Business process outsourcing (BPO) is a common strategy companies use to streamline operations, reduce costs, and manage a high volume of repetitive processes. Learn more about business process outsourcing, why companies do it, and how BPO software can help your team deliver seamless user experiences and process harmony.
What is BPO?
Business process outsourcing refers to an arrangement in which a company pays an external provider to manage or fulfill one of its business functions. Typically, the outsourced functions are IT-intensive.
For example, companies that sell products may outsource the manufacturing process. Credit card companies and banks may outsource their customer service departments. Other business processes that are frequently outsourced include IT, finance, and marketing.
Read this content to learn more: What is Business Process Outsourcing (BPO)?
Why do companies outsource?
There are many reasons why companies choose to outsource part of their business operations. Most of these reasons tie back to helping the company stay more competitive by lowering costs or improving the quality of the outsourced process.
|Reduce operational costs||Outsourcing with a company that specializes in the services provided is often less expensive than hiring the people and purchasing the equipment and space needed to manage the process in-house. That’s because the service provider specializes in the area and has developed a more efficient process.|
|Improve access to the right talent||Hiring and managing employees is expensive, and needs can fluctuate over time. Outsourcing helps companies manage the cost of hiring and remain competitive by increasing access to qualified applicants outside the immediate business area.|
|Maintain agility||Outsourcing makes it easier for companies to scale up or down quickly as the competitive landscape changes.|
|Improve service quality||Service providers can often deliver higher quality services because they specialize in the services they offer.|
|Focus on business core||By outsourcing support services or administrative processes, businesses are able to redirect their energy and time toward the core processes that drive value for the business.|
What types of business processes can be outsourced?
Many types of processes are candidates for outsourcing. That includes IT service, customer support, finance processes, marketing, human resources processes (such as recruiting or payroll), or data entry. Other processes may also be outsourced depending on the industry, company, and competitive space.
The right process management software can make outsourcing easier to manage and create a seamless user experience for internal and external customers. Look for process management software that scales effortlessly, automates repetitive tasks, and integrates with a wide range of software and apps for end-to-end visibility. Other features that will make outsourcing easier include: