Outsourcing vs BPO: What’s the Difference?

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Outsourcing and BPO are both terms used interchangeably but the difference simply lies in the specifics on what they cover or how broad they are. The truth is, the difference isn’t too complex between both.

What is Outsourcing?

Outsourcing comes in many shapes and forms but in essence, it’s that a company uses external resources or asks for the help of a third party provider for certain tasks such as call centers, admin, janitorial services, and more.

What is BPO?

BPO essentially stands for business process outsourcing. In other words, it’s still part of outsourcing where specific business processes and responsibilities are delegated to a third party. 

BPO may include back-office functions such as IT, human resources, quality assurance, and payment processing, all that may be relegated to a third party provider.

Front office functions, on the other hand, include customer support (via chat or phone), sales and marketing, and technical support.

What Processes are Commonly Outsourced?

Some of the most popular outsourced tasks by businesses worldwide:

  • Accounting
  • IT Management
  • Sales
  • Administration
  • Call Centers
  • Shipping and Logistics

Small, medium, and large businesses commonly outsource more technical tasks so that they can focus on their core operations while larger ones range more from back office operations to front office functions.

Should You Outsource?

BPOs allow businesses to meet business goals such as cost savings and provide for more flexibility. Business process outsourcing also speeds up operations to cater to the market, giving more financial benefits and pushing toward competitive advantage.

According to US News, an “overwhelming majority of businesses report difficulty hiring workers and retaining existing employees.” This hiring crisis has prompted businesses of all sizes to find solutions in outsourcing. The losses associated with employee turnover (hiring, training) on top of providing benefits affect a business’ overall profitability and ability to scale.

What Pac Biz Offers

Pac Biz provides customer support, ecommerce supporthealthcare servicestransportation dispatching, and IT help desk solutions to help businesses scale. Companies work with Pac Biz to increase their profit margin by up to 400%, allowing for better growth and customer retention.

Pac Biz agents are held to high standards, with quality assurance scoring and requirements of 3–5 years of experience in the industry. Agents act as an extension of your company, working in conjunction with your local team.

Work with Pac Biz to scale your business. Contact us today.

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