Venturing out into a business is a gamble itself. Maintaining one though is proven to be arduous and strenuous especially at this present time when the world demands efficiency on almost everything. Small businesses like private corporations and partnerships require investments for the company and its employees to stay in the competition. A lot of time is required and efforts must be doubled to stay on top. So how can a business be efficient in its expenses and priorities?
Many companies have resorted to entrusting parts of their tasks and deliverables to remote workers or freelancers. They send work, communicate, and even send money internationally through the internet. Bigger jobs and projects are better handled by an organized team or third-party vendors called Business Process Outsourcing (BPO). This industry has exponentially grown in the past year and has helped small businesses in the following ways:
1. Operational Cost – Outsourcing allowed businessmen to hire professionals with the needed skillset for the work to be done rather than a full-time worker which has proved to be more cost efficient. This reduces the need for building expansion and additional employment cost.
2. Company Flexibility – Businesses become more adaptable to change. Quality services are delivered speedily and freelancers are getting paid better too.
3. Save on Investments – Technology needed to run the business, facilities, infrastructures and even upskilling workers are now responsibilities of the outsourcing partner reducing the investment required for the business.
4. Business Growth – Money saved from low operational cost and savings from investments can be allotted for other purposes like the growth of the company. Plans for expansion will be feasible and achievable.
Business Process Outsourcing (BPO) are divided into two categories. The first one is the back office which caters organization services like data encoding and accounting support. The second is front office for customer-facing services like customer care and technical support. BPO offers services to almost all businesses and the industry has been continuously growing especially in Asian countries. This is not a surprise as hiring a third-party vendor to take care of the business poses the following advantages:
1. Reporting – Business owners can now receive quick and accurate data they need to analyze the trend of their business. They don’t need to stay up late to work on reports. Reports are run even with differences in time zones.
2. Services – Outsourcing unit is committed to serving with excellence, services are provided with efficiency and speed resulting to quality delivered to customers. This is their way of staying in the competition especially with the industry growing every minute.
3. Technology – With the ever-changing world, it is important that businesses are up to date with the latest technology that’ll make work easier like a new software or how to transfer money online the easiest. BPO companies surely provide this advantage to their clients.
4. Resources – Employment resources like staffing or training is reduced when a company goes for outsourcing. The BPO company takes responsibility for the remote workers and other resources needed to deploy professional and skilled employees for the work.
5. Focus – With lesser restraints in time and manpower, businessmen can focus on other areas of the business that can be improved or those that can give them a competitive advantage. This can result in a fast-paced expansion for the company while still maintaining low-cost service.
With these advantages and the spontaneous growth of the industry, more and more businesses are investing to integrate BPO services into their business model. Leading in catering outsourcing business is India which covers 63% of all offshore sites and shares 5-6% of the BPO industry worldwide. The country even houses one of the biggest BPO company, HCL Technologies. Other countries like China, Malaysia and the Philippines are also included in the top 10 countries for BPO services. Asian countries are indeed in the hype of providing outsourcing units. They are found ideal for the following reasons:
1. Better Rates – Hourly rates for European countries vary greatly from that of Asian countries which make Asia an ideal place for establishing remote workers and offshore sites. This also gives more savings to businesses and still ensure quality of service.
2. Culture – Asians are widely known for being friendly and courteous. These traits are considered part of their culture. This provided their competitive edge in outsourcing especially in the field of customer service, technical support and sales.
3. Economic Growth – BPO industry has been a huge help in the economy. In fact, the Philippines alone generated a revenue of $25 billion last 2016 from employees of outsourcing units. For this reason alone, South Africa is now trying to establish outsourcing industry of its own.
It is a challenge to manage a business and maintain its growth. After all, it is the welfare of the people working for the business that we are taking care of. During these modern times, flexibility and adaptability to change is a competitive edge. Services should be delivered fast and with superb quality. Being effective and efficient are the ultimate keys to a business’ success which BPO companies can provide. This partnership has made running a business significantly easier not just for the businessmen but for the employees, freelancers, and customers too.