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What is HR Business Process Outsourcing (BPO)?

When your business needs help with an entire operation function – such as accounting, call centers, or supply chain management – you can contract with business process outsourcing companies. BPOs provide services for specific business functions, taking on all of the roles related to that function. This helps to create efficiencies in essential business processes while giving you time to focus on your own core goals.

In this article, we’ll define business process outsourcing (BPO), how it works, how it functions as a type of HR outsourcing, and the goals and benefits of outsourcing your business functions.

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What is BPO and how does it work?

Bbusiness process outsourcing (BPO) involves the outsourcing of specific business functions, including human resources, customer service, marketing, payroll, accounting, information technology, procurement, and supply chain management.

There are three types of BPO, according to Forbes:

  • Offshore business process outsourcing, meaning an overseas company takes care of the business functions.
  • Nearshore BPO, which is when a company hires a BPO in a nearby country.
  • Domestic or onshore business process outsourcing, which means hiring a company from the same country to take care of the business tasks.

Are BPO and HRO the same?

As mentioned above, BPO is the outsourcing of a specific business function, such as marketing or accounting. HRO (human resources outsourcing) is the outsourcing of some or all HR functions. So, while business process outsourcing covers many business functions, both BPO and HRO provide business owners a way to offload the administrative burden of HR tasks and gain access to HR expertise and insights.

Some examples of BPO services include (but are not limited to):

  • Information technology
  • Supply chain management
  • Legal
  • Accounting and finance
  • Research
  • Data entry
  • Customer support
  • Marketing
  • Human resources

A BPO company might provide services and support for only one function, or they may provide services and support for multiple business functions. You can think of BPO as an umbrella term for all the different kinds of outsourcing and consulting available to businesses.

G&A Partners, for example, provides comprehensive human resources outsourcing, including HR policies and procedures, training and development, HR regulations and compliance, benefits administration, payroll processing and reporting, and HR technology solutions. Another company might provide only IT functions. Yet another company may offer multiple services.

Whether you are choosing a BPO or HRO, you can choose the specific services that fit your company’s needs. Contact G&A's HR experts to find the type of HR outsourcing for your business.

What is the goal of Business Process Outsourcing?

If you’re focused on growing your core business, you may be struggling to keep up with some essential, non-core operational functions. Contracting with a business process outsourcing company gives you access to innovative technologies and expertise that may allow you to save money, improve overall operations, manage risks, and more.

Companies across industries – manufacturing, healthcare, energy, and finance, for example – rely on BPO to fill in where expertise is needed. The goals are often to save time and money while gaining expertise and flexibility.

What are the benefits of Business Process Outsourcing?

The benefits of BPO are as varied as the reasons companies seek assistance, but some of the most common benefits allow you to:

  • Focus on core business functions
  • Gain access to experts in the areas you are outsourcing rather than having to hire that talent
  • Reduce costs
  • Access state-of-the-art technology
  • Reduce risks
  • Gain competitive advantage

How Can G&A Help?

If you’re ready to learn more about HR outsourcing, schedule a consultation with G&A Partners. We can walk your though (and help you understand) the full range of HR services, our top tier benefits packages, and how working with a respected HR firm with best-in-class client service can provide you much-needed time and peace of mind.