Guide on Business Process Outsourcing(BPO)
                     GUIDE ON BUSINESS 
PROCESS 
OUTSOURCING(BPO)
WHAT IS BUSINESS PROCESS 
OUTSOURCING (BPO)?
Business process outsourcing (BPO) is a business 
practice in which an organization contracts with an 
external service provider to perform an essential 
business task.
Source: searchcio.techtarget.com
CATEGORIES IN BUSINESS 
PROCESS OUTSOURCING
OFFSHORE
In this category, the company outsources its business 
activities to the BPO vendors located outside of its own 
country. For example, the company is located in USA 
can use a BPO vendor from the Philippines. 
Source: kwantics.com
NEARSHORE
In this category, the BPO vendors and the contracting 
companies are located in a neighboring country. For 
example, an Indian company is taking a BPO vendor’s 
service, which is located in Bhutan. 
Source: kwantics.com
ONSHORE
In Onshore category, the BPO vendor and the company 
is located in the same country, but they may be 
located in different states or region of the country. 
For example, the company located in Chicago dealing 
with BPO Company located in Washington, but both are 
located in the USA. 
Source: kwantics.com
TYPES OF SERVICES
KNOWLEDGE PROCESS 
OUTSOURCING (KPO)
As its name suggests, it processes those activities that 
need a high degree and expertise. KPO supports the 
processing of core business functions, which are an 
integral part of the business.
KPO works around research, analytics, Microsoft Word 
and Excel, and some other expertise domain. KPO 
employs skilled, professional, and expert peoples who 
are qualified for the particular field.
Source: kwantics.com
LEGAL PROCESS 
OUTSOURCING (LPO)
LPO performs functions like traditional document 
management, legal drafting, law office management, 
litigation support. The few newer legal services 
provided are legal writing, scheduling, legal research, 
and legal summary.
Source: kwantics.com
INFORMATION TECHNOLOGY-
ENABLED SERVICES (ITES) BPO
The ITES includes a large variety of functions that uses 
Information Technology to increase the quality and 
efficiency of service. The renowned examples of ITES 
are credit card processing, telecom call centers, and 
back-office accounting.
Source: kwantics.com
TRAVEL BPO
 In Travel BPO, the company outsources its travel-
related processes to a third-party firm. When the 
travel-related functions like hotel booking inquiry take 
more time and cost, the company outsources those 
functions to Travel BPO firm.
Source: kwantics.com
RISKS OF BUSINESS 
PROCESS OUTSOURCING
• Overdependence On Service Providers: The 
Company that employs BPO vendors considers the 
vendor as part of the workflow. 
• Communication Issues: The communication issue 
may occur due to a language barrier or difference in 
accents. It is the most common risk, and mostly 
Offshore and Nearshore vendors frequently suffer 
communication issues with the company.
Source: kwantics.com