From being a $6 billion industry in the early 2000s to currently being estimated at about $6 trillion, the growth prospects in Business Process Outsourcing or BPO are undeniably tremendous. This has turned developing countries such as India and the Philippines into highly sought service providers.
As businesses are created, many choose to manage their operations in-house. However, as the business thrives, managers and decision-makers are faced with the challenge of consistently meeting customers’ needs and demands while rapidly responding to changing business enviroments. At this point, it makes better sense to turn over non-core functions such as data entry, rebate processing, and third party billing to a BPO company.
This business strategy involves a client company (the outsourced) hiring an external service provider (the outsourcer) to perform a certain task or job for them. One important thing to note is that only non-core activities are usually outsourced including, but not limited to, sales service, customer relations, supply chain management, and real-time accounting.
The primary reason many businesses consider and choose BPO is to cut costs and control their financial integrity for the future. They save money from investing in fixed assets and allow them to redirect these funds for their core activities. Outsourcing continually improves processes by removing wasteful steps and over-spending, which results in better revenues for the company.
Hiring new employees and training them involves a lot of time, money, and effort. When tasks are outsourced to an already established company complete with resources, this inconvenience can be avoided. You are ensured of excellent services provided by experienced professionals.
Since a considerable chunk of the business is outsourced to an external service provider, top management can now focus their attention on core operational areas. This helps them make better and more informed business decisions.
Most BPO employees are in direct contact with the customers. As a result, they are able to receive firsthand feedback about the products and services provided. This valuable information, in turn, will help the client company in improving and adapting to changes in the environment much faster.
Access to State-of-the-Art Technology.
A strategic BPO partner enables you to stay updated on best business practices as well as current technology and innovation. It prevents you from taking risks on high-cost equipment and software platforms and investing in cutting-edge capabilities with the goal of continuously improving your processes over the life of your contract.
Due to the numerous advantages of Business Process Outsourcing, it has seen incredible growth over the years. The industry today is responsible for creating the second highest number of jobs and providing cost-effective services to a lot of business.