Business Process Outsourcing, popularly known as BPO, is the business strategy where one company hires another company to perform a certain task for them, i.e. they outsource a certain job. Outsourcing customer services, technical support etc. to a BPO is either cheaper or the BPO provider is just better at providing the service. The reason for companies to outsource their business processes is pretty simple. Business Process Outsourcing enables business owners to reduce the burden of work and concentrate on other core aspects of their operation. Outsourcing to a third-party company, which is already well-established and has the relevant experience in providing services, is a much more convenient option. Outsourcing your business processes comes with a series of advantages. Some of those include:
Availability of Experienced Professionals:
Recruiting new employees and training them involves a lot of hassle and is a big cost to the company. When the tasks are outsourced to an already established company with all the resources, the troubles of hiring and training is conveniently avoided. Outsourcing companies employees can do the job better with their knowledge and understanding of the domain. This leads to an increase in productivity and efficiency in the process thereby contributing to the bottom-line of your company.
Cost Reduction: BPO solutions enable companies not only to identify costs accurately but also result in variable costs that adapt automatically to the companies business activities, as opposed to fixed costs which are very hard to change (such as payroll and systems depreciation). Outsourcing helps organizations cut costs and save money, and is one of the most important reasons for people opting to outsource their business process. BPO has given rise to a talented pool of employees available at low wages results in huge cost reductions, which in turn results in better revenues for the company. There is a cost savings of around 30% by outsourcing your work to other companies. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality.
Ability to Focus on Core Business: Business Process Outsourcing enables business owners to reduce the burden of work and concentrate on other core aspects of their operation. Outsourcing to a third-party company, which is already well-established and has the relevant experience in providing services, is a much more convenient option. Since a considerable chunk of the business is outsourced to a service provider, the top management of the company can focus their attention on core operational areas. This also leads to better employee productivity and helps them make better and more informed business decisions.
Access to the Latest Updated Technologies: Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner takes the responsibility of the business processes and hence develops infrastructure for the same. Buying a licensed version of the latest software and other technologies is very expensive. This proposition is also risky, especially for small to medium-sized businesses who cannot afford to dedicate a steady budget to buying the latest technologies. Therefore, it becomes difficult for a company to stay updated with the latest developments. Outsourcing to companies that already have access to the technology and have the relevant expertise therefore proves to be more advantageous for global organizations.
Excellent Employment Opportunity: BPO companies also act as a buffer against unemployment and at the same time provide the graduates in the countries where they operate with a chance to move up the economic ladder. In fact, many studies have pointed to this fact, where previously economically underprivileged sections have benefited to a large extent because of the earnings that they have made by working in the BPO sector. The BPO industry is one of the highest job providers in most countries. The remuneration provided to the employees is also one of the best in the industry, which is one of the major reasons for youngsters to work in BPO. The BPO industry has provided employment to a lot of talented youngsters and has single-handedly changed the GDP of various small countries.
