Process Outsourcing enables a unit or induvial talent to work for a business when it’s needed. You can alter your talent resources in relation to the ebbs and flows of your company!

Business Process Outsourcing is an amazing benefit for any type of business!

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