We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are the Different Types of BPO Tools?

By Osmand Vitez
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

BPO tools are not so much physical items as they are services offered by a third party. Companies can outsource certain business processes to a third party, allowing this business to complete the activity for a specific fee. First, BPO tools may be either vertical or horizontal. Vertical tools take an activity from start to finish; horizontal tools complete correlated activities from two different activities. Commonly outsourced activities may be recruitment, sales, procurement, or accounting.

Each activity in a business typically has numerous tasks lined up in a specific order. Vertical BPO tools handle each of these single tasks in order to completely fulfill a company’s activity. For example, the procurement activity may have tasks such as supplier identification and selection, resource reviews, order placement and receipt of goods, and payment. The outsource company completes all these tasks as part of the vertical outsource process. Other activities have steps that fall in this manner, albeit the tasks relate specifically to the activity.

Horizontal BPO tools allow an outsource company to work across multiple activities when completing tasks. Accounting is a common activity that typically falls under the horizontal BPO process. For example, the sales department is often responsible for collecting payments from customers. The procurement department requests payment for suppliers who ship goods to the company. When the outsource business handles both of these tasks as part of the accounting activity, that is horizontal BPO.

Outside of each of these types of BPO tools, data entry or customer service is the most common outsourced activity. Data entry activities are typically common tasks that require the use of unskilled workers. Companies can outsource these activities in order to save time, capital, and effort on building payroll and maintaining facilities for employees to work. Call center services are a similar task outsourced for the same reasons. Without the technology, facilities, or ability to handle large volumes of customer orders or inquiries, BPO tools are the way to go when handling this activity.

When a company looks for outsource companies, BPO tools offer a variety of options. For example, a business can select an outsource partner that is local or international. Outsource companies may offer multiple services, such as call service, fulfillment, and mailer advertisements. Businesses can choose to bundle services with one outsource company or look to separate the activities. It typically takes some time to research the available tools when outsourcing activities.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Related Articles

Discussion Comments

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.