What is BPO Business?
BPO stands for Business Process Outsourcing, a business practice in which an organization hires an outside service provider to complete a critical business task. Payroll, accounting, and customer service are examples of BPO processes because they are performed similarly from company to company.
Business executives often determine that having their own staff perform these commodity processes adds little value because they do not typically distinguish one organization from another. Indeed, businesses believe that outsourcing these processes to a company that specializes in them will yield better results.
Businesses use business process outsourcing (BPO) for two types of tasks: back-office functions and front-office functions.
Back-office functions are internal business functions, such as accounting, information technology (IT) services, human resources (HR), quality assurance, and payment processing. Front-office functions are customer-facing tasks, such as customer service, marketing, and sales.
A BPO contract may involve outsourcing an entire functional area, such as the HR department, to a single vendor. This service can also be called an EOR/PEO service (Employer of Record/Professional Employer Organization). Organizations may also outsource specific processes within a functional area. For example, a company may outsource its customer service tasks to a BPO company that runs a call center. The BPO company will then provide customer care to the company’s clients on its behalf.
There are many different forms of BPO businesses, including tax, accounting, payroll service companies, EOR/PEO companies, call centers, and outsourcing IT companies.
Why Start a BPO Business in Vietnam?
Vietnam is becoming a rising star in the BPO industry for a number of reasons, including:
- Abundant and skilled workforce: Vietnam has a young and educated workforce with strong language skills. This makes it an ideal destination for BPO companies that need to provide customer service or technical support in multiple languages.
- Low labor costs: Vietnam has some of the lowest labor costs in Southeast Asia. This can help BPO companies to save money on their operating costs.
- Favorable business environment: The government of Vietnam has implemented a number of policies to attract BPO businesses. These policies include tax breaks and incentives.
- Strategic location: Vietnam is located in Southeast Asia, a region with a rapidly growing economy. This makes it an ideal location for BPO companies that want to serve customers in this region.
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 for the specific type of service it provides, such as tax/accounting, staffing, human resources, or call center services. Most of these business lines are conditional.
For example, to incorporate an offshore company in Vietnam to open a tax/accounting service company, the founders must obtain appropriate licenses recognized by the Government of Vietnam.
If you want to incorporate an offshore company in Vietnam 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.
Starting a BPO Business in Vietnam Without Opening a Company
Opening a company in Vietnam for BPO business can be complicated. A simpler option is to use an EOR/PEO (Employer of Record/Professional Employer Organization) company. An EOR/PEO is a local company that handles the HR management of your BPO business. This means that you can recruit and manage your own team in Vietnam, while the EOR/PEO company takes care of tasks such as payroll, attendance, and workplace arrangements.
Using an EOR/PEO company is a good alternative to incorporating an offshore company in Vietnam. This is because it can be a faster and more cost-effective way to start a BPO business in Vietnam.
Iris International’s Solution for Remote BPO Business
You recruit your people, we hire them on your behalf
Iris International is a PEO (Professional Employer Organization) company in Vietnam that can help your BPO business hire employees without the need to incorporate an offshore company in Vietnam. We will manage all of the human resources, benefits, payroll, and tax needs for your employees so that your headquarters team can focus on your business goals.
Iris International: The Best PEO Service in Vietnam
Iris International is a leading PEO (Professional Employer Organization) company in Vietnam that offers a wide range of services to help businesses hire and manage employees in Vietnam. Whether you are a multinational company or a local Vietnamese business, Iris International can help you comply with Vietnamese labor laws and regulations, and ensure that your employees are treated fairly and equitably.
Iris International offers a number of advantages over other PEO companies, including:
- Speed and efficiency: Iris International can help you hire employees quickly and easily, without the need to go through the complex and time-consuming process of incorporating a company in Vietnam.
- Cost-effectiveness: Iris International’s services are more cost effective than other PEO companies, as you will not need to pay for office space, staff, or other overhead costs.
- Peace of mind: Iris International will take care of all of the HR-related tasks for you, so you can focus on your core business activities.
Get A Quote Now
If you are looking for a reliable and efficient PEO partner in Vietnam, Iris International is the perfect choice for you. We have a proven track record of helping businesses of all sizes succeed in Vietnam, and we are committed to providing you with the best possible service. Fill out the form below, and our consultant will contact you as soon as possible with the best quotes.
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