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BPO Full-Form: Top Secrets About BPO That Will Blow Your Mind

Umesh Kurmi is a semi-qualified Chartered Accountant from the Institute of Chartered Accountants of Nepal. He has seven years of experience.


BPO Full-Form & Its Meaning with Example

The Full-Form of BPO is Business Process Outsourcing. BPO is contracting out of a particular undertaking or part of a business to an outsider specialist organization. BPO is extremely beneficial for running and leading any organization.

Because, by using this service, a businessman may devote his complete focus to the core of his firm while contracting out the less vital aspects to a third party, making his job much easier.

Assume there is a software corporation whose duty is to create, maintain, and sell software.

This company has 1,000 employees in total, and it now needs a call center to provide technical support to its customers, where 200 individuals can address customer problems over the phone.

The company has two alternatives for this: either build its own space and hire people to operate in it as a call center or outsource their call center job on a contract basis to a call center expert company.

Here, you can see that the costs of constructing that software company's office, as well as the costs of employing and training personnel, are all saved, and some agency begins their call center operation with very little money.

Any association can profit from business process outsourcing saving both time and cash.

Many people mistake BPO with a call center, which it is not.

BPO incorporates a wide scope of services, large numbers of which are likewise technically oriented.


Top BPO Companies

  1. Accenture
  2. Cognizant
  3. IBM
  4. Wipro
  5. Genpact
  6. Infosys
  7. Concentrix
  8. Teleperformance
  9. Plaxonic Technologies
  10. EXL Service
  11. TCS
  12. Skyes
  13. ADP
  14. SunTec India
  15. OctopusTech Solutions

Goals and Objectives of BPO

Aside from prioritizing cost reduction, firms that outsource their business processes to BPOs also prioritize the following:

  • Improving process efficiency, resulting in shorter turnaround times and higher productivity
  • Emphasizing improving their core capabilities, such as conducting additional research and development on the company's USP, developing new products and services, and so on
  • Increasing and consolidating their global footprint, as well as acquiring new business territories and countries
  • Improved work quality can lead to fewer errors and greater accuracy
  • Lowered operating and overhead costs
  • Evolving business morals and tactical competitive leads

What Are the Types of BPO?

A. Established on Supply Chain and Services

1. Back-Office BPO

Back-office business process outsourcing entails contracting non-customer-facing services. IT, accounting, business process automation, human resources, quality assurance, and other services are among those offered. IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process Outsourcing (KPO), such as outsourcing an individual who understands and can implement/manage a certain program, are all subtypes of BPO. Businesses can focus on their primary goal by outsourcing these operations rather than investing in time-consuming and costly internal training and onboarding.

2. Front-Office BPO

Customer-facing services, such as tech assistance, customer service, sales, and marketing, are referred to by this word. Because of the technical knowledge requirements, these services are commonly outsourced and can be completed off-site. Businesses can profit from specialized people with unique knowledge and minimize expenses by outsourcing web development, customer support lines, or any front office services.

B. Established on the Vendor Location

1. Offshore BPO

When services are outsourced to another country, this is referred to as offshoring. This is encouraged by plentiful resources, political stability, cheaper labor costs, numerous tax breaks, and other factors. Companies that outsource their customer support divisions by contracting with call center suppliers all around the world are a common example. As a result, firms can obtain qualified labor and services at a reduced cost, lowering overhead costs and perhaps lowering product or service prices for end-users.

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2. Nearshore BPO

The act of engaging the services of vendors in geographically close nations is known as nearshore business process outsourcing. For firms in India, this might include Pakistan, Nepal, and China. This type of outsourcing occurs when specialized abilities are offered at a reduced cost in a nearby country, but certain factors, such as timezones or language proficiency, must be considered.

3. Onshore/Domestic BPO

Domestic outsourcing is exactly what it sounds like: the act of outsourcing and receiving services within a country's borders. In other words, a vendor in one city, state, or province can be hired to supply services to a company in another city, state, or province. This can be caused by a variety of variables, including the availability of specialist talents in specific places or regional variances in rates and expenses.


How Does BPO Work?

