Whether you are seeking contracts to help build your brand or search to expand and explore opportunities in other markets, business process outsourcing is the way to go. Here is what you need to know about it.
What is Business Process Outsourcing?
Business process outsourcing (BPO) refers to a service in which an organization takes over the operations of another company. It is an umbrella term covering varied arrangements, ranging from very tightly controlled services provided by fully-owned foreign subsidiaries to agreements where the client organization retains legal ownership of all business processes involved. Still, the service provider performs actual control and execution.
How Does BPO Work?
BPO is one of the most exciting technologies available to business owners and remote employees. Business process outsourcing services are commonly used to complete many different company tasks, including marketing, customer service, accounting, human resources, and much more. Many outsourcers like to provide a variety of services.
Depending on your business type, BPO could be a helpful option for outsourcing non-core business functions or maintaining consistency in day-to-day operations. BPO can provide quality IT services at a lower cost than hiring internal staff when executed correctly.
What are BPO Benefits?
Flexibility
BPO offers many advantages, but flexibility is one of the key advantages. When you outsource a certain part of your business, you open up a lot of free time and resources for other parts of your business. You will have more time to focus on things you should be focusing on and less time trying to keep up with the tasks of your business.
Improved Performance
Improving your business performance and productivity isn’t as hard as you think. You just have to understand the proper strategies to achieve that goal. The business process outsourcing strategy has been proven to greatly benefit many more companies. This can lead to a much better understanding of achieving better performances, higher levels of productivity, and reduced costs.
Boosts Productivity
BPO is more than just outsourcing labor. BPO comprises many different services in its ideal form, depending on the nature and scope of a business’s needs. By using the services and employees from other companies, in essence, you’re leveraging their strengths to achieve your objectives. Some companies might use some of these services on a regular compilation, while others might use certain ones only once — depending on their needs at the time.
Types of Business Process Outsourcing
Offshore Outsourcing
Offshore outsourcing refers to using foreign workers employed by a serving company over water to carry out business processes.
Onshore Outsourcing
Onshore outsourcing, also referred to as nearshore or domestic outsourcing, transfers certain operations and processes to another company or entity within a relatively short distance.
Nearshore Outsourcing
Nearshore outsourcing is a form of BPO where the work is performed by a contractor located in close physical proximity to the client.
Factors to Consider when Choosing a Business Process Outsourcing Service Provider
There are a number of factors to consider when choosing an outsourcing company. Here are some of the most important ones:
Compare Services and Pricing
One of the most significant benefits of outsourcing is cost savings. When you outsource, you don’t have to hire internal employees for your tasks, so you save on recruitment costs, training, and equipment. You also don’t have to provide benefits for these employees, which can be a high cost for your business. However, it’s important that you compare services and prices from different providers before jumping in with one company over another. If you’re only looking at pricing, you may find yourself with a provider that doesn’t meet your needs or has hidden fees that end up costing more than hiring someone internally would.
Consider Reputation
It’s essential that you take the time to look into a provider’s reputation before signing on with them. Even though many reputable BPO service providers are out there, there are also plenty of disreputable ones. Check reviews online, ask other businesses that use their services if they’re happy with them, and look into any complaints filed against them. The Better Business Bureau is a great resource for this information.
Communication
The outsourcing firm should always be available for communication at any time of the day. This is especially important because clients may have to get in touch with their outsourced team at any time. It is important that you choose a provider that you can easily reach by phone, email, or Skype whenever needed. The way the provider communicates with its clients can tell a lot about its professionalism and quality of service.
Client Requirements and Objectives
Buyers need to determine their requirements and objectives before selecting a BPO provider. Buyers need to identify which functions they want to outsource, how they want those functions performed, when they want them performed, where they want them performed, and who will perform them. Buyers need to determine if the BPO provider can perform the functions to meet the buyer’s standards for quality. Having precise requirements in place will make it easier for buyers to choose a BPO provider that best suits their needs.
Security and Regulatory Concerns
Business process outsourcing means entrusting the provider with valuable intellectual property and confidential data. Whether this information is stored on-site or in the cloud, there should be mechanisms in place to ensure that unauthorized parties do not have access.
Security and regulatory concerns are significant when outsourcing to a firm located in another country. While many foreign countries have similar data protection laws, there are some key differences in the contracts.
Regulations also vary by industry. For example, businesses operating in healthcare, finance, and banking must comply with specific regulations that govern collecting, using, storing, and sharing customer information. Examining any security and regulatory requirements or restrictions in BPO contracts is essential before outsourcing a process to a third party.
Conclusion
Business process outsourcing is a cost-effective and efficient solution for many business needs. Companies big and small can leverage this sector to reduce overhead costs without sacrificing quality or service. The information here should give you a good idea of what to expect from outsourcing your company’s call center operations. That being said, outsourcing remains one of the more effective ways to save time and money on business operations. And in today’s world, every dollar counts just a little bit more.