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Starting a Small BPO Company

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So what is a BPO (Business Process Outsourcing) company? As BPO is the process of outsourcing business process activities, a BPO company is one that handles business process activities for another company. Many BPO companies are concerned with a single field, like outsourced accounting or manufacturing for example, though others are broader in scope and undertake a wide array of business processes for their clients in a B2B relationship.


Processes – The processes that BPO companies undertake for their clients are considered ‘non-core to business strategy’, by which is meant they aren’t considered the company’s primary functions but rather secondary functions that keep their operations running. In addition to accounting, which is a prominent example of a BPO activity, other prominent activities include call centre and customer service activities, data centre operations, as well as financial and administration processes.

Starting your own BPO company – For a small BPO company just establishing itself, it’s considered wise to specialise in something, don’t get carried away just yet by providing a wide array of services – find something that you’re able to carry out professionally and affordably – you’ll have to implement an outstanding degree of service that makes client companies feel comfortable about outsourcing to your company before expanding the services you provide.

Nearshore or offshore – BPO companies operate as either a nearshore or an offshore company. Nearshore companies are those that provide BPO services to companies in the same country, whilst offshore companies provide BPO services to companies from overseas. It’s advisable that as a start-up you focus your attention on one or the other – when your company expands you can decide how to expand to cover both nearshore and offshore services.

The setup – The way your BPO company is set up depends largely on whether you’re nearshore or offshore, so ensure you know exactly where you’re going to be operating and who your prospective clients will be. Whether you’re establishing a nearshore or offshore company you’ll still have to obtain financing and you’ll also need to create a business plan, one that allows sufficient time to get established. But you’ll not only need the capital required to operate and a business plan that enables you to operate comfortably – but also a way of keeping your overheads low for the foreseeable future.

Office space – You’ll also need an office to work from, or if you’re working from home then look at arranging a virtual office space, a great option for start-ups that need to keep their overheads low. If you’re sourcing office space, the most advantageous form of office rental for start-ups, and indeed all companies, is serviced office space which is available in business centres around the world and offers a wealth of advantages with not only regard to low overheads, but also flexible contracts that enable your BPO company to contract or expand when required, and even relocate to another business centre without penalty.

Low overheads – Keeping your company’s overheads as low as possible until you’ve sufficiently expanded your client base is imperative whilst establishing your BPO company, and in addition to working from a serviced office with affordable rates and a flexible contract, there are further advantages to working from a serviced office in a business centre. Firstly you can conduct business meetings in dedicated meeting venues to woo your clients, secondly your company can access admin and support when required to eliminate your dependence on fulltime admin and reception staff, and thirdly, you’ll find that your company is better able to convey an impression that predisposes your clients, both current and future, to entrusting your company with their BPO activities.

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