Looking to give your business a boost? See how you can boost success with business process outsourcing (BPO). This can be the best solution for companies to streamline their operations. Outsourcing one or more services your company provides allows you to save money and improve the services you provide. Many companies—from small startups to large multinationals—can benefit from BPO providers. Almost any service can be outsourced, from call centers to payroll processing and IT services.
When you think about outsourcing business processes, it’s easy to only think of hiring offshore third-party vendors like India and the Philippines. However, many BPO companies are located near-shore which means they are located only a few hours from the U.S. with a much more Americanized culture with little to no accents. Countries like the Dominican Republic have a huge population of employees that grew up ine the states, predominantly New York and Massachusetts. So, think less “offshore outsourcing” and more of “nearshore outsourcing.”
How can using a business process outsourcing vendor benefit your company? Read on to find out more.
What is Business Process Outsourcing?
In short, BPO is when a company will use the services of a third-party vendor to carry out some of its business operations. The outsourcing could be “front-office” services such as a call center company or customer service chat support. Or, it could be “back-office” ones such as accounting or workforce management solutions.
There are three main types of business process outsourcing:
- Onshore outsourcing—This is where a company uses third-party service providers located in the same country. So, a business in Ohio could use an outsourcing provider in Minnesota.
- Nearshore outsourcing—Services are outsourced to vendors in neighboring countries. In the US, this could be Canada, Mexico, or South America.
- Offshore outsourcing—To reduce costs even more, some support services such as call centers can be outsourced to countries such as India, Pakistan, and the Philippines.
There is tremendous growth in the BPO industry. A 2020 study estimated that the industry would be worth $405.6 billion by 2027. The study found that in 2019, providing customer services—call centers and chat support—has seen one of the most significant growths. Using BPO companies is now an integral part of most successful business operations.
Additionally, the study highlighted the primary reason why BPO outsourcing benefits large and small companies. The driving factor in outsourcing processes is cost saving. Hiring third-party vendors can reduce operational costs and maximize the use of resources.
How BPO Companies Can Boost Your Business Success
What are the main ways that using a business process outsourcing provider can boost your success? Here are five reasons why you should think about using a business outsourcing models.
1. Cost savings
The main reason to choose a highly qualified BPO company is to save your company money. Outsourcing services can be more cost-effective than employing and training staff to do the same job. Using BPO also means less floor space to pay for, thus reducing your operational costs even further.
Another way that BPO vendors can save money is by providing the latest infrastructure. Technology is continually changing, and it can be costly to keep up. The best BPO companies continually invest in the newest technology to provide the best services to their clients.
2. Improved customer satisfaction
Many small and large businesses that outsource some processes find that their customer satisfaction improves. For example, a call center outsourcing company can provide customer service 24/7—something that many small to medium businesses can’t afford to do. Other processes, such as outsourcing billing also results in fewer mistakes and more streamlined operation.
3. Higher flexibility
By outsourcing some nonessential services, you can focus on your core business functions. One of the advantages of BPO is that it offers scalability. For example, you don’t have to invest in new tech or staff when your business expands. Also, shifts in market trends may mean that you need to be flexible in your working methods.
For example, in 2020, when the coronavirus hit the US shores, businesses that use BPO solutions were able to adjust quickly. Many already had digital solutions in place to allow their staff to work from home. Some were able to increase their customer service chat support to cope with increased demand for information.
4. Increased employee performance
Another way that your business can benefit from BPO is by better staff productivity. Companies that use outdated workforce management solutions have increased costs. These costs can be due to expensive overtime, employee absenteeism, or poor scheduling. Outsourcing many HR duties can help to improve the performance of employees. It also allows management to focus on the main goals of the business.
5. Better performance
Overall, businesses that use BPO solutions tend to be more competitive than their rivals. Usually, external service providers can perform better when it comes to IT jobs, marketing, customer service, or web development. Using third-party vendors allows companies to focus on providing the services that distinguish them in their industry.
Business Process Outsourcing: A Takeaway
BPO solutions is a crucial way for your business to streamline services, reduce costs, and improve customer service. Outsourcing many business processes can help your business stay relevant and remain competitive in your industry.