Business process outsourcing refers to the practice of contracting a certain work process or processes to an external service provider. The provider can be a local, nearshore, or offshore organization. Payroll, accounting, telemarketing, data recording, social media marketing, customer assistance, and other services may be provided.

Canon, for example, provides an integrated services delivery capability that enables bespoke solutions to be delivered onsite, offsite, and/or offshore.

Following an agreement, a service provider may subsequently manage duties such as claim or invoice processing, as well as workforce management obligations such as hiring, training, and maintaining personnel to maintain a team for the customer.

Providers are also often in charge of tracking staff performance and progress, as well as monitoring service level agreements (SLAs) for the job is done.

Providers, such as Canon, should ideally have competence in approaches such as Six Sigma to enable continuous process improvement.


Steps in Business Process Outsourcing

Review of BPO requirements, tender, critical examination, making an agreement, transfer of resources and responsibilities, governance, and transfer are the seven stages of training in Business Process Outsourcing (BPO). Each of the seven stages is discussed below in chronological order:

1. Review of BPO Requirements

This is the preliminary phase of outsourcing. The buying business does a detailed review of its sourcing requirements. This stage is frequently the most demanding because it entails drafting a project plan, identifying a leadership team, and restructuring training resources.

2. Tender

When a firm decides to outsource training services, it must determine which vendors have the capabilities to best meet its requirements. To obtain information from suppliers, the organization will develop and distribute at least one of the following documents to the external market: Request for Information (RFI), Request for Proposal (RFP), or Request for Quotes (RFQ) (RFQ).

3. Critical Examination

This is the process of obtaining and assessing information about each other's capabilities. This helps to establish a steady and organized relationship.

4. Making an Agreement

This stage is reached when both parties are ready to formalize their business connection with a written agreement. The organizations will negotiate the particular terms of their connection before signing a contract, which is often either a Master Services Agreement (MSA) or a Service Level Agreement (SLA) (SLA).

5. Transfer of Resources and Responsibilities

After contract execution, the two companies will start moving resources and obligations from the purchaser to the provider.

6. Governance

This stage is often the most time-consuming because it entails managing the firm and maintaining a working relationship over the contract's life.

7. Repatriation/Transfer

Repatriation, the final stage of outsourcing, entails the return of resources and obligations to the originating companies.


BPO Full-Form Interview Questions

1. Common BPO Interview Interrogations

It is basic for a questioner to have fundamental information about you to appropriately evaluate your true capacity. The following are some general interview questions that will assist the interviewer in understanding your personality and interests:

Introduce yourself.

What exactly is a BPO?

What is your shortcoming, and how are you attempting to recover it?

What is it that you need to be in 5 years?

Is it safe to say that you will fill in for late shifts and the end of the week?

For what reason do you accept this industry is ideal for you?

What do you hope to get compensated for?

Would you like to sign a bond?

What are your qualifications?

Why should we hire you?

Have you got any questions for us?

2. Experience and Background Interrogations

The questioner might pose you the accompanying inquiries to survey your experience and interest in the position:

What talents from your prior employment can you offer to this position?

You don't have a computer background; how well do you know how to use one?

What's the distinction between BPO and a Call Center?

Working at a BPO requires excellent communication skills. Give an example of when you have shown great communication abilities.

What do you mean when you say "outsourcer"?

Why do you believe businesses outsource their work to third-party service providers?

Why do you believe night shifts are essential in the BPO industry?

What characteristics must a person possess to work in BPO?

3. Exhaustive BPO Interview Interrogations

The following are some interview questions that an interviewer may ask to assess your in-depth understanding of the BPO industry:

Which is more agreeable for you, the telephone strategy or the web-talk approach, and why?

How might you deal with a call from a client when you don't have an answer for their concern?

What is the meaning of ISO:9000 in the BPO business?

What precisely do you mean by nearshore outsourcing?

How front-office is different from back-office outsourcing?

Provide some examples of incoming call center services.

Provide some examples of outbound call center services.

How would you handle an inbound customer call versus an outbound customer call?

Which is more useful for the BPO industry, customer service or technical support, in your opinion?

