Every day, your employees undertake several key tasks to help your business function and grow. From sales to customer support services, these tasks are crucial to the success of your business.
But there are instances where you may need help maintaining efficiency for these and other tasks. This is why many companies turn to business process outsourcing (BPO).
In a nutshell, BPO is the practice of contracting specific business processes to an outsourcing company. Doing so improves efficiency by allowing your staff to focus on important work that promotes business growth.
What is BPO Services?
Businesses of all sizes and across various industries sometimes contract a BPO company to handle various processes on their behalf.
Business process outsourcing services provide a range of benefits, depending on the type of BPO you choose. Some of the tasks most commonly associated with BPO include:
- Legal work
- Tech support
- Market research
- Customer support
- Payroll management
- Accounting and financial services
Core business processes such as management responsibilities, procurement and product development are not typically outsourced.
Types of Business Process Outsourcing
There are three types of BPO arrangements: onshore outsourcing, offshore outsourcing and nearshore outsourcing.
The latter two involve outsourcing business processes to companies that operate overseas and in neighbouring countries, respectively. While these are certainly viable options for some businesses, others prefer onshore outsourcing.
Also referred to as domestic outsourcing, onshore outsourcing is when you use a BPO company in the same country you operate in. This provides added convenience for your business because it helps you avoid these potential issues:
- Cultural differences. Some offshore outsourcing companies observe different holidays that could conflict with your work or production schedules.
- Easier communication. Onshore outsourcing helps you avoid communication issues and language barriers by dealing with a company whose employees are fluent in the language spoken at your business.
Onshore BPO is an increasingly prevalent practice, and is set to continue growing. A recent study on business process outsourcing trends indicated that the business process outsourcing market will grow by over USD $104 billion from 2020 to 2024.
The Benefits of BPO
BPO brings with it a number of benefits. These include:
- Cost savings on in-house staffing and training, in addition to office space and equipment such as software and hardware. You can also take advantage of variable-cost payment models instead of the fixed cost of in-house employees.
- Improved results. Onshore BPO companies specialize in these processes, providing staff who are already well-trained and versed in the service they provide, meaning consistently high-value performance.
- Flexibility. BPO allows you to scale your business with ease, since there’s no need to hire and train additional in-house staff.
- Improved in-house performance in core areas. This helps you focus on your main offerings instead of expending overhead on performing and monitoring non-core processes. There are only so many hours in a day, and BPO enables you to focus your time on the most important, impactful tasks.
BPO, in the form of cloud computing services, also provides improved business continuity. Cloud software minimizes your in-house IT requirements and enables staff to access business-critical files remotely.
Business Process Outsourcing Examples
Typically, companies outsource supplementary processes. These can be split into two categories: back office and front office services.
Back office refers to business processes, like information technology services, human resources, finance/accounting, and so on.
Front office, on the other hand, refers to front-facing processes such as customer support and sales.
A number of subsets of BPO also exist:
- Knowledge Process Outsourcing (KPO): Outsourcing data-driven, knowledge-intensive activities such as data analytics and management.
- Legal Process Outsourcing (LPO): This is itself a subset of KPO, and encompasses a wide range of legal work. For example, drafting patent applications and legal agreements, as well as performing legal research, fall under LPO.
- Research Process Outsourcing (RPO): RPO encompasses research and analysis processes, such as market research. This is especially important for companies such as marketing firms who need up-to-date research available rapidly.
Is BPO Right for You?
Although it’s an impactful and valuable move, outsourcing services can be a daunting consideration, with so many options available.
If you’re debating whether BPO is the right move for your business, contact Triton Technologies today for a consultation. We will be happy to answer your questions and help you explore your BPO options.