Business process outsourcing or BPO is the use of an external service provider to perform specific non-core but essential tasks in your business.
These tasks, including payroll processing, accounting, customer service, and clerical duties, are delegated by the company to the provider who then takes the full responsibility for these tasks by performing them according to agreed standards of quality.
The US$154 billion BPO industry has grown at an estimated rate of 10.
9% annually.
The worldwide BPO market has been continuously expanding, not just in terms of revenue, but also in terms of processes, tasks andthat may be outsourced.
There is also an increased number of countries and locations that are opening up their shores to the BPO industry.
A majority of people think that the foremost consideration in BPO is the savings in cost.
Saving on salary and benefits that would have been paid to an in-house employee, most companies can pass this savings on to the consumers in the form of lower prices of their goods and services, or they can spend it on other things.
But cost savings is not the be-all and end-all of the advantages of BPOs.
Most companies gain the flexibility that business process outsourcing service providers give.
Firstly, most BPO vendors insist on a fee-for-service basis.
It gives rise to the fact that the company can think of these expenses as a variable cost, not as a fixed cost.
That means the company only pays for the level of service it needs, when it needs it.
Contracting a BPO also allow most businessnes to grow faster.
For instance, a company that would like to set up a call center to augment their customer service would only need to contact a BPO company.
That company will no longer worry about capital expenditures for furniture, personnel and equipment.
Additionally, the company would not worry about having to source, hire and train new employees for the call center.
In effect, the company now has experienced agents in an instant.
They do so at only a fraction of the cost of setting up their own call center.
A BPO provider also allows you to focus more on your core business.
Having mere administrative and other tasks out of the way, especially those considered as non-core, your managers can train their energies on training their people, research and development, closing significant business deals and other areas that would directly impact the bottomline.
It is, however, important to choose your BPO vendor carefully and with much thought.
A company just cannot trust a third party with their insider information just like that.
Ask your colleagues or others in your industry for recommendations and go with one that you could trust.
Lastly, select a BPO vendor with a proven track record in giving their customers the best service for the most cost-effective price!
These tasks, including payroll processing, accounting, customer service, and clerical duties, are delegated by the company to the provider who then takes the full responsibility for these tasks by performing them according to agreed standards of quality.
The US$154 billion BPO industry has grown at an estimated rate of 10.
9% annually.
The worldwide BPO market has been continuously expanding, not just in terms of revenue, but also in terms of processes, tasks andthat may be outsourced.
There is also an increased number of countries and locations that are opening up their shores to the BPO industry.
A majority of people think that the foremost consideration in BPO is the savings in cost.
Saving on salary and benefits that would have been paid to an in-house employee, most companies can pass this savings on to the consumers in the form of lower prices of their goods and services, or they can spend it on other things.
But cost savings is not the be-all and end-all of the advantages of BPOs.
Most companies gain the flexibility that business process outsourcing service providers give.
Firstly, most BPO vendors insist on a fee-for-service basis.
It gives rise to the fact that the company can think of these expenses as a variable cost, not as a fixed cost.
That means the company only pays for the level of service it needs, when it needs it.
Contracting a BPO also allow most businessnes to grow faster.
For instance, a company that would like to set up a call center to augment their customer service would only need to contact a BPO company.
That company will no longer worry about capital expenditures for furniture, personnel and equipment.
Additionally, the company would not worry about having to source, hire and train new employees for the call center.
In effect, the company now has experienced agents in an instant.
They do so at only a fraction of the cost of setting up their own call center.
A BPO provider also allows you to focus more on your core business.
Having mere administrative and other tasks out of the way, especially those considered as non-core, your managers can train their energies on training their people, research and development, closing significant business deals and other areas that would directly impact the bottomline.
It is, however, important to choose your BPO vendor carefully and with much thought.
A company just cannot trust a third party with their insider information just like that.
Ask your colleagues or others in your industry for recommendations and go with one that you could trust.
Lastly, select a BPO vendor with a proven track record in giving their customers the best service for the most cost-effective price!
SHARE