For more questions see FAQs

Advantages of BPO

  1. You Gain Access to More Experts
  2. Things Get Done Quickly
  3. You Can Concentrate on What Matters
  4. You Have the Option to Share Some Risk
  5. You Can Cut Costs
  6. You Have the Ability to Work Around the Clock
  7. You Can Make Project Management Easier
  8. You Make Work Relationships Easier
  9. Efforts Are More Focused
  10. You Gain Peace of Mind

Disadvantages of BPO

  1. You Have Some Loss of Control
  2. There are additional expenses.
  3. There are security concerns
  4. You decrease quality control.
  5. You both bear financial burdens.
  6. You run the risk of a public backlash.
  7. You Alter Time Frames
  8. It's Possible to Lose Focus
  9. Things can get lost in translation
  10. You may face moral quandaries




Business process outsourcing

Knowledge process outsourcing


BPO refers to the outsourcing of specific company tasks to third-party service providers.

The contracting of knowledge and information processes to third-party service providers is referred to as KPO.


Low degree of complexity

Complexity at a high level


Rule based

Judgment based


Cost arbitrage

Knowledge arbitrage




Employee Skills

Good communication and interpersonal skills

Professionally qualified and skilled workers


Non-core processes

Core processes



BPO is a contract between a firm and a third-party provider for services or business processes. It is a cost-cutting measure that enables businesses to outsource non-core tasks.

Manufacturing or back-office services like accounting, data entry, and human resources may fall under this category. Front-end services such as customer service and technical assistance are also included.


What is a BPO job?

BPO jobs are positions in corporations that supply businesses with outsourced services. Assume a company's sales department employs an IT agency to assist their personnel with potential computer problems. Here, the IT process is subcontracted to a third-party vendor.

Is BPO a call center?

BPO is not the same as a call center. A call center, on the other hand, can benefit from BPO. A business process outsourcing (BPO) call center is a group of outsourced agents who handle incoming and outgoing customer calls for other companies.

Is BPO a good job?

The thriving business process outsourcing industry is an excellent career path for recent grads and even management majors.

What is the uppermost salary in BPO?

In India, the highest income for a BPO job is INR 4.9 Lakhs per year (INR 40.8k per month).

Is BPO good for freshers?

Getting a job in BPO as a fresher is an excellent approach to get experience and create new skill sets that will be useful in the future. It is one of India's most well-known ventures. It is an industry where a novice can have a wide scope of choices concerning pay and information.

Is the BPO job easy?

Those possibilities are pretty easy to come by in the BPO industry. Aside from that, because most of the work here needs candidates to work in shifts, they receive gratis transportation between their houses and their place of employment.

Is the BPO job stressful?

Because BPO positions are highly demanding, especially after a few months in this business, many people resign and move careers, frequently to a lower-paying jobs.

Which BPO is best in India?

Here are the greatest BPO businesses in India that offer the best business outsourcing services and employ a large portion of the Indian people.

  1. Genpact
  2. Tata Consultancy Services
  3. WNS Global Services Private Ltd.
  4. EXL Service
  5. Wipro BPO
  6. Firstsource Solutions Ltd.
  7. Infosys BPO
  8. Aditya Birla Minacs Worldwide Ltd.

What is the qualification for a call center job?

Most call center positions do not necessitate any formal educational skills. A bachelor's degree or even a high school diploma may be required to work as a call center agent. Any experience in communications, sales, or marketing is advantageous.

Is Wipro a BPO?

Wipro BPO, Wipro Technologies' Business Process Outsourcing service line, is one of the largest BPO service providers on a worldwide delivery platform. Wipro BPO has more than 28 centers in 11 countries and can provide onshore, nearshore, offshore, and hybrid delivery options.

Why do people hate BPO jobs?

BPO occupations are related to digestive troubles, sleep disorders, vision problems, and depression. Most BPO workers are in their twenties or mid-thirties. Therefore, it is reasonable that they now and again smoke since they work around evening time.

See the disadvantages of BPO above

How many hours do people work in a call center?

Most call centers require their workers to work for 9 hours every day, and this is stated in their offer letter. However, many organizations expect them to labor for longer periods as part of the process.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2022 Umesh Kurmi

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