How you can benefit from Business Process Outsourcing (BPO)
Business process outsourcing (BPO) refers to contracting third-party service providers to fulfill certain operations for your company. Outsourcing can be a controversial topic in the business world. The truth is, though, outsourcing doesn’t have to mean packing up your bags and moving your company to the other side of the globe. You can simply outsource parts of your business to ensure it stays competitive in the marketplace.
Will It Save You Money?
The question that will be on reader’s mind is “will it save me money?” It’s true that the perceived lower costs is the main reason companies consider outsourcing aspects of their business. Recent estimates say outsourcing delivers savings of 25-50% as you no longer need to hire as many individuals in-house. This drives recruitment and operation costs down, but this arguably isn’t the major incentive that should be making you consider BPO.
Better Use of Your Time
It’s difficult to run your own business at the best of times and keeping up to date with aspects like administrative duties, data management, and customer support are all time-consuming endeavors. Many of us feel the time spent here would be better utilized focusing on other areas of the business. However, dealing with back office support, data capture/indexing, and company accounts are all critical to running a successful business. This is where outsourcing some of these requirements to a specialist company comes in. Now you and your in-house employees can focus fully on improving your product or services.
More Time in the Day
Another major reason companies decide to take advantage of BPO is to access a full 24-hour work day. If your business deals with an international audience already, or you’re looking to expand, you’ll be able to offer a 24/7 customer support for the added convenience of your clients. It will also help boost your productivity as your offshore contractors can work in a separate time-zone. For instance, performing a server update on your side might take your business offline during peak hours. Rather than paying for extra night staff, you could allocate the task to your contractors to perform instead.
As with any new business partner, make sure you research the credentials of any new company you decide to work with. In an increasingly globalised world, some kind BPO, whether it’s on a small or large scale, will become necessary to companies who want to stay competitive.