The trend to outsource business processes has been growing at a staggering rate. In 2017, the outsource market was $88.9 billion. That figure is projected to reach $405.6 billion by 2027 according to a study conducted by Grand View Research Inc.
Companies feel pressure to innovate and find ways to operate more efficiently so they save time, boost productivity, and have more time to enjoy life. After the initial investment, the money saved can then be reinvested back in the business.
To learn more about how outsourcing your business processes can improve operations (and make life easier) read this guide:
What Is Business Process Outsourcing (BPO)?
Business Process Outsourcing subcontracts certain operations to a third-party vendor. Outsourced services are divided into front-office and back-office tasks.
Back-office BPO includes
- accounting
- payroll
- payment processing
- human Resources
- IT Services
- regulatory compliance
- Quality Assurance
Front-office BPO includes
- sales
- marketing
- tech support
- customer service.
How does BPO help?
As companies achieve record-breaking growth, managers and executives must decide what direction to steer the company to see continued growth and productivity levels.
BPO helps with these transitions:
1. Reduce Costs
Reducing costs is one of the main reasons companies switch to BPO services. Many U.S-based BPO companies help international corporations improve their processes and, in return, save those corporations money.
BPO companies discover and minimize inefficient processes and services so they can improve them and save costs. Sometimes these processes are unnecessary and it takes outside eyes to realize they need to be cut out.
2. Focus on Core Business
Outsource to a BPO and focus on what matters. BPO service providers take tasks away from managers and business leaders who then have more time to dedicate to improving core business strategy for continued growth and success.
3. Access To Resources
Working with a BPO company creates instant access to the latest technology and innovations used in the field. These state-of-the-art software programs, technology advancements, staff hiring, and training solutions are generally reserved for big companies with a lot of capital, but with a BPO comany, they’re yours too.
4. Employee attraction and retention
With help to hire better-suited employees and help training those new employees, the company benefits from improved work results and fewer interruptions. In turn, productivity goes up, revenue increases and you can show appreciation for this upward swing with promotions and raises—investing in your employees and nurturing higher retention rates.
5. Personalized Service
When you hire a BPO company, they focus on a custom solution for your business and create a specific plan on how to improve the way you run it. They trim away unnecessary processes and streamline routines after analyzing the mechanics of your company. One size does not fit all here, and you pay for that special attention to detail.
6. Fewer Investments
Cutting edge technology and the advanced resources that come with BPO providers are reason enough to hire them. You can see what is coming down your industry’s pipeline and hit the market with a strategy that puts you ahead of your competition. This innovative peek happens without having to invest large sums of money into technology—because those technologies are provided.
7. Risk Management
Typically when releasing a new product or service, you are not entirely sure of the success it will have in the market. With BPO outsourcing, experience in this field comes standard. BPOs give expert advice on how to proceed and what processes work. These experts provide you with information on what to do to reduce your exposure and risks while adding their support.
8. Flexibility
Free up the resources you have tied up in offices and warehouses. Your mailroom, check printing, and third-party billing can be reassigned to an outsourcing company. Money saved from resource reallocation creates flexibility to put that money back in the core business, improving your bottom line.
9. Global Outreach
One of the benefits of hiring a global BPO company is the worldwide network that comes with it. BPO gives you instant access to a multi-language service center. That means companies can reach out to you from all corners of the world, and you can provide customer service to global consumers.
BPO for Management Solutions
You can see why business process outsourcing is becoming one of the most sought-after management solutions worldwide. It gives managers and leaders more time and money to focus on improving their core business strategy to put themselves in a position to succeed.
For more information on BPO management solutions that can help your business, contact us. We can help!