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BPO Full Form

Last updated date: 22nd Mar 2024
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Full Form of BPO

BPO is a business term and often used when dealing with other companies. BPO full form in English is Business process outsourcing. With an understanding of the BPO full form, it is clear that it refers to the outsourcing of business processes. It is a contract between a corporation and a third-party service or business process supplier. It's a cost-cutting strategy that allows businesses to outsource non-core tasks.

Business process outsourcing (BPO) is a type of outsourcing in which a corporation hires a third-party service provider to handle one or more business tasks. It began in the manufacturing industry and is currently utilised in a variety of business operations. Subcontracting or externalisation are other terms for BPO.  

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BPO Full Form in Different Context

Now that we have understood What is the full form of BPO let us further enhance our understanding of the computer and call centres perspective of BPO.

The BPO full form in call center goes by the same BPO full form which is the business process outsourcing. In the Call centre, it refers to a group of outsourced agents who handle incoming and outgoing customer calls for other companies. There are two types of BPO call centre services and are Inbound BPO call centre services and outbound call centre services. The inbound call centre service includes answering support questions by customers, order processing and dispatch. And the outbound BPO call centre service includes telesales, telemarketing and market research. 

BPO full form in computer refers to the cost-cutting strategy that allows businesses to outsource non-core tasks like accounting, data entry, and human resources along with customer service and technical assistance are also included. 

Objectives of BPO

BPO long form that stands for Business Process Outsourcing is a diverse range of functions and has many objectives of which some are as mentioned below:

  1. To save money:- Outsourcing reduces the cost of in-house labour, notably staffing and training, as well as the cost of office space to accommodate local personnel. A corporation based in a developing country can take advantage of lower-cost labour markets. Finally, outsourcing allows companies to use variable-cost models, such as fee-for-service programmes, rather than the fixed-cost models that are required when hiring local staff.

  2. To focus on important functions:- Outsourcing allows companies to focus on their core services rather than company functions that aren't directly related to their core processes. When a corporation outsources, for example, it won't have to keep track of the payroll accountant's performance. Rather, it can concentrate its efforts on emphasising its competitive advantages and increasing overall growth. As a result, these measures can improve a company's competitive advantage and value chain interactions. 

  3. To improve performance in non-core functions:- Outsourcing companies specialise in what is considered non-core functions of other firms, providing clients with world-class skills. Indeed, an outsourcing firm that invests in specialised procedures and technologies can provide clients with cutting-edge innovations. 

  4. To increase their global presence:- Some outsourcing organisations can serve consumers in several languages, 24 hours a day, seven days a week, removing the burden from the local company. Outsourcing businesses can take advantage of their presence in many countries while reducing the number of unnecessary divisions inside a local company.

  5. To provide flexibility:- Companies that outsource non-critical tasks can respond more swiftly and efficiently to risks associated with launching new goods or services. They can also reallocate internal resources to more vital functions to improve coverage and responsibility allocation.

  6. To enhance speed and efficiency:- Companies that outsource procedures choose to delegate those jobs to professionals, saving time, boosting accuracy, and expanding their capacity. A BPO that specialises in records management, for example, may automatically index documents, making them searchable and ensuring that a company remains compliant with regulatory standards. This eliminates the need for manual data entry and storage. 

Classification and Types of BPO 

Now with an understanding of the BPO full name and the BPO full form in English, the classification can be based on the services provided by the company, the vendor location and the types and various modifications within the BPO sector. 

BPO full form and meaning can be broadly classified based on their geographical services or the vendor location into three types-:

  1. Domestic outsourcing is another term for onshore outsourcing. It's when you get BPO services from someone in your own country.

  2. Obtaining BPO services from someone in a neighbouring country is referred to as nearshore outsourcing.

  3. Offshore outsourcing: Obtaining BPO services from an external organisation in a country other than the bordering countries is referred to as offshore outsourcing.

Classification of BPO based on types of services:

The BPO full form in English clearly describes it as Business Process Outsourcing and this can be of two types: front office service and back-office services. 

  • Front-desk services include- These are processes that necessitate direct interaction with clients and consumers by your BPO workforce. Marketing and customer service are two of these services.

  • Services in the back office- These are the company's internal business functions. Administrative tasks like order processing, payment processing, and quality assurance are examples of this.

Types of Services Provided by BPO:-

  1. ITES (Information Technology Enabled Services) is a sort of business process outsourcing (BPO) that deals with IT solutions via the internet. ITES is usually in charge of the following IT services include production support Analyst, Technical Support and Service Desk analyst.

  2. KPO Production Support Analyst- in this type of BPO service, the service providers are contracted to provide advanced expertise around a specific business process in Knowledge Process Outsourcing. Some KPO suppliers support functions that are deemed important in the business world, even if they are not the core functions of the company that hires them. KPO organisations may also provide business and domain-based expertise in addition to process experience. The highly skilled services consist of Accounting and financial analysis, Web Design. The Legal processes and Content Creation.

