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BPO, Outsourcing and Offshore Staffing.

Outsourcing can be a powerful tool for businesses, but understanding the different models is crucial. Many companies struggle to differentiate between BPO (Business Process Outsourcing), offshore staffing, and outstaffing. This article provides a clear explanation of BPO, highlighting its key features and contrasting it with other outsourcing approaches to help you make informed decisions.

Azendo offers offshore staffing

Azendo provides an offshore staffing service where all employees work in an office exclusively for your company. As an extension, Azendo’s service also falls under outsourcing and business processing outsourcing but is a more specific niche.

Not all services offered by different companies are the same. Several terms in the outsourcing spaces can share similarities but can also differ. Outsourcing is more of an umbrella term, whereas offshore staffing and business process outsourcing are sub-sections of outsourcing.

Different companies have different needs. At Azendo, we believe that offshore staffing offers a superior form of outsourcing. By hiring dedicated staff, you never need to fight for their attention. Other companies may be happy with traditional outsourcing without strict quality controls and supervision.

There are multiple aspects to consider when engaging in outsourcing, offshore staffing, or business processing outsourcing. Understanding the difference between what is available is the first step to making the right decision.

Azendo does not offer BPO or Business process outsourcing

BPO involves contracting a third-party provider to manage and execute an entire business process.

This goes beyond simply providing personnel. With BPO, you’re outsourcing a specific function, like customer service, payroll processing, or even a complex process like software development. The BPO provider takes responsibility for the entire process, including staffing, technology, infrastructure, and performance. They are accountable for achieving specific service level agreements (SLAs) and delivering defined outcomes. Think of it as hiring a specialized team to run a department for you.

This makes BPO (Business process outsourcing) significantly different compared to especially offshore staffing but also many other outsourcing models.

In the model below, we have tried to create a more visualized overview, to better understand the differences.

Overview.

Geo location of 3rd party vendor

Access to handpick workforce

Direct contact to workforce

Workforce is dedicated to your business

Workforce is integrated into your company culture and processes

Control of workforce

Cost optimization

Outsourcing

Usually on the same geo location

No, it’s usually through an Account Manager

Can be expensive because you must pay for any additional services as part of the project

BPO

Same geo location or offshore

No, it’s usually through an Account Manager

Usually expensive since BPO vendor must account for risk in their pricing

Offshore staffing

Offshore

Access to handpick from a global talent pool

Direct and close contact with offshore team

Offshore team is dedicated full-time to work for your business

Offshore team is an extension of your business and is fully integrated into your company culture

You remain in control of your offshore team despite the geo differences

Reducing overall operational cost by up to 70% compared to onsite workforce

Outsourcing

Outsourcing is the business practice in which a company hires a third party to perform tasks, handle operations or provide services. Outsourcing involves using another company to be responsible for a planned or existing activity. That could include replacing existing employees or expanding the business using outsourced employees. Outsourcing companies can be both offshore and onshore. The outsourcing company may provide dedicated employees or, as is more typically the case, has outsourcing staff that works with multiple clients. An outsourcing contract could be a specific project or a long-term solution for essential business functions. Those functions could range from anything and everything from payroll processing, coding, digital marketing, customer service, call center support and more.

Outsourcing

Access to handpick workforce

Direct contact to workforce

Workforce is dedicated to your business

Workforce is integrated into your company culture and processes

Control of workforce

Cost optimization

BPO/Business Process Outsourcing

Business process outsourcing is the delegation of business processes. A company contracts with an external service provider to perform an essential business function or task.

There is an overlap with outsourcing. As with traditional outsourcing, BPO typically involves a company with many staff who work with multiple clients. A well-known example of BPO is payroll, but it can cover any business process that does not have to be undertaken in-house. Accounting, payment processing, IT services, human resources, regulatory compliance and quality assurance are examples of business processing that can benefit from BPO.

Business Process Outsourcing (BPO) has become a strategic tool for organizations across a wide range of industries. By delegating specific business processes to specialized third-party providers, companies can streamline operations, reduce costs, and focus on core competencies. But which industries and business functions benefit most from BPO? Let’s explore.  

Industries Ripe for BPO:

 

Information Technology (IT): IT BPO is prevalent, encompassing services like help desk support, software development, network management, cybersecurity, and data center operations. The rapidly evolving nature of technology often necessitates specialized expertise that BPO providers can offer.

Finance and Accounting (F&A): F&A BPO includes services like accounts payable/receivable, payroll processing, tax preparation, financial reporting, and even risk management. These functions are often standardized and highly regulated, making them suitable for outsourcing.

