Business processes can be outsourced as front office or back office projects, with third-party companies offering a range of options. BPO projects can be classified by location, with some outsourced offshore and others managed by nearshore companies. Front office projects include customer service call centers, while back office projects involve non-public operations like accounting and human resources.
Business processes that can be outsourced are classified as front office or back office projects. Third-party companies that provide business process outsourcing (BPO) services offer a variety of project options in each category. Types of BPO projects can also be differentiated by the location of the service provider. There are types of projects that are usually outsourced to offshore companies and other types that are usually managed by companies located in the same country as the client, known as nearshore outsourcing.
Any business process that is not considered a core function can be structured to outsource to a third-party company. The theory behind outsourcing is that it allows the business to focus on core operations while allowing another company with specific expertise to focus exclusively on one operational task in many companies. Types of BPO projects are initially classified as part of the client company’s front office or back office operations. Front office operations are the business departments that interface with the public. Back office operations consist of everything else.
= The most common front office outsourced BPO project is the customer service call center. A client company hires a third-party company to provide telephone support over the phone, particularly during non-business hours for companies that need to provide 24-hour contact. Call center representatives are employees of the third-party company, but represent themselves as employees of the customer’s company to callers.
Other types of front office BPO projects include email and Internet chat customer support, technical support, web forum moderation, and marketing. These types of projects also tend to be outsourced overseas. For example, English-speaking companies such as the UK and US are more likely to use a BPO company in a developing country that has an English-speaking workforce to save money on the cost of labor. labor when the process requires a ubiquitous connection that can be maintained over long distances, such as with the telephone or the Internet.
BPO back office projects involve any commercial operation that does not directly touch the public. An example is the outsourcing of the entire accounting department. The company may outsource the entire department or just specific accounting functions like processing or payroll processing. Other commonly outsourced business operations in this category are human resources, data entry, and security services.
These types of BPO projects tend to require on-site personnel from the third-party service provider or services that require direct contact with the company’s workforce. As a result, these projects are also often classified as nearshore projects. They often need to be outsourced to companies located in the same country as the client’s business.
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