What is Outsourcing? Here are the Basics About BPO

Definition of Outsourcing:

Outsourcing is the practice of hiring a third-party firm - independent of your company - to take responsibility for performing services and creating goods that are traditionally handled by your direct employees.

Business Process Outsourcing (BPO) is becoming increasingly popular, yet some organizations hesitate to outsource. 

For some it is uncertainty about the accuracy of their strategic planning analysis of current operations; for others, it may simply be a fear of the unknown.

If you are unsure about outsourcing your administrative processes, now is the time to explore this valuable tool to streamline your organization. 

The outsourcing experts at LOGIN SERVICES™ have put together this guide to get you up to speed on the basics so you can begin reaping the benefits of outsourcing.

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The switch to outsourcing should not be painful… hire a top BPO provider

Outsourcing Basics

Rather than using your experienced, internal workforce, let a BPO company handle routine administrative processes. 

This provides a more stable team so you can focus your in-house workers on strategic growth initiatives.

What is a BPO?

The term BPO refers generally to the process of outsourcing, but it may also refer to a vendor that provides business process outsourcing services.

Hiring Freelancers is Not Outsourcing

  • If you have contractors or freelancers on your team, are you already outsourcing? No. 

With freelancers you must still manage their work, so these are simply employees with different designations from workers you hire directly.

Here are a few arguments against using individual freelance or contracted workers:

  • The threat to your security and confidential, proprietary information goes up
  • Freelancers may have split loyalties and competing priorities
  • Remote workers are harder to manage than in-house staff

Typical Processes Taken Over by BPOs

Most general office functions can be successfully outsourced. Full-service, comprehensive BPOs like LOGIN SERVICES™ offer a single source for common administrative processes. 

Here are some of the most popular outsourcing service solutions:

Data Entry
Lead Generation
Virtual Assistance
Medical Office
Paralegal Support
Document Control

All BPO Companies Are NOT the Same

Some BPOs specialize in a particular industry, and others only offer general administrative services. You should consider hiring a firm that offers both.

For example, you may only want to outsource medical billing, but a full-service firm that provides medical back-office services – as well as typical business processes – may be the smart choice. If you later decide that you need virtual assistants for your executives or sales lead generation, you will already have a BPO partner you trust.

It is also a good idea to select a firm that provides business data analytics consulting in case you need complex data extraction and reporting in the future. These consultations may be short-term, standalone projects, or ongoing service – depending on your needs.

India requires BPOs to be licensed, and top-quality BPO firms meet and exceed the government’s high legal and ethical licensing standards. The bottom line – choose an outsourcing firm that offers quality, security, trust, experience, and reliability.

Your Outsourcing Project Director's Obligations

You will have a dedicated outsourcing expert to handle your project and keep it humming smoothly. Here are some of the things you can expect from your project director:

  • Frequent check-ins with you 
  • Rapid response to questions and changes
  • Personnel management/staffing
  • Maintain the workplace for efficiency
  • Monitor and improve productivity as needed
  • Data validation and accuracy verification
  • Data analysis and timely reporting
  • Fast implementation when services are added

The Switch to Outsourcing Should Not Be Painful

Begin making your transition plan now – start small with just one or two departments. You should avoid turning your entire operation upside down and disrupting your ability to continue providing the quality goods and services your customers expect.

When you consider the processes you want to outsource, focus on cutting processes – not costs. Streamline your operation and the financial reward will follow.

A high-quality outsourcing company will walk you through each step of the process and tailor the implementation plan so your customers do not notice the change. Make sure the firm you select is fully flexible with implementation and with the length and details of your contract.

Hire the Best Business Process Outsourcing Provider

Download the Outsourcing Guide & Checklist

In the white paper guide, How to Evaluate Full-Service BPOs to Replace Costly In-House Processes, you can learn about the criteria you should use to identify a reliable and experienced BPO that is a good fit for your organization. 

To keep your search organized, use our Vendor Screening Checklist for BPOs.

Is Outsourcing Right for Your Organization?

To make an informed decision, you need an analysis of your current business operations to compare with the efficiency and cost-saving you can achieve through outsourcing. This analysis must be accurate, reliable, and complete if you are to maximize the benefits of hiring a BPO.

If you have the necessary reports to make an educated decision, we applaud you! But if you are like most organizational leaders, you may not be sure you can accept your routine business reports as a complete and accurate reflection of your operation.

As a BPO industry leader, LOGIN SERVICES™ offers a short-term contract for business analytics consulting services to help you collect good decision-support data and decide if outsourcing is right for you. We have been in the business a long time, and we are ready to share our expertise to help you realize your organizational goals.

Can we help you get started?

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Step-by-Step Guides & Tools

Free Downloadable Handbooks & Templates

White Paper Download

How to Evaluate Full-Service BPOs to Replace Costly In-House Processes

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White Paper

by Murthy Rao M.

The full guide to planning, choosing a vendor, and getting started outsourcing

BPO Vendor Screening Tool

BPO Vendor Screening Tool Template

Vendor Screening Checklist


from the LOGIN SERVICES™ Team

Use this interview checklist template to help ask the right questions and choose the right BPO provider

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