Many times, people mix up Business Process Outsourcing with a Call Center. Even though they can be relative in a sense, these two are not the same. A call center is one of the few services that Business Process Outsourcing companies have to offer. But let’s take a look at BPO and see what it’s all about.
What is Business Process Outsourcing exactly?
The definition of BPO is “a type of outsourcing where a service provider from a third party carries out one or more functions in one company”. This service provider is responsible when it comes to carrying out operations that are related to different business functions.
These functions can include payroll, telemarketing, social media marketing, accounting, and more. As the demand grows, businesses, especially growing ones, seek advantages to get ahead of any competitors in the industry. BPO allows for the labor force to stay in their home country and work from there while still contribute their skills to the company. If you want to know more in-depth about this, follow the link https://www.investopedia.com/terms/b/business-process-outsourcing.asp.
What is it used for?
It is divided into two types of services most of the time. Those being front and back office. The back office is the one that includes payment processing, billing. These are considered to be internal business processes. The front office deals with marketing, customer relations, sales, tech support. These outsourcing services can be combined to work together and not independently.
Types of BPOs
BPO is divided into three categories. This is based on where the vendor is located. For a business to be thriving, it is best to combine the three categories into 1.
Let’s take a look at each of these areas. Onshore outsourcing is the first. This is utilized when a company engages a service provider who is located in the same nation as the company. Domestic outsourcing is another name for it.
The second kind is nearshore outsourcing, which occurs when a company employs a service provider in a nation nearby to where the company is situated. Offshore outsourcing is the third option. This is when a company employs a service provider from a foreign nation that isn’t too far away.
Why choose Business Process Outsourcing?
Companies choose BPO for many reasons. Few of them being: having to pay the rate of their hosts country income tax, decreasing their costs by having employees in countries that are still growing, avoiding the in house labor costs—having to concentrate on key functions in the company, while the outsourcing focuses more on the specific functions. The company can use those key functions to maximize the overall growth of the company.
When having labored in different countries, the company can expand its presence to not be only in one place. The outsourcing company can communicate with other customers in their native language, in their time zone, making the company look very respectful. When you have an outsourcing company, they tend to focus more on those specific tasks, which saves time and makes everything else more efficient in the business company.
There can be a few cons to having BPO, like having the outsourcing company take your ideas and give them to someone else. Or they move away and leave you on a cliffhanger. This is something that doesn’t happen as often, but you need to be aware of it. Check this page out if you want to know more about this.
How to choose the right BPO?
You notice your company is starting to grow rapidly, and the demand is increasing as well. You are in need of a helping hand, and you don’t know where to look. Your next logical step might be to look for a third-party provider. They can provide many benefits to your company. But, you need to know what to look for before making your decision.
It would help you if you made sure that their performance is excellent. The service they provide has to be on the level that you expect it to be. At first, give them a pilot project to test their skills and see how they perform. These business process outsourcing services have to be on top of their game. Be sure to check out as many services as possible.
They need to be able to take on from you and lead the company with the functions they have. What they provide can be very crucial for the company. It can either make it or break it. There are many people who are willing to do this job. Young, ambitious people who can be on top of it 24/7.
BPO companies in Sri Lanka have proven to take many companies out of debt and actually provide them with crucial economic safety. The only thing to be careful about is whether you are going to choose the right people for it.
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