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What are the 4 types of business process outsourcing?

Every successful business can adapt, problem-solve, and find more efficient ways to run its daily operations. The ability to identify problems and come up with creative solutions is critical to business success. However, simply reacting to problems as they arise is insufficient. It is also critical that businesses work to improve business processes before problems arise. You want your company to continue to grow and improve, not simply maintain the status quo.

xetron solution what are the 4 types of business process outsourcing

One of the most popular and effective methods of streamlining a business is to use a manpower outsourcing model for specific functions. If that sounds like something you'd like to see in your company, continue reading to find out more about your options.

What is business process outsourcing?

Business process outsourcing is the practice of hiring another company to perform a process that your own company requires. In other words, you're hiring a third party to handle your company's non-core business operations.

Why outsource business processes?

When a company decides that another, more specialised outsourcing company can handle a business task better than they can, they choose to outsource. In many cases, businesses find that outsourcing is more efficient than staffing and paying a department within their own company to handle business processing.

xetron solution - why adopt BPO (Business Process Outsourcing)

How to outsource business processes?

There are numerous tasks that you can choose to outsource. Accounts payable, customer/call centre relations, document management, human resources (HR), payroll, and social media marketing are examples of these.

When companies talk about business process outsourcing, they frequently divide the work they're outsourcing into four categories. Your company may benefit from one or both types of outsourcing, and the type of outsourcing that is most beneficial to your company is determined by its specific needs.

Businesses are capitalising on the expertise and financial benefits provided by outsourcing both front-office and back-office processes as an alternative to hiring contingent workers in-house. Businesses can identify which services to outsource and how to cut costs by filling specific roles and acquiring unique skills by understanding the various types of Business Process Outsourcing.

What are the types of business process outsourcing?

Front-office business process outsourcing

Front office business process outsourcing refers to the outsourcing of customer service tasks such as marketing, technical support and sales. Because of the technical knowledge requirements, these services are frequently outsourced and can be completed off-site. Businesses can benefit from specialised talent with unique knowledge and cut costs by outsourcing web development, customer support lines, or any front office services.

Back-office business process outsourcing

Back-office outsourcing is a type of business process outsourcing that focuses on a company's internal requirements. 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 that fall into this category. IT-Enabled Services (ITES) business process outsourcing, 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 specific programme, are all subtypes of business process outsourcing.

Offshore business process outsourcing

Offshore outsourcing occurs when your company hires an overseas company to complete specific work requirements. A company in the United States, for example, might outsource to a company in Malaysia. This is encouraged by available resources, political stability, lower labour costs, various tax breaks, and other factors. Companies that outsource their customer service departments by contracting with call centre vendors all over the world are a common example. As a result, businesses can obtain qualified labour and services at a lower cost, lowering overhead costs and potentially lowering product or service prices for end users.

Nearshore business process outsourcing

When you contract work to a neighbouring country, this is known as nearshore outsourcing. As an example, suppose your company is in Malaysia and you outsource to Indonesia. The Malaysian company might outsource IT and coding services to specialists in Indonesia, or an Indonesian company might outsource marketing services to a marketing firm in Singapore. This type of outsourcing occurs when specialised skills are available at a lower cost in a nearby country, but certain factors, such as timezones or language proficiency, must be considered.

What are the advantages of business process outsourcing?

xetron solution - advantages of adopt BPO (Business Process Outsourcing)

Outsourcing eliminates the need to pay in-house employees to handle business processing tasks. Your employees will spend less time on paperwork and more time on value-added business tasks with automation.

In addition, Outsourcing companies that specialise in financial processes can frequently provide better security against cyber theft. This is true for both business process outsourcing. This advantage is likely to be especially noticeable if your company is small and lacks the resources for in-house cybersecurity.

Because outsourcing firms and BPA software providers specialise in streamlining core business processes, they can handle them much more efficiently than most in-house solutions.

Furthermore, your vendors will benefit from faster turnaround times if you use outsourcing and/or automation to speed up business processes.

Multiple employees are cross-trained for the same tasks by outsourcing firms. That means you'll never be behind schedule if someone calls in sick.



Outsourcing common business practices to a bpo company aids modern businesses in their pursuit of success. After looking at these examples, categories, and types of outsourcing, we hope you have a better understanding of the options available with business process outsourcing. Perhaps this article has inspired you to consider business processes that can be outsourced and how outsourcing could benefit your company in particular.

Are you currently utilising business process outsourcing to optimise your business? If you aren't, it may be time to reconsider your options. Xetron is a manpower outsource company that provides business process outsourcing services, namely front-office business process outsourcing (help desk and customer services) and the back-office business process outsourcing (IT Solution).

Front office refers to customer-facing activities that involve direct interaction between client and customer and are geared toward business expansion and strategy. It focuses on improving service delivery and may necessitate face-to-face interactions for certain functions. It is a job function at the highest level. Back office, on the other hand, is administrative in nature, with no direct interaction with customers. It focuses on revenue generation and cost reduction, with back-end functions. The aim is for high-quality delivery, administration, and upkeep. It is a lower-level job function than Front Office.

By outsourcing those two services, you can reduce in-house expenses and have greater efficiency and productivity for your business. Looking for Manpower supply in Malaysia? Click here to ask for a quote today



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