Essential Guide to Business Process Outsourcing

1. Essential Guide to Business Process Outsourcing Nowadays, a successful business is commonly referred to as an efficient one and the difference all goes down to smart, innovative process, with suitable adept management to match. In addition, modern process management techniques also help businesses grow and achieve success, and one of these processes is BPO or Business Process Outsourcing. But what is BPO and how can it help your business grow from good to great? What are the things to consider before you start outsourcing some of your business’ activities? In this article, we’re going to tackle everything your need to know about BPO, its pros and cons, and why it is commonly recommended by many businesses around the globe. What is Business Process Outsourcing? BPO is the practice of contracting a specific work process or processes to an external service provider. An outsourcing service provider usually fills supplementary business functions, with services that could be either technical or nontechnical. These services may vary into different types which may include payroll, accounting, telemarketing, data recording, digital marketing, customer support, and many more. This being said, the BPO industry is commonly divided into two main types of services: back office and front office. In addition, the BPO industry is also divided into three categories, commonly based on the location of the outsourcing service provided. ● Offshore - Outsourcing service providers who are located outside of the company’s own country. One of the best examples is US companies offshoring their work process on Asian countries such as the Philippines. ● Nearshore - service providers are located in countries that neighbour the contracting company’s country. For example, a BPO in Mexico is considered as a nearshore service provider for clients residing in the United States. ● Onshore - BPO service providers operate within the same country as the contractor, although they may be located in a different city or state. Why do Businesses Choose BPO? Most businesses choose to have an outsourcing partner for many reasons. We’ve listed down some of the main reasons why most companies and businesses choose outsourcing. ● Cost Reduction - This is the primary reason why many businesses consider and choose BPO for their business. BPOs can leverage lower-cost labour markets in order to deliver higher cost savings to a business. A quality Outsourcing partner is able to provide non-core business processing services efficiently, which results in lower costs for a business. ● Focus more on the business’ core projects - Hiring a BPO service provider allows business owners to focus more on the core processes of their company. By handling over non-core business processes to your outsourcing services provider, owners can now focus more on working on the business’ core activities without delaying some of the business’ process, which can be very risky. ● Efficiency and Improved Productivity - Because business process outsourcing companies have chosen to make your non- core business processes their primary focus, they are able to invest in the technology, process-improvements, staff training and other resources necessary to achieve a much higher level of process expertise and success. Improved quality, efficiency and turnaround time results in better service for your customers and high levels of customer satisfaction. Using a BPO expert also allows your organization the ability to reassign employees previously processing non-core functions, to other areas of the business.

2. ● Access to modern process and technology - Choosing to work with a BPO company means that your business will remain current in terms of technology and innovation without taking on the high costs for software platforms, cutting-edge technology capabilities, staff hiring and training. A strategic business process outsourcing partner will stay up-to-date on best business practices and innovations in equipment and software with a goal of continuous improvement of your processes over the life of your contract. In the end, the BPO business invests in these cutting-edge capabilities while your business reaps the rewards of such innovation without needing to invest in such capabilities yourself.