Top 5 Benefits of Leveraging Business Process Outsourcing (BPO)
The BPO industry has registered tremendous growth in the last two decades and for a good reason. It provides various opportunities for cost reduction and business growth.
While the average knowledge worker receives $67,500 per year, they spend 41% of their time performing repetitive digital work (1). With business process outsourcing, businesses can ensure that their staff stays focused on the core competencies while delegating out routine and administration activities. One of the other reasons is that repetitive outsourcing processes help leaders meet or exceed their overall business objectives.
What is Business Process Outsourcing (BPO)?
Business Process Outsourcing, or BPO, refers to the process of contracting various business-related responsibilities to a third-party service provider. It is also known as subcontracting or externalization, which is currently used across all industries, making it easier for organizations to dedicate their time and resources to the core business operations.
Where can you leverage BPO in your Business?
Businesses contract with BPO vendors for one of the two reasons:
● Back-office functions include payment processing, information technology services, inventory ordering, talent hunting, recruitment, legal agreement, quality assurance, etc.
● Front-office functions include marketing, sales, lead generation, customer relations, grievance redressal, etc.
Top 5 of leveraging Business Process Outsourcing
● Time-saving
By outsourcing a considerable amount of repetitive responsibilities, businesses can open up the staff for other things to build their core operational skills. Better employee satisfaction will result in greater workplace efficiency. Employees tend to be more happy and productive when their skills are utilized and varied in their jobs.
● Cost-saving
A large portion of a business’s overhead cost maintains the workforce and its processes, such as hiring, training, and onboarding. These processes are not just expensive but timely too. BPO provides an excellent solution by hiring employees who work from locations where the compensation is under budget and enough to fulfill their living costs, resulting in a better return of revenue for the company as well. Since this workforce is offsite, organizations don’t have to worry about their office space, requirements, and other materials.
● Global expansion
BPO can offer numerous benefits for companies looking to expand overseas but are skeptical about hiring full-time employees. It allows companies to do more with less budget and time while improving sales, business development, and customer support. A working staff with regional market knowledge, law expertise, and fluency in foreign languages helps in quicker expansion.
● Better use of time difference
When companies look to expand or have partners worldwide, a common problem is the time difference. With BPO, companies can better advantage of international working hours, which means the turnaround is less than one working day, helping businesses get more done in less time.
● Project-based manpower
Often businesses need additional staffing for short-term projects. Hiring a whole new team requires time with recruitment, selection, and on-boarding. Moreover, organizations might not need this team later. Business process outsourcing solutions help you to set a specific timeline and workflow for such contract-based workers. The knowledge workers can focus on primary duties and avoid menial tasks that may affect their daily productivity.
The BPO Industry: Present and the Future
The BPO industry is already displaying a strong optimism in the overall business development. The growing competitiveness with the pressure of running businesses at a lower cost is acting as the driving force behind the BPO industry’s growth.
In 2019, outsourced services’ global market size was valued at 92.5 billion U.S. dollars, increasing approximately seven billion U.S. dollars from the previous year (2). Overall, the global outsourcing industry is predicted to reach $332.4 billion by 2025 (3).
With new emerging technologies like cloud computing and process automation, the BPO industry will effectively manage market challenges and help businesses operate at lower costs and grow.
How can Red Sky help?
At Red Sky, our experienced experts help you establish a better workflow that is unique to your needs by working together with your team. We use technologies to carry out your business process most affordably and efficiently.
Learn more about our services here.
Endnotes
1. https://www.statista.com/statistics/189788/global-outsourcing-market-size/
