Global business scenario has become fiercely competitive. Businesses, right from retail to logistics and from telecommunications to energy & utilities, are struggling hard to stay strong and achieve an edge over competitors.
Since, most of the business processes are executed in-house; enterprises find it difficult to concentrate on their core competencies. They find their resources getting caught up with various non-core activities like document management, data processing, data entry and so on. It mostly affects their overall productivity and operational efficiencies and hence; often fails to cope up with the jet-pace market transitions.
Therefore, many companies have realized the significance of handing-off non-core duties to BPO service provider. When it comes to BPO or business process outsourcing, the concept gets restricted just to the call-centers. It is often never seen in a much broader light. Business process outsourcing or BPO mainly consists of assigning various back-office operations to a third party service provider.
The concept of BPO was previously restricted to manufacturing industry. However, presently, it has branched into outsourcing various back-office operations for industries like banks, real-estate, and insurance, healthcare and so on.
While BPO and call centers are generally seen in the same light, it is important to understand that there are numerous other back-office operations which can contracted as well. These include:
- Data Entry
- Data Processing
- Real Estate Database Management
- Data Collection
- Web Research
- Mortgage Data Processing
- Invoice Processing
- Claims Processing
Benefits of outsourcing business processes – An Overview
Over the years, BPO has emerged as a powerful business tool. Almost every industry, right from real estate to logistic and from banks/financial institutes to marketing agencies, are using it to achieve a wide range of strategic aims.
Enhanced business adaptability has been the principal benefit that companies can have by contracting their non-core tasks to a BPO service provider. Moreover, at the turn of the century, BPO was essentially about cost-efficiency, which was followed by flexibility.
However, as technology advancement and drastic shift in the industries, many enterprises chose to outsource a variety of back-office tasks and eliminate operational bottlenecks. In fact, a modern-day entrepreneur or C-suit needs to envision it as a means to enhance quality control and operational efficiencies.
In addition to this, BPO also enhances the versatility in a number of ways like:
1. Pay-as-you-go or Pay for what you demand
A majority of services offered by a third-party service provider are delivered as a part of fee-for-service agreement. This, in turn helps the businesses to convert the fixed expense into variable expense. Moreover, you can pay only for those services which you really require. It does not come as a package, where you have to pay for entire suite of solutions. This eventually helps in responding to the variations in the expected volume and even does not demand huge investment in any assets.
2. Enhanced concentration on core competencies
Another major area where BPO brings more flexibility is shifting focus back to the core competencies and not restricting to operational rigidness. Outsourcing, frees up important resources, which are usually occupied by non-core or low-key jobs. These freed up resources, can be further diverted and put into better use to handle and look over company’s core business.
Focusing on areas like product development and management, customer care and operational review help a business to get a competing stance. BPO enables the business to concentrate better on these key areas.
3. Enhanced quality
What seems to be the non-core, non-productive tasks for many businesses, forms the core operational area for the BPO service provider! Since, it is their bread and butter they have developed expertise, skills and even have the required technology to ensure quality results are delivered. With enhanced quality and efficiency, the businesses can further ensure excellent service for their clients/consumers.
4. A global advantage
Top BPO companies have robust infrastructure and expertise that can help your business to achieve a competitive edge at a global level, with least of the expenses. As several BPO companies have numerous nearshore offices, located across geographies, they easily eliminate the time-zone and language barriers for providing process and project excellence.
5. Smoother life cycle
Flexibility is always regarded as one of the major stepping stone in the organization’s life-cycle. BPO helps to sustain growth, while eliminating the bottlenecks.
BPOs allow enterprises to remain agile and pace up with the rapidly changing market scenarios, which often get sacrificed, to enhance productivity as they grow in revenues and size. However, when contracted it to a third party, businesses can ensure a smooth life-cycle. Unrestricted by huge capital investments, a company can still maintain its accelerated growth.
6. Reduced overhead expenses
One of the most common reasons that has made outsourcing a trend, is the reduced labor costs. Leading BPO players focus to enhance their methods and reduce any wasteful actions, along with augmenting the quality of work. With their knowledge and expertise, they can implement services more efficiently, and even bring down the costs.
Though business process outsourcing has garnered lot of negative press and has been a frequent topic of discussion, one cannot simply overlook the benefits that BPO service providers bring in for the business. It helps the businesses to focus more on core areas and even reduce the operational bottlenecks.
About Ritesh Sanghani