Understanding how business process outsourcing works
As the owner of a company, you might have been thinking about outsourcing services and whether that process is what your business needs. Business process outsourcing has a number of benefits for any business. But the one benefit that speaks volumes is that your business will be able to save money in the long run.
Cutting costs is always beneficial for any business, allowing you to use those funds to grow and expand your company as you have desired. If you are wondering whether business process outsourcing is right for your business, keep reading to understand how outsourcing and outsourcing companies work.
The main objective of business process outsourcing (BPO) is to take over some of your business operations and alleviate the workload, particularly non-core business functions. Think of it as a helping hand that allows your business to focus on other important business activities which will help you grow your business.
What is a BPO and what can it do for you?
A BPO vendor is a type of sub-contracting which allows a company to have a third party handle their work. That could include outsourcing your companies call centre or customer complaints, allowing the BPO to handle your businesses customer support.
Your business could outsource document collection, customer complaints line or data extraction. BPO’s are a great way to lower the stress and workload for your employees and yourself as an owner. Because you are allowing another company which is trained in those specific business functions to assist you.
Types of BPO’s
Business process outsourcing has two types of services. They have a back office and front office outsourcing. Back office outsourcing handles data management, including things like data entry, payment services, and document collection, which are core business functions. The front office outsourcing will handle things like your business call centre, customer complaints, and queries.
Business processing outsourcing also has three location categories it falls in. Those categories include onshore, offshore, and nearshore outsourcing:
- Offshore outsourcing means that the BPO is located outside your country
- Nearshore would be located in neighbouring countries
- onshore outsourcing would be vendors that are in the country which your business is in
Why would your business need a BPO?
BPO’s are a great addition to your company and is a cost-effective way of getting the job done. It saves a large amount of money because you won’t need to get additional office space as you would if it were to be in-house.
You won’t need to train or higher additional staff. BPO’s already have their own qualified staff who know exactly what they are doing. Your business is able to cut costs, without potentially harming your business by producing low quality work.
Outsourcing work also increases productivity. This is great as your employees will be able to focus all their energy on their work without being interrupted by ongoing calls. The outsourcing company’s staff is trained therefore they know what they doing and you won’t have to deal with any issues or backlogs. The BPO’s staff is also trained to deal with high call volume so your staff won’t need to deal with that.
You will also as a business owner have time to grow your business. Being a business owner can be stressful as you have to oversee everything. At least with outsourcing, you will have some of the work-load eased and you’ll able to focus on other business aspects. Maybe you needed to grow a specific department but have no time or no budget. When you outsource some of your work you can use the time you have an extra budget to focus on that department.
You also won’t need to worry about new technology and software. With a process outsourcing business that will be handling all your non-core functions, you won’t need to invest in software. For example, you won’t need to have the software for data collection, which cost money. Instead, business process outsourcing will handle it all. You won’t need to have the software of equipment to run a call centre because all of that will be done for your business.
Final thoughts
Rest assured that BPO is exactly what your business needs. Your business will still be producing quality work faster and still being able to save money. Outsourcing work is a great way of having an upper hand to your competitors. Because your business will be able to produce quality work at a shorter time. Plus, having your own call centre which will deal with your customer frustration is a great way for your business to impress them and retain their business.