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Benefits And Risks Of BPO

The decision to outsource your business procedures has both benefits and drawbacks. Let’s examine them more closely:


Here are some of the main advantages of using a third-party provider.

  1. Prioritize your core competencies

Although vital, tasks like data entry and payroll aren’t what your company focuses on.

Your organization may concentrate on its core business operations if you outsource these administrative duties to BPO services. If you own a marketing agency, for instance, outsourcing your administrative work can free up more time and resources for you to develop client-specific marketing plans!

As a result, your company may concentrate on growing up the value chain, which can provide it a significant competitive edge.

  1. Saving Money

This is the key justification for why companies use BPO services.

59% of businesses outsource in an effort to reduce costs.


When you hire internal staff, you must shell out a sizeable sum for training, supplies, tools, and salary. A workspace or office must also be rented.

However, all these expenses are reduced when you outsource a portion of your business.

Additionally, the majority of BPO providers are situated in developing nations with lower living expenses. In this method, you may hire top people for much less money!

  1. Access to Talented People

You can access the best minds on the planet when you outsource your business! Your access to talent is no longer restricted by location!

Additionally, they’ll be less expensive to hire than a full-time office staff because you’re simply using them for specialized duties.

They will also be entirely focused on their work because they are only engaged for certain services, which will increase their productivity.


Despite the benefits of outsourcing, there are also a number of negative aspects:

  1. Risks to Data Security

You give your data to a third-party vendor when you outsource your task. Since this information is shared outside of your firm, both hackers and outsourced company employees may steal it.

When the service provider’s data center is located abroad, maintaining security can be challenging because their privacy regulations might not be the same as yours. It would be challenging to file a lawsuit in the event that something goes wrong.

How can you defend your company against these dangers?

Have a lawyer establish contracts that safeguard your business and the BPO service if you’re dealing with patents, copyrights, or other sensitive information. Even NDAs and other contracts might be signed to safeguard your privacy.

  1. Communicative Problems

You can conduct face-to-face interactions with internal staff members in a matter of minutes, making communication with them straightforward.

However, giving feedback to staff members of a third party might be a tiresome process.

This is what can cause contact with a BPO service provider to be delayed:

  • language differences
  • discrepancies in time zones
  • varying degrees of agency-wide input

These flaws might reduce productivity and cause challenges with your company’s operations.

How can the communication gap be closed?

Consider writing instruction manuals that cover any problem your vendors might encounter. Systems for virtual communication like Slack and Zoom can also be used to communicate more effectively.

  1. Monitoring Problems

It can be challenging to keep track of your BPO staff’s performance when you outsource.

Consider this.

Thousands of kilometers may separate you from your BPO provider.

How would you confirm:

  • When they are engaged in work
  • If people visit unproductive websites while at work
  • If your tasks really did take that long to finish
  • How do you evaluate their performance then?

You may use effective performance monitoring tools.





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