As the global BPO market grew from $92.5 billion in 2019 to $232.32 billion in 2020, businesses worldwide started to see outsourcing opportunities like never possible before. Especially now, in an era of remote work, side hustles, and the gig economy.
Not all outsourcing is the same. BPO has two general types, Front Office BPO and Back Office BPO. Let's identify what they are, the main differences, and their potential benefits.
What is Front Office BPO?
Front Office BPO is outsourcing customer-facing roles and business processes. They are the ones that are interacting with your customers and influencing their experience with your brand.
According to Deloitte's 2024 Global Outsourcing Survey 50% of executives are already outsourcing some of their front office services and its no wonder. Why?
Examples of Front Office BPO:
Customer Support: Telephonic calls, e mails, chatting with customers issued by them.
Sales and Lead generation: Approaching the prospective customer and making a sale for him.
Technical Helpdesk: Helping the customers with technical problems related to product/software.
Telemarketing: Service or products marketing by telephone.
Social Media Management: Customer engagement across social sites and online reputation management.
Typical Front Office Outsourcing Partners:
Online marketing companies
Call centers and support vendors
IT helpdesks
Sales consultancies
Primary Skills Required:
Human and communication skills
Problem solving and sales exposure
Emotional Intelligence
Understanding language and cultural nuance
What is Back Office BPO?
Backoffice BPO is about the things that keep a business running, and is distinct from frontoffice BPO, which involves customers. Back office operations are needed to run the business, but they do not involve customers. Therefore, back office operations do not involve direct work with customers, while being an integral part of a business's operations.
Back Office outsourcing is especially strong with very small businesses according to Clutch 2023. BPO sales teams provide efficiency and cost effectiveness that very small businesses can use to access skill sets that wouldn't not likely have full time employees for.
Examples of Back Office BPO:
Data Entry and Management - The process of capturing, organizing, and tracking internal data
Accounting and Bookkeeping - The management of tracking financial records, bills, accounts payable, and accounts receivable
Human Resources - Employee recruiting, hiring, and management
IT Support and Maintenance - Getting software and hardware to operate correctly
Legal and Research Services - Outsourcing paralegal duties, compliance work, and analytical work
Supply Chain Management - Logistics related to inventory, purchasing and transport
Key Skills Needed
Technical skills
Critical and analytical thinking
Attention to detail
Knowledge of compliance requirements
Regulation of processes
Front Office BPO & Back Office BPO: What's the difference?
Having established the key differences between Front Office and Back Office BPO, you now have the option to use one or both—or, indeed, both.
Customer Interaction
Front Office BPO: Has direct contact with the customers. Think sales calls, support chat, or social media responses.
Back Office BPO: Takes place behind the scenes—think about bookkeeping, payroll, or technical support.
Revenue Generation
Front Office BPO: Directly affects revenue by inducing sales and enhancing customer satisfaction.
Back Office BPO: Supports revenue indirectly by maximizing efficiency and minimizing operating costs.
Time Sensitivity
The Front Office jobs require immediate feedback, especially in customer service.
Back Office work typically has closer time constraints, a focus on accuracy and consistency.
Performance Measures
Front Office performance is measured by:
Customer satisfaction
Response times
Conversion rates
Back Office performance revolves around:
Accuracy and compliance
Cost savings
Process efficiency
Why Both Matter?
Both Front Office and Back Office BPO are necessary to business growth—but they do different tasks. Front Office BPO improves your brand, improves customer experience, and increases sales. Back Office BPO makes your business run smoothly, compliant, and in order. The intelligent path is to examine your existing team, budget, and objectives. And then determine what can be outsourced to increase productivity without sacrificing quality.
Final Thoughts:
Selecting the Right BPO to Your Business In the competitive business world today, BPO is no longer a cost cutting measure—it's a strategic initiative. If your company needs customer-facing or internal solutions, the appropriate activity can be outsourced to have a huge impact. Don't forget that your company does not necessarily have to do everything in-house. Determine what you do best and let the others be done by the experts—front and back office BPO providers.