10 things you need to know about Business Process Outsourcing (BPO)

1. What is Business Process Outsourcing (BPO)


Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. BPO includes recruitment and customer-related services such as tech support, sales, accounts, human resources, administrative and marketing.

Business Process Outsourcing BPO

Business Process Outsourcing BPO

As businesses seek to lower costs, compete, expand their global reach and focus on their core concerns, they have turned to outsourcing their noncore business processes. Information technology (IT) was first outsourced decades ago when big data systems were too costly for smaller companies to own, but made sense to share. Now, low-cost global communication networks allow vendors to send information almost anywhere in an instant. Technicians running software thousands of miles away can produce data for you to view on your desktop at will.

Business Process Outsourcing

Business Process Outsourcing

Business Process Outsourcing is the migration of business process from the inside of the business to the outside of the business.

2. Why Business Process Outsourced BPO?

Business Process outsourcing (BPO) enables the company business owners to grow and increase profits and save money on operational expenses. Thus, making their business more successful.

Businesses can depend on BPO to decrease investment costs, increase competitiveness, and enhance the cyber security of company data. The main goal for a company is to maximize profit while deploying available resources efficiently.

Many businesses are able to do this with the help of BPO service providers.

Business process outsourcing benefits

3. 3 Types of BPO

Type of BPO


  1. Offshore Outsourcing – Faraway countries like Australia, New Zealand, Japan, Korea, China, American or European countries
  2. Nearshore Outsourcing – contracted to neighbouring countries like Malaysia, Indonesia
  3. Onshore Outsourcing (domestic sourcing) – contracted to company in the same country

3. Advantages and Disadvantage of BPO

Advantages of BPO

  1. Flexibile to your dynamic ever-changing business needs. Scaling up and down is easy.
  2. Peace of Mind
  3. Free up your time
  4. Ability to Focus on Business Core Competency
  5. Manpower Cost Reduction from weaker labour laws, reduced corporate income tax and personal income tax

Disadvantages of BPO

  1. Data Security Risks and Privacy Breaches
  2. Poor Coordination from Weaker Communication

4. Handling BPO Risks

Certain risk factors accompany all BPO projects. If you have problems in these areas, have a plan
to stop the losses before they become threatening. These risks are:

• Risks to your human capital, including knowledge and talent.
• Risks associated with designing, executing and operating the project.
• Risks that your intellectual property may leak to your competitors.
• Risk that your vendor might use what it learns to become your competitor.
• Legal risks and litigation due to badly written contracts, unmet SLAs, HR issues or more.
• Risks that your vendor may not meet its commitments, may be purchased, may violate HR laws or may even go out of business.
• Risks that key project components may change and destroy your value proposition.
• Unforeseeable, uncontainable risks due to natural disasters, political change or epidemics.

5. Building your Relationship with your BPO Vendor

Both your firm and your vendor must benefit for your BPO project to succeed. Build the relationship on trust and respect. It also requires six additional elements:

1. You must understand and support your vendor’s need to make a profit. Either party need to look after each other long terms interests
2. Both sides must realize that they’ll need to adjust the Service Level Agreement as they gain experience or as changing factors require new performance levels.
3. Your firm must know, acknowledge and live up to its commitment to the project.
4. The project team must prepare for any staff changes to keep the program on track.
5. Participants should use standard resolution methods to identify and fix problems.
6. The project team must understand the interpersonal norms in both companies, particularly if they are in different countries.


6. Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing is the full or partial outsourcing of a company’s internal recruitment function to a specialist firm who assumes the role of the client’s recruiting department by owning and managing the recruiting process and related recruiting relationships. RPO firms provide the necessary skills, activities, tools, technologies and process methodologies to clients in an on-site, off-site, or virtual delivery model. RPO is commonly used to recruit direct-hire employees.

Recruitment Process Outsourcing (RPO) is a form of Business Process Outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider

7. Offshore Solution

We provide all services of staffing support to Information Technology/Consulting/Solutions offshore projects. We are working closely with companies to deliver staffing solution and manage their offshore recruitment needs.

Our IT consulting arm translates business strategy into viable technology solutions. We can deploy, manage, and support your IT infrastructure, whether on your premises or on the Cloud.

Location for Offshore

Currently, we have office in Johor Bahru, 2 min drive from causeway. We are able to help you with outreach, recruitment, interview, onboarding, mentoring, training, development, retention, coaching and offboarding of employee. Our Batam office will be starting this year. All the offshore remote workers will be housed and taking care of their mental wellness in our co-working office. In short, we aim to be your preferred partner in the Business Process Outsourcing.

8. IT Solution for BPO

We have tools to help your business to overcame the 2 main challenges of BPO, namely Data Security and Operational Communication.

9. Trends for BPO

Emerging trends that affects BPO

  • Robotics Process Automation (RPA)
    • Automation Anywhere, UIPath, BluePrism, TagUI
  • More Startup Companies Deploying BPO Services
  • BPO Services are Increasing in Existing Outsourcing Countries
    • China, India, Malaysia and Indonesia
  • New Emerging Outsourcing Countries
    • Estonia, Poland, Bulgaria, Egypt, Romania, Mexico and Columbia

10. Common BPO Services

Some of the common BPO Services offered in Singapore

  • IT Support HelpDesk
  • Digital Marketing
    • Search Engine Optimization (SEO) – To Improve Keyword Ranking Position in Google Search Engine
    • Search Engine Marketing (SEM) – To Manage Digital Ads for Google, Facebook
    • Blogging – Build Keyword Related Content for Website and Social Media
    • Graphics Design – Create Information Graphics for Website and Social Media
    • Video Production – Produce Video for Website, Youtube and Social Media
  • Data Entry
  • Customer Support
  • Human Resources
    • Entrance and Exit Interview
    • Manage Onboarding and Departing Employee
  • Finance Reporting
  • Accounting
  • Payroll
  • Software Development