Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca-Cola that outsourced large segments of its supply chain.
BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact centre services.
Here’s the Deal with Contract to Hire Positions
If you’ve been in the job market lately or have had a recruiter reach out to you, it’s likely that you’ve heard the term contract to hire recently. What is a contract to hire position? What does it mean for you as a job candidate and how should you approach a scenario that involves contract to hire roles.
But first, who am I and why should I even be discussing contract to hire positions with you. Well, my name is Rob Paone and I’m a former technical recruiter. I’ve placed countless professionals in contract to hire scenarios in my past career, before moving into the software sales world.
The fantastic thing about being a former recruiter is that I’m not here to feed your BS about “how great contract to hire positions are!” or how they give job candidates all the flexibility in the world.
You stay on an extended contract
Let’s say you signed on for a 6 month contract-to-hire and the 6th month comes around. You’ve been expecting to convert to a permanent employee, but your boss let’s you know that’s not going to happen.
It’s usually because you’re either very average at your position and your employer doesn’t need you in a full-time role, or because the company is going through internal changes and doesn’t have the money to allocate to another salary.
This isn’t the ideal situation because you don’t receive the benefits of a permanent salary position, but if you’re still working as a contractor, you’re still making money and there’s always a chance you’ll still go full-time.
This isn’t necessarily a positive outcome, but it could be worse as we’ll find out below.