Small Business Software Reviews, Services Insight and Resources

Best Small Business Software Reviews, Services a steady flow of information, insight and inspiration for small business owners and operators: 2021, 2022, 2023, 2024.

Top 5 Business Process Outsourcing Companies

Thousands of companies in the U.S. alone contract with a third party to handle specific areas of their business that are not the core focus of their company. The third party also referred as “providers” manage and run every aspect of the outsourced area.

Business Process Outsourcing also known as BPO has been around for quite some time. But in recent years, the growth of this industry has sky rocketed.

The Main Incentive For A Company To Outsource

Companies that contract with outsourcing providers save a substantial amount of money. The expense of hiring an in house staff consisting of several individuals generally includes high salaries, health insurance costs, contributions to retirement funds and taxes. All of these expenses are eliminated when a company chooses to outsource.

Read More: Top 10 Best Outsourcing Software Development Companies

The provider hires and manages each person on the team. Plus the third party also oversees the entire area. When problems arise the provider deals with the situation. Now a company can focus all of its efforts on it’s most important area of business.

What Are The Most Outsourced Areas?

Business process outsourcing is used to manage several areas that are not considered a core part of a company’s business. But are needed in order to run their business. So these areas would include, bookkeeping and accounting, employee benefits, customer service call centers and other areas that typically provide support for a company’s infrastructure.

There Are Different Kinds Of Outsourcing

If a U.S. company outsources from India this would be called “offshore outsourcing.” If a U.S. company instead outsourced from a neighboring country like Canada, this would be called “near shore outsourcing.” Finally, “onshore outsourcing” would be when a company outsources from a provider within in the same country.

The key to success for any of the various types of outsourcing is finding the right provider and making sure they are experienced and competent in the area to be outsourced.

Read More: Top 15 Sales Outsourcing and Marketing Companies

Downsides To Outsourcing

When a company opts to try business process outsourcing, it is taking on some risks. A company whose core business relies on keeping their customer information private or deals in some kind of sensitive data runs the risk of security issues. The idea of allowing a third party access to a company’s trade secrets and customer information is a genuine cause for concern.

To help minimize security issues, companies need to manage the “outsourcing process.” This can be achieved by taking a step by step look the process itself. Identify and make sure that specific needs and concerns are dealt with before outsourcing begins.

Outsourcing Trends

The future of outsourcing continues to grow at a record pace. The trend towards “offshore outsourcing” continues to grow worldwide. More and more companies, even very small companies are taking advantage of outsourcing non essential tasks. The trend for offshore outsourcing allows a company to hire top quality talent at extremely lower costs in countries where the costs of living is substantially lower than that of the U.S. for example.

In addition to lower costs, many outsourcing providers are also offering “one stop shopping.” Instead of a company hiring one provider to handle payroll and another to handle software development, many providers can offer both. Still at a substantially lower cost.

IT outsourcing of this type is not likely to slow down anytime soon. The comparative low costs, are simply to good not to consider. The list of providers continues to grow. So there is no shortage of providers to choose from. As the economy world wide continues to show no signs of a turnaround, businesses will continue to look for ways to save money and increase profits.

Read More: Top 8 Payroll Outsourcing Services for Small Business

Competition can be fierce. For smaller companies, outsourcing may become mandatory. Without huge budgets to compete with bigger companies, they have to find a way to stay competitive without going bankrupt. Outsourcing can cut operating costs and free up more capital to reinvest in more important areas of their business.

Business process outsourcing has become an accepted way of doing business. Large corporations have outsourced for years. But now very small companies are recognizing the obvious advantages. A small company that hires a virtual personal assistant, can give the impression of a much bigger company without the price tag.


Top 5 Business Process Outsourcing Companies:


Invensis is a leading Business Process Outsourcing (BPO) services company providing cost-effective customer service across industries for a wide range of clients worldwide.




DDC OS USA, the first US-based BPO clients out of Georgia operation. We are specialized in the AP, Freight/LTL Carrier, Insurance, Medical Payment and Shared Services markets.




Fingent’s BPO services constitutes of full and multiple process outsourcing such as data cleansing, data entry and data verification services for your business.




Expert industry market research to help you make better business decisions, faster. Industry market research reports, statistics, analysis, data, trends and forecasts.




The Hackett Group: The business improvement leader for digital transformation, enterprise analytics and enterprise applications with unparalleled benchmarking and best practices implementation capabilities.




Outsourcing Pros And Cons – Offshore vs Onshore

Whenever you hear about outsourcing pros and cons, the perception is that only large corporations with thousands of employees and millions upon millions of dollars to spend are the only ones affected. But thanks to technological advances, every business from tiny one person self-employed entrepreneurs to small companies consisting of a handful of employees can take advantage of outsourcing.

The U.S. spends billions of dollars to hire outsourcing providers to manage areas non essential to their core business. Although outsourcing is a sore spot for most Americans, and the economy slowing the growth in some areas of BPO, American companies continue to spend money outsourcing. The number one reason is to reduce costs.

So which one is right for your business?

Onshore – Is when a company chooses to hire an outsourcing provider located within it’s own country.

Offshore – This is when a company hires an outsourcing vendor from another country.

Questions To Ask Yourself

Are you looking for Business Process Outsourcing (BPO) or IT Outsourcing (ITO)?
How much time can you commit to managing a vendor?
Are you comfortable allowing a third party handle sensitive customer data?
Are you concerned about losing control of the area you’re considering outsourcing?

In addition to asking specific questions, before you sign on the dotted line, it’s important to know some outsourcing pros and cons.

Offshore: Pros

  • Cheaper operating costs
  • Focus on core business
  • Cheaper labor
  • Talent with specialized skills
  • Higher productivity
  • A global talent pool
  • Lower labor training costs
  • Project based turn around time usually much faster
  • Access to very high quality technology
  • Performance-based business model

Offshore: Cons

  • Managing outsourcing provider can be difficult and time consuming
  • Loss of direct control over part of your business
  • Can impact customers negatively (Call centers and customer support especially)
  • Non native English speaking providers creates communication problems
  • In house staff of employees may feel threatened.
  • Decrease in moral.
  • Outsourcing provider may not be financially stable

Of course these are only a few of the pros and cons associated with offshore outsourcing. Every company will have their set of experiences. Now let’s take a look at the outsourcing pros and cons for onshore vendors.

Onshore: Pros

  • Unlike offshore providers, onshore providers would be safe from future legislation.
  • Access to highly skilled professionals
  • No barriers when it comes to language and culture
  • Time zone difference is within 1 – 3 hours compared to 6 or more if offshore.
  • Keeps American workers employed
  • High quality
  • Financial stability not normally an issue
  • HOM The Homeland Onshore Model allows U.S. companies to hire IT talent onshore at rates competitve to offshore providers.

Onshore: Cons

  • Higher labor costs

The Verdict

It’s clear that both options of onshore and offshore offer distinct advantages. The biggest disadvantage for onshore providers is the cost factor. Since many companies particularly during a recession are looking for ways to save money, outsourcing offshore quickly becomes their first choice. The prospect of reducing costs, makes the cons of going offshore worth the risk for some organizations.

Average rating 5 / 5. Vote count: 12

No votes so far! Be the first to rate this post.