How does Business-process outsourcing work?

Business-process outsourcing (BPO) engages a third party to take responsibility for a complete business function. The trend towards outsourcing is driven by an increase in globalisation as businesses seek alternative methods to improve business efficiency. Companies often outsource their back of house roles which do not directly come into contact with clients. In contrast, front of house roles come into direct contact with clients, such as the sales team.


An effective BPO strategy can improve effectiveness and decrease expenses, creating an environment where businesses have the ability to focus on core competencies. By outsourcing the tedious and laborious tasks to an outsourcing provider, businesses can improve their company focus. Employees are more efficient when they are not consumed by daily administration tasks This allows businesses to focus on their core objectives and tasks at hand. BPO empowers organisations to reach their targets and become strong competitors in their respective markets.

Offshoring – How does business-process outsourcing work in another country?

Offshoring has become a growing trend in recent years as more companies outsource to improve their efficiencies and reduce their operating costs. There are numerous offshoring delivery models – some work off dedicated team members where the client has direct control of the employees, whereas other providers manage the delivery of the tasks themselves for the client.


The key to successful outsourcing in another country is selecting the right provider. The provider must be able to recruit the right people with appropriate recruitment and screening processes. For example, short-listing, interviewing, training and ongoing performance management processes are imperative to successful offshoring.

Companies offshore to the Philippines because their language capabilities are comparable to Australia. With the wage variances in the Philippines being a fraction of the price compared to Australia and other Western countries, it is not surprising that businesses are seeking cheaper alternatives. As of June 2021, the unemployment rate in the Philippines was higher than 7.1%, equating to 3.4 million people without jobs. Due to the shortage of jobs in these countries, subcontracting businesses are likely to find skilled workers who can perform their tasks to a high standard. Training and ongoing performance management ensures that the work is reviewed in alignments with company standards.

Furthermore, offshoring may open the door to new markets as organisations to network with professionals from other countries. These relationships can create new opportunities, leading to higher growth, sales, economies of scale and improved profitability.


What can be outsourced?


BPO services may include payroll, accounting, telemarketing, data processing, social media or digital marketing, customer service, and more. Companies often offshore tasks that are repetitive or administrative in nature.


These tasks are commonly outsourced to another country:


Data Entry

  • Data entry



  • General Bookkeeping
  • Accounts Payable & Receivables
  • Bank Reconciliation
  • Debt Collection
  • Financial Statement Reporting
  • Payroll Administration



  • Data Entry & Processing
  • Appointment Scheduling
  • Calendar Management


IT Management

  • Help Desk
  • Website Development
  • Software Updates


Digital Marketing Support

  • Graphic Design
  • Scheduled Posting
  • Content Creation
  • Management of Social Media Accounts


I want to discuss my BPO options – What should I do?

Link BPO has a team located in the Philippines who offers offshoring solutions for over 1000 clients. If you are interested in Link BPO’s offshoring solutions, please get in touch with their team in Melbourne on 1300 609 677, or alternative fill their website form.