What is Business Process Outsourcing (BPO)?
If you are new to BPO, it is an innovative service helping to adapt within a highly competitive business climate. A third-party vendor and service supplier is contracted to carry out the business functions, front-office and back-office. Those functions can be IT, marketing, sales, HR, customer relations, or quality assurance services. All offering several benefits, BPO can be categorized into three different types based on the company’s location: onshore, nearshore, and offshore.
It might be intimidating to hand off standard business functions to an outside party, but it all starts to make sense when you dig deeper into the concept. Why not reframe your business model to include the most cost-effective operations? The benefits of outsourcing your business processes can get you the services you need while reducing costs, increasing productivity and flexibility, and using state-of-the-art technology.
A vital business function to focus on that BPO can support is your call center. Outsourcing your outbound and inbound call handling activities can help offload during your busy times. By taking on tasks that are often tedious and routine, BPO will free up existing resources to focus on the more intricate tasks. There are a few types of call center outsourcing: inbound, outbound, and two-way call center outsourcing. You can do some digging to see where your company could benefit the most from each of these outsource functions (for example, where the highest volume of calls are coming through). With an inbound call center outsourcing, they can provide information, handle complaints, or take bookings from incoming calls. An outbound outsource will specialize in making phone calls to existing or prospective customers. A Two-Way call center can combine the two and assist in handling both incoming and outgoing calls. Running an in-house call center can become costly. When you have to manage the setup costs, overheads, training costs, as well as salaries, you begin to see that outsourcing your call center can save you money, time, and effort. As we dig deeper into why BPO can help your business succeed even further, you will notice that the following benefits will help you expand at a reduced cost.
Benefits of business process outsourcing
Let’s start with the one that can be music to anyone’s ears – cost reduction. Acquiring additional labor from an external source can save you money? That’s right – think of this as an investment rather than an added cost. It’s a typical reaction to hire additional employees when you do not have the capacity to complete specific tasks within your current team. Think about all of the labor rates a business has to take on when hiring additional team members. And what about high attrition rates? The average turnover rate for an agent is between 30-45% (sharpencx). Outsourcing can help eliminate some of these costs and help with the staffing flexibility to help handle seasonal changes. The amount of time and dollars spent to get new employees up to speed with your business model, goals, and vision are valuable things that are not wasted. This doesn’t even factor in the additional equipment costs a company has to take on with each new agent hired. With the hiring and training process, new equipment purchases, and staffing support that goes along with it, you begin to notice the additional recurring costs a business could take. It’s time to start thinking of a better way to keep these processes more consistent and less costly, and that is where outsourcing comes into play.
Another essential benefit to consider is the technology used. It’s necessary to have the best technology resources in this industry, and BPO’s typically employ state-of-the-art technology while providing innovative solutions. Purchasing the latest software and other technologies can not only be expensive, but it can also come with some risks. A growing business does not always have the budget or resources to set aside to get top-notch technology, making it challenging to stay up to date. With BPO investing in state-of-the-art technology, it allows for standard business functions to grow and scale faster. This gives your company the ability to access continuous improvements and the relevant experience in your non-core activities.
Higher productivity rates will ultimately help achieve your business goals faster and more efficiently. Focusing on core tasks is crucial in today’s world where it can be easy to get sidetracked with ongoing projects, struggling to come up with a solution. Running a business involves a diverse amount of tasks – it involves more than just selling a product or service. When you think of all of a business’s secondary responsibilities, such as data entry or quality assurance, you may not realize how much time is being taken away from your core focus. Let your team focus on strategy and problem solving rather than managing the processes. With BPO, you can hand off some of that responsibility to a higher level of expertise, giving you more time to focus on your business’s core. This will increase the productivity of your entire team.
Why do businesses outsource?
With ongoing changes in the business world, BPO makes sense. As we look at the numerous advantages in the industry, it is only continuing to grow. Taking advantage of these processes can only help your business succeed and grow as well. With an increase in efficiency and productivity, expertise availability, flexibility, outstanding available resources, and reduction in operating costs, you’re on your way to continuous growth and success.
If you have any questions about business process outsourcing or would like to get started, don’t hesitate to reach out to Anexinet. Our experts are always ready to help.