6 Ways To Leverage Business Process Outsourcing To Drive Business Growth
Business Process Outsourcing (BPO) involves hiring third party contractors or cloud-based “business process as a service” solutions to undertake your business operations instead of doing them in-house.
Operations can be back-end or front-end, including areas such as accounting, payments, IT services, sales, and marketing.
Organizations outsource for a variety of reasons, primarily because they want a process to be executed properly but lack the internal capacity to do so. For example, companies that don’t have the resources or departments for more technical digital marketing projects should outsource and get help from relevant SEO agencies and guest blogs. Outsourcing allows employees to focus directly on their work.
It also allows organizations to prioritize their main business processes and enables leaders to think clearly. Other benefits of BPO include increased revenue, improved processes, and increased efficiency.
Here are six of the best ways to reinvent your business by leveraging BPO to drive growth.
1. Pay less for the same quality of work
What business doesn’t want to lower its overhead costs? Yet cost reduction is usually associated with sacrificing quality. Outsourcing your processes to countries with lower cost of living and lower wages means you don’t have to make this trade-off. While searching for the cheapest deal possible is probably not the smartest idea, unleashing human potential abroad is.
The advantages of a center of excellence, national or otherwise, are numerous. Say, for example, that you outsource to a call center provider in Mexico. The country is home to a large number of people who are fluent in English, but the average salaries are lower. Poland, on the other hand, might be the place to look for talented software developers.
Businesses can find reasonably priced services in these countries while maintaining their already high standards. Cost reductions, in turn, lead to higher profit margins.
2. Increase the efficiency of your business
Each employee has a particular skill set. If your business has a specialized need but lacks the human talent, there are two internal options: hire someone or learn. Hiring new staff is costly and potentially unnecessary, and wasting time researching is inefficient and likely to lead to errors.
However, hiring a contractor with the precise experience you’re looking for – analyzing employee reviews on websites like UpWork, for example – will ensure you get the professional service you need.
You can choose a contractor who specializes in the right field and rest assured that they won’t make the same mistakes as you. There is a huge pool of freelancers online who work remotely and will bid to take over your project.
Outsourcing processes ensure that the contractor you choose is more qualified than your employees in that particular area. This means that your problem will be solved using the right solution, which will strengthen your business in the long run. Even nuanced processes, such as disciplinary meeting hearing, can also be outsourced. For bigger and more technical tasks, like digital marketing, you can even enlist the help of more expert agencies, helping you optimize your brand, maximize your reach and impact, and reduce customer churn rate.
Your employees will thank you too, and you will have happy employees who aren’t asked to do jobs they don’t have the qualifications or skills to do.
3. 24-7-365 business operations
There are obvious advantages to running a business that outsources its operations to several different time zones. Your business can be essentially nonstop. Imagine a software operation that starts working at 9 a.m. in Australia, continues in Europe, then ends in Latin America – to instantly restart in Australia.
There are also advantages to working together as global teams. Research has shown that people from different cultures can solve a problem by approaching it from many different angles, which is good for your business.
4. Access the latest technologies
From mobile bot apps to augmented reality, keeping up with the latest technology and software developments is difficult. These are fast-paced fields, and companies have to spend a lot of time and resources keeping up with the changes, which can lead to huge overhead costs.
However, by outsourcing to specialist IT companies who have already invested in software and employ experts, companies can take advantage of the latest technology without the hassle or costs of trying to do it themselves.
Even global organizations with large offices can benefit from outsourcing IT services to professional companies because they don’t have to manage these processes in-house. This allows them to focus on what the company does best.
Additionally, businesses need to collect data on everything they do on a daily basis – a record of every customer contacted and emails sent. Outsourcing this task to specialized companies that use the latest technological platforms to maintain and manage an organization’s data is a more secure and efficient process than doing it in-house.
5. Improve your operations
The repetitive processes performed daily are a good place for a business to start outsourcing. Small, medium and large businesses can avoid having to regularly perform boring tasks that suck innovation from employees and managers. Instead, they can outsource to expert companies that are often located in cheaper countries.
The easiest procedures to outsource include order fulfillment, onboarding, and KYC fulfillment. This would improve operations, as senior management would not have to become involved in potentially complex investigations.
6. Compete with big companies
Large companies have a larger market share because they have the internal capacity to employ experts in various fields. This attracts more customers and the cycle repeats itself, only serving to consolidate their dominance.
But BPO is a way for small businesses to level the playing field. They can’t put more staff on the payroll, but they can find a great contractor to meet specific needs. This allows them to behave as if they are much larger companies, but without the overhead. Even small businesses can compete with market leaders if they make smart use of outsourcing.
Every business should spend the majority of its time doing what it does well. Using employees’ hours and efforts on complex tasks in which they are not specialized is at best a waste of time and at worst dangerous.
Fortunately, we live in a long time ago when specialized tasks can be left to excellent professionals who know how to do what you don’t do.
Outsourcing has countless benefits, ranging from allowing your business to compete with much larger companies, to being able to operate around the clock, which will boost your long-term growth.