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What is Business Process Outsourcing (BPO)?

23 October 2020

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The business world is getting faster and the level of competition is getting higher and companies have to be smart in managing their business. How can a large company run all the operations it has to do? Efficient operations are needed to be competitive in this fast-paced business world. This makes companies need business process outsourcing services to third parties to be able to assist companies in running their business.

Definition of Business Process Outsourcing (BPO)

Business Process Outsourcing or commonly abbreviated as BPO is an activity of outsourcing several business processes and functions carried out by a company to a third party. Companies can use BPO services to perform some of the tasks necessary for their business to operate efficiently.

Basically, BPO is an action taken by companies when they hand over some of their activities to outside parties. This transfer, along with the rights and obligations of each party, is usually recorded in a cooperation contract, either to solve problems in the company or to support the goals and objectives of business activities. In this sense, both the outside provider and the company have an equal position - not as a superior and subordinate because it is a partnership or cooperation.

The purpose of BPO

In Indonesia, many BPO companies are companies that outsource the business processes and functions of a company. The objectives of Business Process Outsourcing are as follows:

  • As a complement to technical services
  • Companies can focus on core business operations
  • Cost efficiency and repair work of a non-core nature
  • Reducing the risk to the company for future business uncertainties

Advantages of BPO

The advantages of using BPO for companies are as follows:

  1. Increase productivity. An important aspect of business process outsourcing is its ability to free companies from some of their day-to-day process management responsibilities so that executives have more time to focus on core business operations. Outsourcing companies are able to increase their efficiency and productivity for the operations of other important divisions.
  2. Cost-Effective. Another benefit that companies can experience by using BPO is cost savings. Companies use BPO so that it can be helped regarding work efficiency as well as labor so that companies can save costs in terms of infrastructure, manpower, and business operations.
  3. Focus on Core Business. BPO can provide assistance to companies to focus on the company's core business. BPO can give executives the freedom to focus more on time and energy building the company's internal business because BPO will be responsible for managing the daily operations of the company's back office and front office.
  4. Increase Capability. By using BPO, companies can increase their ability to provide more optimal products and services for their customers. So that customers will get products and services according to their needs. This can increase the capabilities of employees to be able to develop their abilities.

BPO has evolved over time and innovation in technology. BPO provides a variety of services according to company needs such as payroll, human resources, accounting, customer experience, or contact centers. In this case, it is usually categorized into back office outsourcing which includes internal business functions such as human and financial resources, and front office outsourcing includes services that deal with customers directly such as contact centers. In addition, there are other services such as business, health, energy, technology, retail, transportation, and telecommunications.

One of the well-known BPO companies in Indonesia is VADS Indonesia which can provide professional BPO services, especially in the fields of Customer Experience, Digital Solutions, and Security Solutions in Indonesia and the Asia Pacific to increase business productivity and profits for your company. Various solutions are provided such as:

  • Contact Center Service Solutions
  • Customer Service Learning Center
  • Omni-channel Strategy
  • Digital Care Management
  • Social Media Analytics
  • IT Managed Services
  • Smart Services
  • Cyber ​​Security
  • Blockchain Secure Authentication
  • Smart Voice Bot
  • WhatsApp Business
  • Smart Chat Assistant

With various advantages that VADS Indonesia has such as certified experts, 24/7 service for 365 days, has ISO 27: 0001 for data security so we can help you.

To find out more about how to improve customer service in your company, VADS Indonesia can help your business. Kindly contact marketing@vads.co.id for consultations regarding customer service and to see more about how VADS Indonesia helps various companies in Indonesia in developing their business.



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