Business process outsourcing (BPO) has moved well beyond traditional call centres and basic administrative work. Australian businesses can now outsource everything, from bookkeeping and customer support to IT, data processing and specialised knowledge work.
But deciding what to outsource first is often more difficult than deciding whether outsourcing is a good idea.
The best starting point is usually not the process that costs the most. It is a process that is repeatable, measurable, digitally deliverable and consuming valuable internal resources. By starting with the right function, businesses can test an outsourcing model, measure the results and expand with greater confidence.
What is BPO and how does it work?
BPO can involve a single process, several functions or a dedicated team supporting an entire operational area.
Common examples include:
- Bookkeeping and accounting support
- Accounts payable and receivable
- Customer service
- Data entry and processing
- Administration
- IT support
- Software development
- Recruitment administration
- Digital marketing support
- Research and reporting
The key distinction is that BPO focuses on defined business processes, rather than simply hiring someone to complete an isolated task.
For example, asking an external professional to enter invoices is task outsourcing. Having an external team manage a defined invoice-processing workflow is closer to business process outsourcing.
Which processes should you outsource first?
The best processes to outsource first are generally those that are structured, repeatable and easy to measure.
Consider these five areas:
1. Administrative processes
Administration is often one of the easiest places to begin.
Potentially outsourced activities include:
- Data entry
- Calendar and appointment management
- Document preparation
- Database updates
- Scheduling
- Reporting
- Email administration
These processes can take significant time away from Australian employees without necessarily requiring constant physical presence.
2. Bookkeeping and finance support
Growing businesses often find that finance administration increases faster than their internal capacity.
Suitable outsourced functions can include:
- Bookkeeping
- Bank reconciliations
- Invoice processing
- Accounts payable
- Accounts receivable
- Financial data entry
- Routine reporting support
For businesses considering this model, outsourcing bookkeeping can provide additional capacity while allowing internal decision-makers to retain oversight of financial matters.
3. Customer support
Customer service can become difficult to scale when enquiry volumes increase.
An outsourced team may handle:
- Email enquiries
- Phone support
- Live chat
- Support tickets
- Customer follow-ups
- Appointment confirmations
The process should be supported by clear scripts, escalation procedures and quality standards. This helps customers receive a consistent experience.
4. IT and technical support
Information technology processes can be strong attributes of BPO candidates where work can be performed remotely.
Depending on the business, this could include:
- Helpdesk support
- Technical troubleshooting
- Systems administration
- Software development
- Quality assurance
- Application maintenance
Businesses can use an outsourced team to supplement internal technical capabilities rather than attempting to manage every technology function themselves.
5. Research and data processing
Research and data work can consume considerable employee time.
An external team can assist with:
- Data collection
- Data processing
- Competitor research
- Database management
- Reporting
- Market research support
This allows internal professionals to spend more time interpreting information and making decisions.
How do you decide which process to outsource?
Before making a decision, score each potential process against these questions:
| Question | Good outsourcing candidate |
| Is the process repeatable? | Yes |
| Can the workflow be documented? | Yes |
| Can performance be measured? | Yes |
| Can the work be performed remotely? | Yes |
| Is the internal team spending too much time on it? | Yes |
| Does it require constant physical presence? | No |
| Does it involve highly sensitive strategic decisions? | Limited |
A process that receives mostly “yes” answers is worth investigating further.
The goal isn’t to outsource everything. It is to identify work that an external team can perform effectively while your internal employees focus on activities where their expertise creates the greatest value.
Should you outsource a task or an entire process?
This is an important distinction for businesses starting with BPO. Examine the following comparisons:
| Task Outsourcing | Business Process Outsourcing |
| Individual activities are delegated. | A defined workflow is managed. |
| Narrow responsibility. | Broader process ownership. |
| Usually easier to start. | Requires stronger processes and KPIs. |
| Focuses on completing tasks. | Focuses on achieving an outcome. |
| Less operational integration. | Greater team integration. |
For example, a business could outsource data entry as an individual task. Alternatively, it could outsource a broader administrative process involving data collection, validation, processing and reporting.
Starting with a clearly defined process can make it easier to establish accountability and measure performance.
What should you keep in-house?
Some functions require greater caution before outsourcing. Businesses should carefully consider retaining activities involving:
- Core strategic decisions
- Executive leadership
- Highly sensitive intellectual property
- Critical client relationships
- Certain compliance responsibilities
- Work requiring physical presence
This does not automatically mean every part of these functions must remain internal. Some supporting activities may still be suitable for BPO.
The important consideration is which parts of the process can be safely and effectively performed externally.
How can you start business process outsourcing successfully?
A structured transition can reduce disruption. Follow these steps:
1. Choose one process.
Start with a function that has clear boundaries and measurable outputs.
2. Document the current workflow.
Record the steps, systems, responsibilities and common exceptions.
3. Define KPIs.
Choose metrics that demonstrate whether the outsourced process is delivering the expected result. Examples include:
- Turnaround time
- Accuracy
- Processing volume
- Response time
- Error rate
- Customer satisfaction
- SLA compliance
4. Establish security controls.
Determine what information the external team needs and provide access according to their responsibilities.
5. Train the team.
Good onboarding should cover procedures, examples, systems training and communication expectations.
6. Review and improve.
Monitor results during the early stages and adjust the workflow when necessary. Once the process is stable, consider whether another function should be added.
Is BPO only about reducing costs?
No. Cost efficiency can matter, but it should not be the only measure of success.
A successful BPO arrangement can also help a business achieve the following:
- Access specialised skills
- Increase capacity
- Address staffing challenges
- Improve process consistency
- Unload internal employees for higher-value work
- Scale certain functions more efficiently
Australian businesses should therefore compare the total value of the outsourcing model, including recruitment, training, management time, technology and operational support.
For businesses exploring offshore teams, the Philippines is one potential source of skilled professionals across administrative, finance, customer service, technology and knowledge-based functions.
Frequently asked questions about BPO
What is BPO in simple terms?
BPO, or business process outsourcing, means using an external team or provider to perform defined business processes for your company.
What is the easiest business process to outsource?
Administrative work, data processing, bookkeeping support and customer service are often suitable starting points because they can be clearly defined and measured.
Is BPO suitable for small businesses?
Yes. Small businesses can outsource individual processes or build a small dedicated team rather than outsourcing an entire department.
How do I know if a process is ready for outsourcing?
A process is generally a stronger candidate when it is repeatable, documented, digitally deliverable, measurable and consuming significant internal resources.
Does outsourcing mean losing control of a process?
Not necessarily. Effective BPO arrangements use defined responsibilities, KPIs, reporting structures, security controls and regular communication to maintain visibility and accountability.
Start BPO with the right process
The best initial outsourcing decision is rarely about outsourcing the biggest or most expensive department. It is about finding the process where external support can create measurable value with manageable risk.
For many Australian businesses, that could mean starting with administration, finance support, customer service, IT or data processing. Once the process is documented, measured and successfully transitioned, the business can decide whether to expand its outsourcing strategy.
Flat Planet helps Australian businesses build dedicated offshore teams and access skilled professionals across a range of business functions. If you’re considering business process outsourcing and want to identify which processes could be suitable for your organisation, contact us, Flat Planet, to discuss a tailored BPO solution.
