Types of Outsourcing Providers

Amy Pattinson
August 17, 2022
 Mins Read

Outsourcing refers to a non-core activity that a business will have an external party perform rather than the company performing it itself. It is the process of acquiring skilled resources through third-party businesses. The growth of outsourcing has resulted in a wide range of services available today. Aside from knowing and understanding what outsourcing is and how it works, it is also important to understand the various types of outsourcing. BPO empowers the ideal use of the scarce resource. Moreover, BPO services increase the focus of outsourcing firms on core business activities, thus increasing production. So, in this article, we will be discussing the different types of outsourcing providers. The various types of outsourcing providers can be classified depending on various types of services.

As we have the overview of types of outsourcing providers, now will the different types in it.

1). Professional Outsourcing

Professional outsourcing service provider covers different types of specialized, professional services. It is the practice of contracting third-party companies or professionals to execute a variety of separate tasks without the purpose of outsourcing a full function. When a company's operations are well-established and streamlined. Small jobs or tasks can miss out due to resources already being assigned to other important tasks. In such instances, businesses might outsource small jobs and side projects to individuals outside the company who can work on them independently. It comprises all specialized services like:

  • Purchasing
  • Legal
  • Digital marketing
  • Accounting
  • CAD
  • Administration

2). Multi-Sourcing

Multi-Sourcing enables you to combine the services you want to outsource. Mostly, it's a mix of IT and other business aspects. Therefore, it is ideal for big businesses that need to outsource a range of IT operations and infrastructure to different third-party vendors. However, multi-sourcing is a great alternative for any company that wants access to top specialists, wants an outcome-based strategy, and transparency in its IT projects. With Multi-Sourcing, there is less reliance on any single supplier, which promotes supply chain flexibility in the event of a problem, and because of a larger resource pool, you get the finest product and service quality at the best pricing.

3). IT Outsourcing

You can contact a provider just for IT services for your specific IT needs. IT outsourcing is the business practice of contracting other companies to perform information technology services such as software development, infrastructure solutions, and software support. In addition, IT outsourcing providers can provide a fully managed service. This means they accept complete responsibility for all IT maintenance and support. Alternatively, they can provide extra help for an internal IT staff as needed. Because IT outsourcing encompasses services such as networking and application administration, it is one of the most time-efficient options for companies that need to expand their digital operations swiftly. Following are the IT services that are commonly outsourced:

  • Application development
  • Web hosting
  • Application support
  • Database development
  • Telecommunications
  • Networking
  • Disaster recovery
  • Security
  • Data storage

4). Process-Specific Outsourcing

This type of outsourcing enables you to contact a provider for some specialist service. Process-specific outsourcing refers to outsourcing processes that are customized to a specific job or internal procedure. Nowadays, it is a common practice in the business world to hire an outside service provider that specializes in a certain service. Process-specific outsourcing allows organizations to not only save money. But also focus more on their core business tasks by reducing the time it takes to fulfill customer orders. Following are the three types of process-specific outsourcing:

  • Legal Process Outsourcing (LPO): This category includes all legalities, including litigation and regulatory compliance
  • Knowledge Process Outsourcing (KPO): Outsourcing knowledge development for product improvements, such as research and data analysis, is covered in this category
  • Recruitment Process Outsourcing (RPO): RPO covers all areas of outsourced recruiting, including posting management, applicant monitoring, and evaluation

5). Business Process Outsourcing (BPO)

Business process outsourcing (BPO) is a business strategy in which a company hires an outside service provider to handle an important company function or task. BPO can assist you with more mundane business tasks, such as administration, correspondence, and scheduling. In general, businesses use BPO in two areas: back-office operations and front-office operations. Back office BPO refers to a corporation that outsources its key business support functions such as accounting, payment processing, IT services, human resources, regulatory compliance, and quality assurance to outside experts. On the other hand, front office BPO jobs usually comprise customer-related services such as tech support, sales, and marketing. Outsourcing BPO provides businesses with various advantages, such as timely and accurate reporting, increased productivity, and the capacity to quickly transfer resources whenever it is necessary.

6). Project Outsourcing

It is feasible to outsource all or a portion of a project to a service provider. It is a common strategy when a business lacks the time, skills, or funding to complete a project. In addition, redesigning a website, creating a large amount of content, and conducting marketing campaigns are examples of projects that can outsource.

Conclusion - Types of Outsourcing Providers

Nowadays, different types of services can be outsourced. Do you have to get services outsourced or not? It really depends on your organization's needs, how much money can be spent, and how soon they need the work to be done. But, outsourcing your company's most time-consuming processes to third-party service providers can sometimes provide a major competitive advantage. Invensis is a reputed leader in empowering numerous global businesses and organizations through high-quality back office BPO services that promote enhanced business efficiency and improved bottom line. Moreover, we also offer services like IT Services, Finance & Accounting, Call Center Services, e-Commerce Support Services, and many more to meet your business.

About Invensis

Invensis Technologies is a leading global provider of IT-BPO services with a reputation for excellence. Our carrier-grade infrastructure and commitment to empowering clients around the world to achieve business transformation and growth through our services set us apart from the competition. With over 5,000 staff and more than 22 years of experience, our company has been providing quality services since 2000.

Invensis delivers intelligent contact center and back-office functions for businesses. Invensis is an ISO 9001 and 27001 certified organization and has achieved HIPAA compliance to provide high-quality and secured end-to-end outsourcing services. We have a strong base in the USA, Canada, Australia, UK, Ireland, Germany, and other countries serving over 200 clients. Invensis is powered by innovative processes, and technology solutions and provides holistic automation from design to implementation and continuous development—along with data security. Our solutions are tailored to help businesses achieve their strategic goals and help them become industry leaders.

Article by
Amy Pattinson

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