  3. Legal process outsourcing (LPO) is a subset of knowledge process outsourcing (KPO) that covers a wide range of higher-level legal work, not just lower-level legal transcription. Patent applications and legal agreements can be drafted, as well as legal research, by LPO firms. Some LPO firms even provide advice to their clients. LPOs are frequently retained by in-house legal departments. The work is done by experienced paralegals who use industry-standard databases. The work includes Drafting patent applications, Creating legal agreements and performing legal research. 

  4. RPO (research process outsourcing) is a subset of KPO that focuses on research and analysis. RPO firms conduct research and analysis for businesses, investment firms, biotech corporations, and marketing corporations. Data analytics, investment research, and primary and secondary market research are among the tasks.

  5. Travel- This refers to all of the activities that a company requires to support its travel logistics, such as reservations, hotel reservations, and vehicle reservations. The organisation saves money by using travel BPO since it reduces costs while enhancing customer satisfaction. BPO is also used by airlines and travel organisations to streamline front- and back-office processes. An airline, for example, could outsource its ticketing.

Specializations of Business Process Outsourcing 

There are many BPO services available in our country and around the world and many even choose each BPO firm that will only focus on a certain service. Such services involve:-

  • Call centres or customer interaction services- Voicemail services, appointment schedules, email services, marketing programme, telemarketing, surveys, payment processing, order processing, quality assurance, customer support, warranty administration, and other client feedback would all be covered by the BPO company.

  • Back-office operations and transactions- Check, credit, and debit card processing; collection; receivables; direct and indirect procurement; transportation administration; logistics and dispatch; and warehouse management are all part of this service.

  • Software and IT operations- Application development and testing, implementation services, and an IT helpdesk are examples of technical support functions. Manual data entry, for example, can be substituted with automated data capture, resulting in increased productivity.

  • Financial services that include- Billing services, accounts payable, receivables, general accounting, auditing, and regulatory compliance are all examples of finance and accounting services.

  • Human resource services: BPOs can assist in resolving workforce issues. Payroll services, healthcare administration, employment and recruitment, worker training, insurance processing, and retirement benefits are some of the services they can provide.

  • Knowledge BPO Services- Data analytics, data mining, data and knowledge management, internet and online research, as well as building an information governance programme and delivering the voice of customer input, are examples of higher-level processes.

Risks of BPO

  1. Security concerns- Working with a BPO provider can result in a security risk because sensitive data must be exchanged and processed.

  2. Overdependency- When a corporation outsources work to a BPO provider for a long time, they can develop acclimated to the way they function and become overly reliant on them. If this is required, the organisation will have to pay more than typical costs.

  3. Miscommunication- When working with an offshore BPO firm, the language barrier might impede back-office productivity. When a large number of individuals are involved in a project, such as development or IT services, miscommunication can lead to blunders. It can be quite pricey at times.

  4. Unpredictability- Costs that were not anticipated or that were not disclosed because work is not always hard and quick, the organisation may underestimate the amount of effort, resulting in higher-than-expected expenditures. Working with a BPO provider can result in legal fees if there is a disagreement or conflict. Indirect costs can be incurred if work is not delivered on time.


Transferring the services is a huge decision because it affects personnel, workflow procedures, and overall business operations, moving in-house work to a BPO company necessitates change management.  The decision to outsource a business process or a portion of it is made by company management. They analyse the benefits and drawbacks of the action and determine whether it is strategic for the company.

They find the finest BPO for the job and delegate the work from in-house to an outside service provider. The entire process is a time taking and tedious one weighing all the pros and cons and arriving at a conclusion that will be beneficial to the entire organization is quite a responsibility on the heads of departments. And thus not many can commit to their objectives and carry them out successfully. There are a number of good ones who have managed to expertise in this area like Accenture which is one of the leading Business Process Outsourcing service providers. Other such companies are Cognizant, IBM, Wipro etc. 

FAQs on BPO Full Form

Q.1) What role does IT play in BPO?

Answer) The expanding role of IT in BPO are multiple and that includes, Cloud computing, business analytics tools, social networking platforms, and process automation software are all being used in BPO to help companies cut costs and improve efficiency.

Q.2) What is the difference between business process management (BPM) and business process outsourcing (BPO)?

Answer) BPM stands for business process management, whereas BPO stands for an organization's "state of mind," or more specifically, its personnel. The number of knowledge employees has about business processes on a case-by-case basis can be used to evaluate BPO as a way of functioning.

Q.3)What is the difference between information technology and business process outsourcing (BPO)?

Answer) Information technology is abbreviated as IT. Within a firm, it can be used for both hardware and software duties. Business process outsourcing is abbreviated as BPO. It is a type of outsourcing in which a corporation hires a third party to handle non-core business functions.

Q.4) Which company is a BPO service provider?

Answer) Accenture is a global IT solutions and business process outsourcing firm that specialises in consulting, digital technologies, and business operations. The company, which is headquartered in Dublin, Ireland, has a global presence in more than 120 countries. The services provided by Accenture to their clients include services in accounting and finance, Procurement and sourcing, Digital marketing is a term that refers to the use of Management of the supply chain. And Insurance and healthcare along with Human resource management.