2. Irene A. Abestilla
EDC 224-Human Resource Management
“Business process outsourcing is
a fast-growing sector of the
economy, which makes it
attractive as a career path or
startup opportunity. According to
industry research, the BPO
market was valued at nearly
$250 billion in 2021, and is
projected to grow at 9% per year
over the next decade.”
Source: Business Process Outsourcing Market Size, Share &
Trends Analysis.
5. Irene A. Abestilla
EDC 224-Human Resource Management
Business Process Outsourcing
(BPO), refers to when
companies outsource business
processes to a third-party
(external) company.
The primary goal is to cut
costs, free up time, and focus
on core aspects of the
business.
6. Irene A. Abestilla
EDC 224-Human Resource Management
This BPO service entails providing expertise and
leveraging industry knowledge. A BPO company with a
team of experts can help scale and grow your business.
This service involves outsourcing legal-related matters,
including business licensing, contract writing, and legal
research and advice. The BPO firm specialists have law-
related educational backgrounds, expertise, and
specializations.
This service is about research and development (R&D) and
applies to biotechnology, financial investment, and digital
marketing. Experts will handle your research and analysis
to ensure accuracy.
This service centers on IT support functions, covering
network management, software updates, hardware
installation, troubleshooting, help desk, and more. You
are guaranteed experts to address your IT needs.
Source: https://unity-connect.com/our-resources/blog/bpo-meaning/
7. Irene A. Abestilla
EDC 224-Human Resource Management
Primary Types of OUTSOURCING
This outsourcing involves
overseas BPO companies. For
instance, a U.S.-based
company hires a BPO service
provider in Asia. Cost
reduction is usually the top
reason for offshoring.
This outsourcing involves a BPO company in the
same country of operation as the hiring company.
For example, an e-commerce business in the U.S.
hires a digital marketing agency also in the U.S. to
promote its products. Onshoring is a practical
solution if you don’t have the workforce,
technology, and resources for continuous and
seamless operations.
This outsourcing is working
with a BPO company
operating in a nearby country.
For instance, a U.S.-based
company works with a call
center in Mexico for its
bilingual customer service. A
move to Latin American
countries is one of the latest
BPO trends.
ALL TYPES OF OUTSOURCING HAVE ONE THING IN COMMON
– THEY INVOLVE HIRING A THIRD PARTY OUTSIDE OF YOUR
COMPANY TO HANDLE BUSINESS ACTIVITIES FOR YOU.
Source: https://unity-connect.com/our-resources/blog/bpo-meaning/
8. Irene A. Abestilla
EDC 224-Human Resource Management
Business operations involve several functions that you can outsource. The usual
functions that most companies outsource to BPO companies include Front-office
and Back-office.
Back office BPO refers to a
company contracting its
core business support
operations such as
accounting, payment
processing, IT services,
human resources,
regulatory compliance,
and quality assurance to
outside professionals who
ensure the business runs
smoothly.
Front office BPO tasks
commonly include
customer-related
services such as tech
support, sales, and
marketing.
Source: (https://www.investopedia.com/terms/b/business-process-
outsourcing.asp#:~:text=BPO%20is%20the%20abbreviation%20for,core%20aspects%20of%20the%20business.)
10. Irene A. Abestilla
EDC 224-Human Resource Management
Source: https://www.liveabout.com/what-is-outsourcing-2533662
1.Focus on Core
Competencies
2.Financial Stability
3.Flexibility and Agility
4.Service Quality and
Efficiency
5.Increased Profitability
6.Business Scalability and
Growth
1.Partnership Barriers
2.Breach of Privacy and
Security
3.Overdependence on
External Vendors
4.No Complete Control
5.Compliance With Rules
and Regulations of your
BPO partner’s country
6.Business Disruption
11. Irene A. Abestilla
EDC 224-Human Resource Management
Business process
outsourcing is a viable
solution for reducing
operating costs. You can
focus on core functions and
gain a reliable workforce,
technology, and resources
through outsourcing. The
BPO industry plays a crucial
role in business today.
12. Irene A. Abestilla
EDC 224-Human Resource Management
By partnering with the right
BPO service provider, you’ll
boost your service efficiency,
quality, and productivity. You’ll
not only improve customer
satisfaction, you’ll also improve
your business’s operations over
time while reducing costs.
15. Benefits of outsourcing recruitment
and selection process:
The primary benefit of outsourcing recruitment is cost-
effectiveness. This is often quoted as the major motivation
for various companies to adopt this model.
16. Increased scalability:
While outsourcing the recruitment process, it is
possible to scale up and down the hiring activities per
the requisite. This practice would allow your company
to swiftly adapt to the altering recruitment needs.
17. Time-efficient hiring:
a cost-effective recruitment process requires
significantly more time. This is because most of the
companies follow a standard recruitment module which
is quite primitive. Such outdated strategies would
consume potential time and money with little to no focus
on the employment perks offered by the company.
18. Improve quality of hire
Hiring the right candidate could be a tedious task as it is
not easy to sum-up the competencies of an individual based
on their skillset or experience. Recruiters evaluate multiple
factors that are while making a decision call in terms of
hiring.
19. Analytics and reporting
outsourcing the recruitment process leads to data
gain. Besides real-time reporting, the idea of
documenting the candidate information also
contributes to the decision-making factor.
20. Outsourcing the recruitment process also
stimulates the growth of your company through
dynamic recruitment assistance.
21. Improves employer branding
In today’s scenario, candidates with commendable
skillset are sought after by varied firms from across
the world. Hence, it is imperative to market the
vision and values of your company in order to attract
good talent stream.
22. Global Compliance with hiring regulations
International hiring demands maintaining
compliance with the local recruitment laws and
regulations. These may vary depending on the
country hence, the HR department of every
company should refrain from contravening
them.
23. DISADVANTAGESOF RECRUITMENT PROCESS
OUTSOURCING
Under-utilized HR resources
The basic idea of redirecting an in-house functionality to an
external service provider leads to loss of time. It also
deteriorates the profit margin and efficiency as the internal
resources are not employed to their full bandwidth. As in, the
in-house HR resources may run out of errands to be
performed on a daily basis.
24. Staffing and Recruiting
The outsourcing process also comes with the risk of
not recruiting the right fit for your company.
Security concerns
While outsourcing your recruitment process there is
a threat around compromising on data
confidentiality.