Debunking The Myths About The BPO Industry

Mar 9, 2022

The ongoing global pandemic and economic crisis have not stopped companies from outsourcing their customer support and other operations. In fact, more than two-thirds of large U.S. companies are currently outsourcing some portion of their workforce.

Outsourcing business processes can help with tedious and time-consuming tasks and let one focus on the key operations of a business. Despite its widespread adoption, the BPO industry has been struggling with its share of myths and misconceptions that needs to be addressed right now.

Myths surrounding the BPO industry

BPO services are costly

There are many misconceptions that BPO services are more expensive than running certain specific processes in-house. Where in fact, BPO is a cost-saving exercise. According to Outsource Accelerator, outsourcing can help companies reduce an average of 70 percent of their labor costs.

The cost of hiring, training, and retaining an in-house employee is expensive and can be more than the actual cost of engaging a BPO service provider.  Moreover, with the right partner, businesses can outsource specific processes that may not be part of a core business area and maintain control over quality and service delivery with the right partner.

It is important to note that choosing the right BPO company is critical. This means partnering with a company with the requisite expertise to handle the processes without compromising cost and quality.

The BPO industry does not take privacy seriously

While some outsourcing service providers do not provide adequate levels of privacy, most of them are very focused on protecting client data. Business Process Outsourcing companies often perform background checks on their employees to ensure trustworthiness and no history of illegal activities. Additionally, companies ensure that all client data is protected in a secure environment with proper encryption standards such that they are only accessible to authorized employees with special access codes. Many companies have certain certifications that attest to their data security and privacy measures, thus preventing any security concerns from clients.

BPO services are only for large companies

Small companies have limited resources and a lot to achieve. Some lack the expertise to perform specific tasks. The employees are often overworked and short on time. Using a BPO service is an excellent way for such companies to save time and money without compromising the quality of work done.

While most people think that BPO companies only work with larger corporations, this is not true. Many small to medium-sized enterprises (SMEs) have benefitted from adopting outsourcing solutions. Some BPO companies even offer a range of services designed to meet SMEs’ specific needs.

The BPO industry does not have a requisite workforce

One might think that the BPO industry consists of inexperienced and unskilled workers. However, this is not true. BPO companies base their hiring criteria on multiple factors such as the applicant’s experience, skills, education, and certifications. BPO companies also take their employees through customized training programs based on the project requirements. Additionally, they are trained on the fundamentals of customer service to ensure that they are equipped to handle client concerns.

BPO industry consists of only call center work 

The BPO industry has diversified and evolved over the last couple of years, with companies now building a niche in industries and the kind of services they offer to build expertise. Call center services represent a large portion of the BPO business, but they are not all that is on offer. Data processing, back-office operations, finance, and accounting processes are some of the other services a BPO company offers. 


The BPO industry is one of the biggest and most profitable industries globally. While there are many misconceptions about what happens behind the scenes of a BPO company, it is important to know the truth behind these misconceptions. 

With over 25 years of experience, First Credit Services, a BPO company specializing in accounts receivables management and customer service outsourcing, has been building effective outsourcing programs for multiple businesses across the globe. To our clients, we will continue to be the vendor of choice and a leader who delivers a world-class service in a professional, compliant manner, embracing change and producing results that exceed expectations.

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