BPO (Business process outsourcing) is quite a common name nowadays. It is a third-party service provider that a company hires to perform its non-primary business activities and functions. In this technology-driven world, things are just a finger click away and you might have already read lots of blogs related to Business Process Outsourcing but we are here to discuss and better understand the concept of Business Process Outsourcing.
Implementing the practice of BPO will benefit companies in many ways, like reducing the costs and bringing more flexibility in the workspace. These third-party service providers are set up to provide companies with dedicated tasks more efficiently, productively, and at a much cheaper cost.
There are different types of business process outsourcing, a few of which are payroll outsourcing, employee records analysis, and business intelligence outsourcing. All these can be broadly classified into two main categories:-
- Front office services
- Back office services
Front office services – These in general cover more like customer interaction services, and sales or customer queries through phone or digital media.
Back office services – These in general accounts for things like research and accounting and various types of IT support services. It is also referred to as the human resource type of BPO.
There is a subset of BPO, which provides separate services and is more specialized in knowledge i.e KPO (Knowledge Processing Outsourcing) even though both are related to the activities of an organization, but both are different. KPO also referred to as business intelligence consulting majorly involves outsourcing the work of mining business data for insights, or looking at dashboards to support top-level management decisions.
The BPO industry is divided into 3 broad categories (majorly location-based):-
- Offshore service provider – The service provider is located outside of the company’s own country. For example, an Australian company may use an offshore BPO vendor in the Netherlands.
- Onshore service provider – The service provider is operating within the same county as the contractor. For example, a company in Gurgaon, India, could use an onshore outsourcing service provider located in Gurgaon, Bangalore, Gujrat, or any state of India.
- Near-shore – The service provider is located in countries that neighbor the contracting company’s country. For example, a company in India may have BPO in Bangladesh.
Let’s dig in some of the benefits of BPO (Business process outsourcing) –
Business Process Outsourcing companies reduce the costs for in-house labor, especially for training and staffing, and to hire local employees as the workforce. Physically located outsourcing companies established in a developing country come with an advantage of lower-cost labor markets. Business gets an upper hand using variable-cost models, like pay-for-service plans, instead of fixed-cost models that are required when employing local employees.
Since there are so many variables in play, it will be very difficult to provide an exact figure for the cost that holds true for all the companies. If your primary concern is BPO, the best way to find out how much you stand to save will be to connect with a BPO and make custom plans.
Focus on Key Functions:-
BPO helps companies to pay attention towards the core process, instead of spending time on other company functions like payroll performance of sales or accountant teams. A company can focus its energy and strength towards the overall growth and maximization of its organization. These actions will help promote the company’s competitive strength and will enhance its interactions with the value chain. Sequentially, the company will be able to enjoy high-profit margins and an improved Customer Satisfaction Score (CSAT).
Strong Grip on Global Market –
Business Process Outsourcing can provide your company a very strong grip in the international market, with very basic investments. Customers from all around the globe with different languages, cultures, and tastes will be able to reach your company 24*7, it will help your business to catapult to international markets at once.
A company can outsource just about any business function –
Invest some time making sure you understand and can convey what task you want to outsource and then you can outsource just about any business function, It is a simple way to reduce your business admin. For example, if you’re outsourcing bookkeeping needs, you might need to set aside time to get your accounts in order, plus take a little extra time to walk your accountant or bookkeeper through them for ease of understanding
Quality and Efficiency is Improved –
The advancement of technology and modern tools will directly improve the quality and efficiency of any organization. BPO firms are making huge investments in technology, types of equipment, tool, software, trained employees any many more to provide companies with a high level of process know-how. BPO’s will provide you with services with added quality and efficiency, thereby assisting you to manage your customers and appreciate the long-term relationships with your customers.
BPO helps business organizations to react faster to dynamic markets by adapting their processes as the market changes. For Eg. If you don’t invest in in-house servers, then you don’t have to worry about outdated technology. An outsourcing company that invests in specialized technologies and processes can bring cutting-edge breakthroughs.
In this technology-driven and extremely competitive world, it is very difficult for companies to maintain a profit. Our BPO services are the answer to this dilemma. We provide an ideal solution for companies who are willing towards improving the levels of their service, the efficiency of their processes, and reducing the costs, etc.
There are ample amount of benefits that we are getting from BPO. Quality improvement is one of the most rated benefits because when companies have sufficient time to concentrate on their core activities and outsource the ones that do not pose a threat to them, customers will be more satisfied with the product, and manufactured products will meet the desired and accurate specifications.
The BPO industry is a huge multifaceted industry that has a worldwide presence. And perhaps the most fascinating aspect of this industry is that it impacts the productivity and operations of almost all the other industries it deals with it doesn’t matter if the industry is dealing with health care, logistics, or an IT company. There are lots of elements to the BPO industry that cannot be summarized here but I believe the above-mentioned information is adequate to prompt a sense of understanding among our readers.