Business Process Outsourcing: An Important Development Lever

BPO, or Business Process Outsourcing, is a very attractive business management solution. Indeed, although this concept has existed for several years, many companies see it as an important development lever for 2019. But why such a craze for the BPO? To answer the question, discover through this article the missions of a business process outsourcing and the benefits it offers for companies.


What are the missions of a BPO?

Before talking about the missions of a BPO, it is important to understand what it really consists of. Business Process Outsourcing, which translates into the outsourcing of business processes, refers to the outsourcing of a specific business task to a service provider external to the company. Outsourcing takes charge of various missions that are useful and vital to a company, but which do not constitute its core business.

In general, companies choose to outsource time-consuming tasks, such as, for example:

  1. Outsourcing Billing.

While outsourcing is not a new concept, it might be a tricky decision to outsource billing. This is because billing and coding go hand-in-hand, and unless your service provider is expert at identifying the correct codes, it can result in the bills coming out awry, thereby resulting in large-scale losses. On the other hand, when done correctly, outsourcing can be a pain-free process, giving you an ample amount of time to concentrate on your core business strategies.


  1. Outsourcing Payroll.

Isn’t it more expensive to pay someone else to do your payroll tasks?

It is certainly NOT more expensive to hire out your payroll processing. When you consider the cost of an employee’s wages and add in benefits that can really add up quickly. If you are the owner of a very small company and you are trying to do payroll yourself, the cost of your time is even greater.


  1. Outsourcing IT.

Security. Support. Expertise. Strategy. Information Technology (IT) is a major support function for any business. But all too often small to medium-sized businesses overlook IT as a critical business component, mainly because of the cost to develop and maintain an IT department.

There are few ways to ensure the good positioning of a company without viable IT technical support, which is one reason why any business leader should consider outsourcing IT services.

A professional IT support provider helps manage the network, users, services, and devices that are integral to a company’s operations. It helps guarantee that the organization’s network is current and that its technology provides seamless operations across all departments, hierarchies, and roles within the company.

While every IT support provider offers different services, common tasks include, for example:

  • Network monitoring, management, and security
  • Data backup and recovery
  • Authentication
  • Data storehouse, warehouse, and management
  • Process execution and enforcement


  1. Outsourcing Call Management.

Companies need to stay focused on core competencies, therefore large organizations often outsource call center functions to specialized service providers.

The alternative is to handle multiple customer communication channels–calls, emails, web chats, and text messages–in-house. But establishing a multichannel contact center is an expensive proposition. It requires a major investment in facilities, equipment, and technology–not to mention the cost, time and energy needed for staff training and ongoing operations.

However, the growing trend of IT outsourcing can bridge the gap.  In fact, analysts expect global Information Technology (IT) outsourcing to have a compound annual growth rate of close to six percent through 2019. Some studies show as much as 60 percent of the IT function being outsourced, with spending on outsourcing accounting for 10.2 percent of the average IT budgets.

Companies that invest in outsourced IT services achieve significant benefits that help them operate more efficiently and effectively without having to invest in a full-fledged IT department.


  1. Outsourcing Data Entry.

Outsourcing your data entry is a strategy that is growing in popularity for businesses today, as more and more entrepreneurs are recognizing the benefits of outsourcing their non-core tasks, of which data entry usually falls under.


  1. Outsourcing Recruitment.

The global economy has changed, making recruiting and hiring the right candidates a lot more difficult. New economic conditions include global competition, lightning fast-changing business conditions, high unemployment, skills shortages, and a war for talent. Finding and hiring the right people in this kind of recruiting environment requires keeping up with new recruiting technology and social media, developing relationships with successful candidates, and asking the right questions. Busy hiring managers and employers achieve all that when they outsource recruiting.


What are the benefits of using BPO for a business?

Since its inception, the BPO has constantly evolved to meet the needs of businesses that are becoming more demanding. In 2018, the sector has largely expanded and intervenes in many areas of activity, including accounting, tele-secretary, customer services… Among the most notable benefits of using BPO include:


  1. Cost reduction.

This is undoubtedly one of the first attractions of the BPO. Indeed, the fact of entrusting certain functions of the company to these specialized service providers makes it possible to reduce the expenses related to the execution of the tasks. One must know that mastering the specific skills to areas, such as accounting, computer science, etc. is often expensive to develop internally.

In addition, almost all outsourcing companies have at their disposal a competent and affordable workforce, making their rates cheaper for quality service. In addition, the company will not have to worry about the wages of the operators or the purchase and maintenance of equipment since they are included in the tariff of the provider.


  1. The gain of professional expertise.

Another advantage of outsourcing is that it allows the company to benefit from the expertise of professionals. Indeed, these types of providers have a team of qualified and experienced professionals in the different missions they offer. In other words, whether it is for payroll, accounting, call management, recruitment or other, it provides its clients with efficient agents and high levels to ensure the quality of each mission.


  1. Focus on core activities.

Workload increases with additional non-core functions and the quality of your core activities suffers as your business grows. Outsourcing in such scenario to a third party plays an important role by allowing your key resources to focus on primary business tasks.

Also, after you allocate tasks to your outsourcing partner, they share the workload of your employees. This allows you to develop your internal task force and use them more efficiently.


  1. Improve service and delight the customer.

Your outsourcing partner, with their skilled expertise, will produce quality deliverables faster, increasing your turn around time to the customer. With on-time deliveries and high-quality services, your customers will be delighted! Outsourcing can help you benefit from increased customer satisfaction and thus creating a stream of loyal customers.

Outsourcing shows an increase in your productivity, customer loyalty, level of quality, business value, profits, and much more.


  1. Run your business 24/7.

Offshore outsourcing gives you the added advantage of making full use of your 24-hour day. Your outsourcing partner can take over and continue your work even after your employees go home. They can complete critical tasks and send it back for your review the next day.


  1. Give your business a competitive edge.

The ultimate benefit of outsourcing is that it helps your organization gain a competitive edge in the market. Through strategic outsourcing to an outsourcing partner, you are not only providing your customers with best-of-breed services but increasing your productivity while managing your in-house resources intelligently. Outsourcing can help you surpass competitors who have not yet realized the benefits of outsourcing.



Outsourcing the services traditionally performed by a company’s own staff and resources provides multiple benefits. It reduces costs, frees up time to the business and improves efficiency on project execution. This practice can be very beneficial for long-term, short-term or specialized projects.

The outlook for the global outsourcing industry is optimistic growth. According to different studies, outsourcing will continue to expand at rates ranging between 12% and 26% in the next years.

Growing competitiveness from new outsourcing destinations coupled with the pressure on businesses to run cost efficiently will be the driving forces behind the accelerated growth in the BPO industry.




2 Responses to “Business Process Outsourcing: An Important Development Lever”

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