There has been a huge demand for business process outsourcing over the past decade. Several companies have used this service to improve their services and have shown positive growth. Globally, 64% of companies are now integrating outsourcing into their operations – in whole or in part. What is business process outsourcing? How effective?
What is Business Process Outsourcing (BPO)?
What is outsourcing? Business Process Outsourcing (BPO) is a business activity that involves bringing in an outside contractor (local or overseas) to work on a specific task of your company. It may include software development projects, business activities such as accounting, bill payments, sales, or IT services. Instead of your employees doing it, another company does it for you.
There are good reasons to engage in business process outsourcing. A specific company wants its IT project, but has no resources. Several companies may want to increase their presence on the internet. However, their staff does not have the necessary skills to meet this requirement. Therefore, hiring team players with the capacity and knowledge will lend a helping hand to the overall growth of your business.
If you’re considering business process outsourcing, here are six ways you can use it to boost your business. And there are good reasons for that!
Six ways to leverage BPO for your business
You can focus on the core functions of your business by hiring outside contractors. This venture will undoubtedly increase revenues and promote efficiency for the entire team.
- Pay less for the same quality of work. Every company wants to minimize costs. For example, you are thinking about software development projects and have no resources, hiring developers from the Philippines will significantly reduce your costs. On the other hand, it can lead to less efficiency. For example, you are thinking about software development projects and have no resources, hiring developers from the Philippines will significantly reduce your costs. However, outsourcing IT projects from countries with lower cost of living will benefit your business.
- Focus on your company’s core competencies. The success of companies depends somewhat on their efficiency. Adding activities that are not the main focus of the entity gradually decreases efficiency. Employees can lose focus on their competencies. At this point, and again, outsourcing is a better option for your business. Hire professionals who will do what they are experts at, and your employee will take care of their duties in the area.
- Get to know new technologies. Some aspects of your business will improve if they are integrated with the latest technology. IT software developers make sure you get the best tools needed to boost your business.
- Ongoing business operations. Most companies work in 10-hour shifts. If you outsource functions to countries with different time zones, your business can go online 24/7 – any day of the year.
- Compete with other companies. When it comes to market shares, larger companies like yours have a greater number of customers. On the other hand, companies using business process outsourcing maximize their overheads and act like large corporations. This behavior often leads to more customers pouring into your business, especially startups. The key to this success is finding an excellent contractor that fits your specific needs.
- Improving business operations. Don’t overlook the opportunities of business process outsourcing; it can work more than you can imagine† Whether you are a small, medium or large enterprise, collaboration or outsourcing of skilled talents from around the world will drive and improve your overall business.
How effective is it?
Companies using BPO services comprise 64% of industries worldwide in the past year. It increased their businesses to reach their target market on a global scale.
Start-ups rely on BPO services to target potential customers abroad. They rely on outside contractors for SEO, IT services, software development projects, engineering, appointments, analysts, and various much-needed skills.
The effectiveness of BPO is beyond question!
What do you need to know about outsourcing business processes?
There are two types of BPO services: backend and frontend services. Backend support (also known as back office) refers to internal activities of the company such as billing and purchasing, managing appointments, even software development and other IT related projects. On the other hand, Frontend services can include marketing strategies, technical support or simply the appearance of the company to the general public.
Typically, companies combine these services based on what they deem most effective.
Moreover, the BPO industry can be divided into three depending on the location of the service provider: offshore, nearshore or onshore. As said, you can hire dedicated developers offshore because you can significantly save your project, especially in countries with lower cost of living.
Whichever category you choose, make sure it fits what your business needs. A businessman in the US said, “There are expected pros and cons of outsourcing talent for your business, but one thing is clear: it saves you time and effort, which probably saves you money.”
Another advantage of BPO is that it is flexible and speeds up your business.
Conclusion
Business Process Outsourcing (BPO) has grown steadily over the past decade. The pandemic couldn’t stop the expansion and is one of the industries that has helped freelancers and businesses continue.
There are excellent reasons to outsource talent, for example from the Philippines or any part of the world. You can expand your presence worldwide by outsourcing business processes. To dive into the deep process, of course, joint confirmation from executives is required.
On the contrary, no one can deny the irresistible benefits of outsourcing and how you can use it to boost your business in this competitive environment. There is only one way up and that is dancing with the ever-changing business environment.
Baptiste Leroux is an engineer in computer science. He initially worked for the Oracle company in Barcelona, Spain. He is a French citizen by nature. Over the years, the nature of the business motivated him to push his boundaries and explore his frontiers in the technology industry.
As a consultant, Baptiste discovered his ability and ability to understand any type of business. It broadened his understanding of business processes, decision-making and business analytics. Young Baptiste enjoyed business, too early to unleash his entrepreneurial skills.
He started his own web start-up company: GlobeDrop.org. This time he is in the Philippines, especially in Cebu, together with talented IT software developers, who form a strong team. The company is now called StarTechUp and now deals with customers from all over the world.
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