The business process outsourcing (BPO) industry has been growing continuously since it started. According to Smartsheet, the sector is worth over $300 billion globally, proving its popularity among businesses, whether big or small.
This industry can be divided into three categories. The divisions are based on the location of the outsourcing company.
Often known as local outsourcing, this division refers to working with a BPO company that is located in the same country as the contractor’s business. Both parties do not necessarily have to be in the same location or near each other. Sometimes, they may be in different cities or states.
Some of the benefits that onshore outsourcing offers are the following:
- The lack of or minimal language barriers and cultural differences between in-house and outsourced staff
- Having the same or closely aligned time zones with the outsourced team
- Faster communication
- Easily access an outsourced staff without leaving the country
This type of outsourcingoccurs when the BPO company is located outside the contracting company’s country and has a different time zone. One scenario that involves offshore outsourcing is when a business in the US outsources to a company in the Philippines.
Offshore outsourcing can provide any company with the following advantages:
- Access to a larger pool of global talents
- Lower costs
- Ability to work 24/7
This type of outsourcing happens when a BPO company is located in the contractor’s neighbouring countries. For example, if your business is in the USA, an outsourcing company in Mexico can be considered a nearshore vendor.
- Referred to as the perfect balance between onshore and offshore, nearshore outsourcing offers various benefits that are also provided by the two aforementioned categories:
- Lower costs
- Access to a larger pool of talents
- Reduced time zone differences
- Less significant cultural differences
- Ability to easily access outsourced staff for a more effective working relationship
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Ezy Outsourcing Hub is here to provide you with all the outsourcing solutions that you need. We offer BPO services for various industries, including retail, real estate, accounting, and security services. Get in touch with our team today to learn more.