Healthcare: Healthcare BPO addresses administrative tasks like medical billing, claims processing, patient record management, and even telehealth support. The complex regulatory environment and the need for efficient operations drive BPO adoption in this sector.

Customer Service: Call centers, customer support, and technical assistance are frequently outsourced. BPO providers can offer 24/7 coverage, multilingual support, and specialized expertise in customer relationship management (CRM).

Manufacturing: Manufacturing BPO can involve outsourcing parts of the supply chain, production planning, logistics, and even product design. This allows manufacturers to focus on core competencies and optimize their operations.

Human Resources (HR): HR BPO includes payroll processing, benefits administration, recruitment, training, and talent management. Outsourcing these functions can free up HR staff to focus on strategic initiatives.

Retail: Retailers often outsource customer service, order fulfillment, inventory management, and even e-commerce platform management. BPO helps retailers scale quickly, manage seasonal fluctuations, and improve customer experience.
Logistics and Supply Chain: Logistics BPO involves outsourcing warehouse management, transportation, distribution, and supply chain optimization. This can lead to significant cost savings and improved efficiency.

 

 

Business Functions Commonly Outsourced:

 

Beyond specific industries, certain business functions are particularly well-suited for BPO:

Customer Support: As mentioned earlier, call centers and customer support are prime candidates for outsourcing.

Data Entry and Processing: Repetitive tasks like data entry, form processing, and document management are easily outsourced.

Back Office Operations: Administrative tasks, such as record keeping, data management, and reporting, are often outsourced to improve efficiency.
Sales and Marketing: Lead generation, telemarketing, market research, and even digital marketing campaigns can be outsourced.

Research and Development (R&D): While less common than other functions, some companies outsource specific R&D tasks to access specialized expertise.

Training and Development: Companies might outsource training programs, e-learning development, or even employee onboarding processes.
Why These Industries and Functions?

 

 

Several factors make these industries and functions ideal for BPO:

 

Cost Reduction: BPO often provides access to lower labor costs, especially when offshoring is involved.

Focus on Core Competencies: Outsourcing non-core functions allows companies to focus on their strengths and competitive advantages.

Access to Expertise: BPO providers often have specialized skills and experience that may be lacking in-house.

Improved Efficiency: BPO providers can often streamline processes and improve efficiency through automation and best practices.

Scalability: BPO allows companies to quickly scale up or down as needed, responding to changing market demands.

24/7 Availability: For functions like customer support, BPO providers can offer round-the-clock coverage.

 

Business Process Outsourcing

Access to handpick workforce

Direct contact to workforce

Workforce is dedicated to your business

Workforce is integrated into your company culture and processes

Control of workforce

Cost optimization

Offshore staffing

Offshore staffing is the service of providing staffing solutions overseas for various types of businesses. While a part of outsourcing, the key difference is that offshore staffing companies such as Azendo provide dedicated staff.

The benefit of offshore staffing is that it is an efficient and cost-effective alternative to running an office in a company’s home country. The offshore staffing company takes over back-end human resources, payroll and facilities requirements. At the same, clients retain control over daily operations. Using offshore staffing offers a better availability of skilled talent in a process similar to hiring staff in a company’s home country, but without the hassle.

Offshore staffing

Access to handpick workforce

Direct contact to workforce

Workforce is dedicated to your business

Workforce is integrated into your company culture and processes

Control of workforce

Cost optimization

Scaling your business has never been easier.

Arrange a call or meeting to discuss how Azendo can provide offshore staff that can support your business.

Azendo has over ten years of industry expertise. ​​We make it easy and affordable for businesses to build their full-time, dedicated teams in Thailand.

Our experienced staff screens your customer service, web developers and digital marketing specialists. We do the hard work required to identify potential candidates, including testing and assessing their skill levels when applying for a position. Our recruitment specialists source potential candidates based on our offshore staffing experience. We work with you to determine your hiring needs and prepare detailed job profiles. We present you with our recommended shortlist so you can pick the right staff for you.

Azendo takes the hassle of employing a team member by covering all the setup requirements when onboarding new staff. Azendo handles payroll – including paying staff, income tax and social security payments, so you don’t have to worry about the fine print.

New team members are trained in your company’s requirements and internal processes. Azendo makes sure that your new team members are brought up to scratch to understand the company systems they will be using. Your dedicated staff report to you daily.

Contact our sales team today in the form below and let’s talk about your needs.

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