Is Business Process Outsourcing (BPO) a Reality for Small Businesses?

Sure, it can feel very exciting when you finally start your own business, especially when your startup is something that you have always been passionate about. However, the reality can be quite different than this.

Why? A new business in its earliest stages has many parts that a business owner needs to take care of. And juggling all these responsibilities is never easy. This is when BPO enters the picture.

While you must do well in all the moving parts of your startup or growing business, it is unnecessary to do so alone. Business Process Outsourcing (BPO) can help you manage your processes to save money, time, and other resources. You can also use these resources elsewhere in the business for greater success.

By using BPOs, you can increase your managerial bandwidth and reduce your work burden at the same time. This increases efficiency and reduces costs to a great extent. Let’s explore how BPO helps startups and small businesses.

What is Business Process Outsourcing?

Simply put, Business Process Outsourcing (BPO) involves contracting another company to carry out certain business processes on your company’s behalf. Then, this third-party company becomes responsible for the contracted business functions or operations.

In other words, you are carrying out business process outsourcing when you hire another firm for your company’s job. Almost all businesses that don’t have a full-time legal team, IT team, marketing team, etc., use BPO.

Usually, companies only implement BPO for running integral processes only. This means that they do not outsource processes unique to their business or help them stand out from competitors.

That said, BPO providers still add value to the customer experience and help a company improve in several ways.

Common Processes That Can Be Outsourced

The world of small businesses is continually adopting and implementing BPO for greater growth and success. Here are common processes that small businesses prefer to outsource from a BPO provider.

Accounting and Finance:

BPO can help a company maintain the company’s overall finances. This can include different operations from auditing to payroll, etc.

Digital Development:

Small businesses that need mobile applications or websites usually outsource these projects to digital development BPO companies. They often perform a better job due to their experience and knowledge of technology.

IT Operations :

IT operations are perhaps one of the most common processes that small business outsources. It is especially significant for unequipped companies for in-house handling of such processes.

Some other common processes outsourced by small businesses include digital and niche marketing, customer support, human resources, etc.

Is BPO Right for Your Company?

BPO has many perks, but it does not come without disadvantages. Make sure you carefully evaluate the pros and cons.


  • Enhance speed and efficiency
  • Enable access to the latest technology
  • Quick, precise, and accurate reports
  • Cuts down costs
  • Reduces labor and training
  • Flexibility for choosing relevant services


  • Dependency on BPO providers
  • Communication issues
  • Breaches in privacy

Bottom Line

Business process outsourcing has many benefits for any business. But it can completely change the game for small businesses. Startups and growing businesses can access the latest technologies and strategies without hiring new labor or wasting time on trial and error.