Contact Us What is BPO, Types of BPO and Emerging BPO Trends in 2021

What is BPO, Types of BPO and Emerging BPO Trends in 2021

Business process outsourcing (BPO) has gained popularity with companies ranging from Fortune 500s to startups over the last two decades. The global BPO industry is forecast to reach a revised market size of US$230.2 billion by 2027 exhibiting a CAGR of 5.2%, after posting a devastating decline of -28.7% in the year 2020.

Thus, the question that arises is ‘Why not use BPO?’ and ‘What makes outsourcing essential?’

1. Adaptive to provide to the clients

Outsourcing non-critical functions allow organizations to focus on core competencies and essential business functions. Moreover, with BPOs having remote working solutions in place, companies no longer have to worry about the quality and delivery of the work. The process of meeting and scaling up to the company’s need can be quicker and easier.

2. Cost efficiency

Outsourcing operations lead to more cost savings because of economies of scale and specialized processes. Moreover, American organizations can accrue tax savings through outsourcing. Also, companies that outsource their business can adopt variable cost models instead of being bound to a fixed cost model.

3. Better Performance

Companies can hire specialized BPO service providers for different processes. E.g. Lead generation and nurturing, political call centre, improving the sales and marketing efforts. Moreover, with numerous productivity tools and technologies being implemented – the 2020s can be the era of tech-enabled soaring productivity.

Now that we have told you how BPO can improve business efficiency, let us understand the types of BPO services:

1. KPO

When companies outsource work to a service provider for their specialization it is called Knowledge Process Outsourcing. Companies usually avail their expert services for a specific business function or for their domain expertise or both.

2. LPO

Legal Process Outsourcing is similar to KPO but is limited to legal services. They provide their expert services such as conducting legal research, providing legal advice and so on. The services are typically used for back office outsourcing.

3. RPO

Research Process Outsourcing is also a type of KPO which basically conducts research and analysis function on behalf of businesses.


Information Technology Enabled Services is a type of BPO that delivers IT services by leveraging technology. Some of the work which ITES BPO conducts are technical support, data warehousing, IT service desk and such.

Emerging BPO Trends in 2021

1. Focus on social media

Social media is a game changer. Companies have now realised that and want to gain first-hand insights on customer engagement and trends as well as into product issues and address them in real-time. As a result, BPO service providers will now have to invest in new technologies, tools and teams that can drive business intelligence through social media

2. Startups as BPO customers

Startups and small businesses are constantly under pressure to succeed and show profits. To cut costs, they are very likely to outsource talent to build their business ideas. Thus, a well-managed service provider or a BPO company can help startups and small businesses to concentrate on their business and improve their bottom line.

3. Transparency

It is a known fact that transparency results in better partnerships between clients and suppliers. BPOs are bound to keep some level of secrecy. However, with smaller businesses and startups opting for BPO services, they are now bound to ensure a higher level of transparency.

With the focus on businesses to run cost-effectively, the BPO industry is placed on a better side and the outlook for the global Business Process Outsourcing industry is highly positive in 2021.


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