Claim Now
Free Outsourcing Guide
Get a free copy Now
The TMD Source
Est. Reading: 2 minutes

What is BPO and how can I start exploring it?

Business Process Outsourcing (BPO) is a term that refers to the outsourcing of business processes to a third party.
Published on
25 Jan 2023

Business Process Outsourcing (BPO) is a term that refers to the outsourcing of business processes to a third party. Through BPO, companies subcontract their business processes to service providers that may oversee their ongoing operations. Although outsourcing was previously perceived as a threat to local firms, it has now become a need for many businesses due to its benefits (i.e., reduced costs, increased flexibility, and improved performance).

Companies that have previously worked with BPO firms may advise you against basing your choice only on current costs. As the need for knowledge-based services or the capacity to use automation grows, you can find that the cost of an office space or an employee becomes less relevant, given that BPO firms improve their value proposition every three to five years. You should also consider the workforce diversity, geographical location, culture, and local government support when selecting a BPO service.

Workforce Diversity

You must take into account both your present and projected talent needs, as well as any potential changes for the various tasks that make up your outsourced services. This encompasses the evolving standards for skill sets, talent management, and labour flexibility. You can lower the risk of disruptions brought by lack of coverage in your operations by having a diversified team.

Geographical Location

The geographical location needs to be in an area where your firm can prosper and expand. Additionally, it should be located in an area with a low cost of living, a skilled labour force, and a high quality of life. It is critical that the BPO company you choose has a location that can keep up with the globalisation and quick technological improvement.

Culture

Location is sometimes only viewed through the perspective of time zones, but the culture of the outsourcing location is just as important. There may still be communication barriers despite speaking the same language, so a good rapport is necessary to establish a solid working relationship. Location is not just about the proximity, but also about the cultural compatibility you need.

Local Government Support

The country’s government support must also be identified before choosing a BPO provider. Understand the local government's incentives and the laws being passed to reduce the complexity of the current business procedures. Find out how simple it is to conduct business in your preferred nation and how long the assistance of the government will last.

The long-term success of outsourcing depends entirely on your ability to collaborate effectively and the timing of your execution. It could be tempting to accept an offer from a corporation that offers the most generous perks, but it takes time to realise the full benefits of a strategic business partnership.

In order for outsourcing to be successful for you, you need a relationship that begins with talent level, moves on to factors like company or cultural compatibility and location, local government support, and finally, costs. It also depends on the type of work you're considering; effective business operations demand more than just the technical know-how; they also need effective communication and understanding.

How to save 70% on your Human Resources by outsourcing. Free DIY guide.

Claim our latest E-Book for free and start building your own outsourcing project to face any economic turmoil well prepared.
Get the book

Frequently asked questions

Everything you need to know about our solutions

Most of our clients see cost savings of up to 50–70% compared to hiring locally without sacrificing quality. But more than just saving money, offshoring helps free up your local team, reduce burnout, and scale faster.

Yes. We take compliance and data security seriously. Our systems and processes are designed to protect your business and your data, and we ensure that every offshore team member follows strict confidentiality and compliance guidelines.

Our offshore teams are primarily based in the Philippines . A country known for its strong English communication, cultural alignment with Western businesses, and skilled talent pool across admin, finance, HR, and customer support roles.

We go beyond resumes. We assess skills, communication, professionalism, and cultural fit. You’ll receive only shortlisted candidates we’ve already screened and tested, and you’ll have final say through interviews. Plus, we support onboarding to ensure a smooth transition into your team.

We specialize in operational, back-office, and support roles. This includes recruitment assistants, finance staff, scheduling and allocations coordinators, admin, customer service, and more that is all tailored to your industry. If it's a process-based or support function, we can likely fill it.

We handle the full process from sourcing and screening to onboarding and ongoing support. You tell us what roles you need, and we find qualified offshore talent that fits your business. Once hired, they work as part of your team, reporting directly to you, while we handle HR, admin, and compliance in the background.

Still have questions?

Can’t find the answer you’re looking for? Please chat to our friendly team.

How to start saving up to 40% on HR costs

Get our free guide and start outsourcing to the Philippines
We care about your data in our privacy policy.

PLECO

We provide support to our clients in transforming the efficiency and productivity of how they work
© 2025 Pleco Inc. All rights reserved.
chevron-leftchevron-rightarrow-right