What Is BPO?
BPO (Business Process Outsourcing) is a business process in which a company employs an outside service provider to fulfill an essential business activity.
Because these commodity activities often do not distinguish one firm from another, enterprise executives frequently conclude that having their own people conduct them adds little value. Businesses do believe that outsourcing these operations to a company that specializes in these processes will produce better results. Businesses use business process outsourcing for two types of tasks: back-office functions and front-office functions.
Accounting, information technology (IT) services, human resources (HR), quality assurance, and payment processing are examples of back-office functions, also known as internal business functions. Customer service, marketing, and sales are examples of front-office functions. A tax, accounting, payroll service company, EOR/PEO company, Call Center, outsourcing IT company are all different forms of a BPO business.
Why Start a BPO Business In Vietnam
The most important reason why Vietnam is becoming a rising star in the BPO industry is its human resource. Vietnam’s labor force is at its peak. With a young population that is mostly in the labor age, Vietnam provides a large human resource at a very competitive cost when compared to neighboring countries.
Opening a Company To Do BPO Business In Vietnam
In Vietnam, there is no such thing as a BPO business license; instead, a company must apply for a license on the specific type of service it provides, such as tax/accounting, staffing, and human resource, or call center service, and so on. The majority of these business lines are conditional.
- For example, to open a tax/accounting service company, the founders must obtain appropriate licenses recognized by the Government of Vietnam.
- If you want to start a human resource outsourcing company, you must first obtain separate approval from the Ministry of Labor and have a USD 23,000 savings account (unaccessible capital).
- Similarly, call center services are not covered by Vietnam’s WTO commitment and thus do not guarantee registration success.
Start a BPO Business In Vietnam Without Opening a Company
Because opening a company for BPO business in Vietnam is quite complicated; it would be preferable if one could still start a BPO business without registering an entity. This is possible if using another local BPO company as your outsourcing partner, to be specifically an EOR/PEO company.
EOR (Employer of Record) or PEO (Professional Employment Organization) is a form of BPO where the HR management part is outsourced to a local company. In brief, a BPO business owner can recruit and manage his own team in Vietnam to provide services to his clients overseas and hire a local EOR/PEO company in Vietnam to process the Admin/HR part to retain the team. The local EOR/PEO company will process monthly payroll, check attendance, arrange workplace/location and other office/work supplies.
Using EOR/PEO service is a perfect alternative to registering a company just for hiring. When it comes to hiring employees in Vietnam, establishing a subsidiary or branch office is not always the best option because it can be a time-consuming and costly process. Hiring through a PEO or EOR is a faster and often more effective option – especially when launching a new business in a foreign country (Vietnam).
Metasource’s Solution For Remote BPO Business
Metasource Asia assists your BPO business in hiring employees without the need to establish a legal entity. Our PEO service manages all human resources, benefits, payroll, and tax needs for your employees, while your headquarters teams only need to focus on your business goals.