Buyer guides › What is a BPO company?

Buyer guide · Before you buy

What is a BPO company?

A BPO company (business process outsourcing) runs a business function for you, such as customer support, bookkeeping or recruiting, using its own people, tools and methods. You pay for that work by the seat, the hour or the transaction, and you stop managing it task by task.

What BPO companies do

BPO companies usually split their work into front office (anything your customers see) and back office (everything they don't). Here's what each area covers, and where to compare companies that do it.

Business functions BPO companies run, with links to the matching directory drawers
FunctionTypical workCompare in the directory
Customer supportEmail, chat and phone support, order questions, complaintsCustomer service
Finance and accountingBookkeeping, payables and receivables, reconciliationsAccounting & bookkeeping
Recruiting and HRSourcing, screening, scheduling, HR administrationRecruitment (RPO)
IT supportHelp desk, devices, networks, security (often sold separately as IT outsourcing)IT outsourcing
E-commerce operationsListings, order handling, returns, marketplace adminE-commerce
Healthcare adminScheduling, billing support, front-desk workHealthcare practices
Real estate operationsListing admin, transaction coordination, tenant supportReal estate

The three types you'll meet

"BPO" covers companies of very different sizes, and the size decides whether they'll want your business. These are broad patterns, so confirm the details with each provider.

Large centers

Global BPO majors

Big contact centers in many countries, built for high volumes. Strong on process and scale. A buyer with a few seats may not reach their minimum. See the Philippine BPOs drawer.

One function or industry

Specialist providers

Mid-size firms focused on, say, support for online stores or accounting for firms. They often accept smaller accounts and know your tools already.

People you direct

Managed staffing

Strictly speaking not BPO: the provider recruits and handles the admin, while you direct the daily work. It's an option if you want to keep control of the process and start with one person.

BPO, staffing or freelancer?

A BPO company compared with a staffing provider and a freelance hire
BPO companyStaffing providerFreelance hire
Who runs the processThe providerYouYou
Who screens peopleThe providerThe providerYou
Who covers absencesThe providerUsually you, with a replacement if someone leavesYou
You're buyingA working functionA person's timeA person's time or output
Fits whenVolumes are steady and you want it off your deskYou want control and a stable personIt's a short or occasional task

How to shortlist a BPO company in five steps

  1. Write one page on the process. What comes in, what goes out, volumes per month, hours of cover, tools and who handles exceptions. Providers can't quote accurately without it, and you can't compare their quotes either.
  2. Pick the shape before the company. Decide whether you want a managed process, or a person you direct yourself. If you're unsure, the who-holds-what table will settle it.
  3. Choose where the work may happen. Decide on onshore, nearshore or offshore from the hours you need to share, using the overlap chart.
  4. List three to five companies, then disqualify. Check seat minimums and contract length first, because those rule out the most names at the lowest effort. Our drawers show them where they're published.
  5. Test before you commit. Ask for a small, paid trial on real work, with the service levels you'd measure later. Then take the survivor through the contract checklist.

Questions to ask on the first call

A good provider answers these without a follow-up call. Vague answers on the minimum or the exit tell you a lot, and they're cheaper to find out now than after you sign.

When a BPO isn't the answer

If you're still weighing the location question, read offshoring vs outsourcing.

FAQ

What does BPO stand for?

BPO stands for business process outsourcing: handing a whole business process, such as customer support or invoice processing, to an outside company that runs it with its own people, tools and methods.

What's the difference between a BPO company and an outsourcing company?

Outsourcing is the broad term for paying another company to do work. BPO is the part of it that covers business processes like support, finance and HR. IT work and software development are often counted separately, though many companies offer both.

What does a BPO company do for a small business?

Typically it takes over one repeatable function, such as answering customer emails, handling bookkeeping tasks or screening job applicants. A small business should check for a seat minimum first, because many large BPOs are set up for much bigger accounts.

How are BPO companies paid?

The common models are per seat or per person per month, per hour, per transaction such as a ticket or an invoice, and occasionally by outcome. Ask for a sample invoice, because the same work can look very different under each model.

Is a BPO company the same as a call center?

No. A call center is one kind of BPO, focused on voice support or sales. Many BPOs also run chat and email support, finance, HR and other back-office work, and some do no phone work at all.

Open a drawer

Each of these drawers lists companies with published prices, smallest start and contract terms, scored with one rubric, so you can start the shortlist from facts.

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