Business Process Outsourcing

How does Business-process outsourcing work?

Business-process outsourcing (BPO) employs a third party to take responsibility for a complete business function, such as HR or finance. The trend towards outsourcing has grown due to globalisation as businesses seek alternative ways to improve their operational effectiveness. It involves close interaction between the outsourcing provider and the client. Companies often outsource their back of house roles – these include functions which do not directly come into contact with customers but are needed to facilitate smooth operations. In contrast, front of house roles come into direct contact with customers, such as the sales or customer support department.

An effective BPO strategy can enhance efficiency and lower costs, creating an environment where companies have the freedom to focus on core competencies that drive growth. By outsourcing the tedious and laborious tasks to a third-party provider, businesses can improve their company focus. Employees can be more efficient when they are not consumed by the day-to-day processing and administration activities. This allows businesses to focus on their core objectives and tasks at hand. In doing so, BPO empowers organisations to exceed their goals and become a strong competitor in their respective markets.

What can be outsourced?
BPO services can include payroll, accounting, telemarketing, data processing, social media or digital marketing, customer service, and more. Companies often outsource tasks that are repetitive or administrative in nature. Alternatively, companies may outsource functions which require expert knowledge to trained specialists. For example, a company may outsource all their recruitment to an external third-party who specialises in this area of expertise. This provides the company with access to HR specialists and experts on matters of employee law, pension regulations, data protection laws and other similar matters. Outsourcing to a specialist is much cheaper than employing these specialists directly. These specialist firms are often cheaper because they benefit from economies of scale, providing similar services to many other organisations.

We have collated some of the most common tasks that are often outsourced:

Call Answering

  • Live answering
  • Virtual Receptionist
  •  Overflow Call Handing
  • After-hours Call handling
  • Escalation services


  • General Bookkeeping
  •  Accounts Payable & Receivables
  • Bank Reconciliation
  • Debt Collection
  • Financial Statement Reporting
  • Payroll Administration


  • Data Entry & Processing
  • Appointment Scheduling
  • Calendar Management

IT Management

  • Help Desk
  • Website Development
  • Software Updates

Digital Marketing Support

  • Graphic Design
  • Scheduled Posting
  • Content Creation
  • Management of Social Media Accounts

Offshoring – How does business-process outsourcing work in another country?
Offshoring is often seen as risky and complicated, resulting in a loss of control of your brand or process quality. In saying that, outsourcing has become a growing trend in business practice and more companies are offshoring their business processes to improve their efficiencies and reduce their operating costs. The key to successful outsourcing in another country is selecting the right provider. The provider must be able to recruit the right people with appropriate recruitment and screening practices. This involves short-listing, interviewing, training and ongoing performance management. There are various offshoring delivery models – some work off dedicated team member where the client has direct control of the employees, whereas other providers managers the delivery of those tasks themselves.

BPO can be situated in a different country, such as the Philippines, where language capabilities are comparable to those in the home country. Companies often relocate business functions to another country for the cost saving benefits. With the wage variances in the Philippines being a fraction of the price compared to Australia and other Western countries, it is not surprising that businesses are seeking cheaper alternatives. These employees are trained and equipped with the information needed to perform the work to a high standard.

In addition, low-economy countries provide significant labour benefits to westernised countries. As of June 2021, the unemployment rate in the Philippines was higher than 7.1%, equating to 3.4 million people without jobs. Due to the shortage of jobs in these countries, subcontracting businesses are likely to find skilled workers who can perform their tasks to a high standard. Another driving factor is that most Philippians are educated with strong English-language skills. Strong proficiency in English reduces language or communication barriers, therefore bolstering BPO efficiency.

Furthermore, offshoring allows organisations to work closely with professionals from other countries. The establishment of these networks can open the door to new markets, potentially leading to higher sales, economies of scale and improved profitability. Offshoring opens the door to new markets that businesses may not have been exposed to.

Customised Outsourcing with TMC
TMC is an outsourcing provider located in Melbourne, Australia. We have a proven record of working with all types of businesses, from large organisations to sole traders. Our ability to deliver measurable business outcomes is backed by over 40 years of experience. We have the best people and technology to ensure optimal delivery and performance at affordable prices.

TMC’s call-centre can assist with live answering, after-hours, overflow call handing and more. Our clients are provided with the option to outsource on a long term, short term or ad hoc basis. Business Intelligence (BI) reporting is also available so you can access aggregated data to recognise trends and opportunities for your business. If your service requires extra supervision, TMC can provide a dedicated team member who directly manages the employees delivering your outsourced service. Our pricing models are transactional based on per unit rates or work delivered. Where you opt for dedicated resources, these are charged at agreed hourly rates.

I want to discuss my BPO options – What should I do?
If you are interested in discussing a solution for your business – Please fill out the website contact form or alternatively call 1300 728 268 to discuss your options.

We also have a team located in the Philippines, providing offshoring solutions for over 1000 clients. If you are interested in our offshoring solutions, please get in touch with our team in Melbourne on 1300 609 677, or alternative fill our website contact form.

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