There is this typical norm where in when we speak of BPO, a lot of people immediately think about is having to answer calls. To put it into simple words, when we speak of BPO, what people only know is that, it is a “call center”.

There is no doubting that the BPO industry in the Philippines is now one of the leading source of job opportunities here in the country. More and more foreign companies have seem to be putting their trust on Filipinos to help them with their businesses. At our present time, the BPO industry in the Philippines is continuously growing and has even expanded to different provinces.

Now that we have all been well aware of its existence as well as the vast growth of this industry in our country, i think it’s about time that we educate ourselves with the real meaning of BPO.

Is there a difference between BPO and Call Center?

Business Process Outsourcing (BPO) is a subset of outsourcing where in businesses hire a third party to perform certain tasks. Mainly non-core responsibilities such as: customer service and human resources management. Call center on the other hand is one type of service that the BPO industry offers. As a matter of fact, Philippines is considered to be the world’s call center capital.

However, business process outsourcing is not just focused on call center. There are actually different types of services that the BPO industry may offer. In the Philippines, although call center remains to be on top of the outsourced services by foreign companies, there are also other services that are also presently being outsourced:

Information Technology (IT) Services

This type of outsourcing is centered on computer and Internet related work mainly, programming, software development, help desk support network administration and data center management.

Human Resource (HR) Services

This type of bpo service often handles the company’s recruitment, payroll including employee management. Other tasks included are:

  • Wages and withholding income tax computation
  • Employee document administration and management
  • Searching and screening of job candidates

Financial and Accounting Services

This helps companies in mostly their financial and accounting tasks. Included in this type of service are:

  • Accounts payable and receivable management
  • Bookkeeping and accounting
  • Auditing, reporting and financial analysis
  • Tax reporting

Data Entry Services

Data entry services helps companies to handle their data capture, documentation, filing and processing of forms, compilation, updating online catalogues and creating database.

In Conclusion

Business Process Outsourcing (BPO) is actually a great help for companies to reduce their costs. This remains true especially when foreign companies choose to outsource in the Philippines. One of the main reasons why foreign companies always choose the country is because of the quality services and the lower costs.