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,
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
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,
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,
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.
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.
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,
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.