3 Myths And 4 Benefits About Business Process Outsourcing

Business process outsourcingSource: pexels.com

Initially used by manufacturing companies, BPO services are now used by companies to deliver tasks required for their business, within a reduced budget and timeframe.

Business Process Outsourcing (BPO) is the method of subcontracting business activities and functions to third-party providers. Services may include payroll, HR, accounting and customer/call centre relations.

Front office BPO services refer to tasks including tech-support, sales, and marketing.

Companies achieve flexibility through outsourcing these services to other companies, resulting in advantages over competing businesses in their industry. Offering businesses access to technologies they would not otherwise have used, BPO companies are consistently updating their technologies to keep up with changing climates.

Instead of purchasing a start-up company, investing money and trialing new staff to operate services, businesses can work with an existing company that specialises in achieving these business goals. Back and front office functions can be completed, including human resources, IT, quality assurance and payment processing. Outsourcing companies can also complete front office services such as customer relation services, marketing,  and sales.

Introducing your company to a global market or new country can be difficult, especially if a language barrier persists. Instead, using BPO providers to create contacts in a new country can be achieved through outsourcing, allowing global staff members into your company, and your company into their country.

Types of Outsourcing:

Offshore Outsourcing – BPO becomes offshore outsourcing if services are sent to another country where there is political stability, low labour costs, and/or savings on tax.

Near Shore Outsourcing – refers to services that are outsourced to a neighbouring country.

Onshore Outsourcing – refers to services that have been outsourced within a business’s own country.

KPO – Knowledge process outsourcing refers to services outsourced to a company,  not just for its capacity to complete particular business functions but also provide expertise around it.

LPO – Specific to legal services and ranging from drafting legal documents and performing legal research to offering advice.

RPO – Refers to research and analysis functions, biotech companies, investment firms,  and marketing agencies are among the types of organisations that would engage in RPO for services.

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Benefits of BPO

Financial Gain – When using an outsourced service provider, a business’s tasks may be performed at a lower cost, allowing the onshore company to save money through the relationship and focus these funds somewhere else in the business.

Flexibility – Allowing organisations greater flexibility to adjust and complete their outsourced business tasks as onshore staff would, allowing your staff to improve their workload.

Competitive Advantage – Organisations have the opportunity to outsource processes that are not intrinsic to their core business tasks or missions. This allows organisations to focus more of its resources on the areas they require.

Better performance, higher quality – The core business of BPO providers is performing the specific tasks they are hired to complete. These businesses are able to focus on providing processes at higher levels with greater accuracy, efficiency,  and speed.

Having tasks completed in an efficient manner and avoiding unnecessary delays is guaranteed with the skillset and staff who require limited supervision and training.

Technological advances make it possible for artificial intelligence (AI) and robotic process automation (RPA) to handle the services outsourced to offshore providers at reduced costs, and higher speeds.

Benefits of BPO
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Common Myths of BPO

1.Lack of Control Over Services and Quality

Both new and existing managers may fear they will experience a lack of control as they outsource their services to an offshore or onshore provider.

This couldn’t be further from the truth as offshore services operate on whatever tasks you desire, whenever you desire.

2.Your Data is at Risk

Holding and transferring information between businesses is a secure process when working with an outsourcing service that has a strong and trustworthy reputation.

With new technology, companies are able to easily access, maintain and monitor data, removing any fears for your company.

3.Quality Discrepancies

A popular myth that persists with outsourcing relates to quality, and that it will not be similar to in-house standards.

Reputable outsourcing companies will hire workers with high standards and capabilities that will follow any outlines set by your company. Confirm the quality as you go with excellent and open communication.

Companies in need of BPO source-out their services and these locations are regularly overseas,

Common Myths of BPO
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Although there are many myths relating to the quality and practicality of outsourcing work, these myths are often based on antiquated models of these services. Leap into the 21st century with your business and experience outsourcing for an increased profit margin and speedy completion of work.

About the Author

He is a professional SEO specialist & a freelance writer with a lot of passion to write about technology, startups, travel, lifestyle & other niches. He owns many websites. He has contributed to many famous websites. He lives, breathes digital marketing, and helped many companies to grow their business. His main goal is to spread his knowledge that he grabbed in many years and ideas to all generations.

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