Technology is progressing at a headlong speed, and it is making communication and work possible in any corner of the world. Similarly, business process outsourcing (BPO) is gaining popularity and is massively growing.
What has been the reason behind the massive growth?
Businesses are embracing and appreciating the BPO model because it is one of the most effective and successful methods of streamlining a business. BPO ensures efficiency and an efficient business is certainly a successful business.
There are many varieties of BPO services, and every BPO model serves a kind of business. It is not a one-size-fits-all approach. Many business owners do not know about this, and we are here to explain in detail about BPO, the different kinds of BPO, its benefits, and how it will help you improve your bottom line.
BPO, or business process outsourcing, is a successful business practice where one company hires another company to execute a task that the hiring company requires for its own business to run efficiently and successfully.
It is the contracting of specific business functions like marketing, accounting and bookkeeping, customer support, back office, etc. The processes outsourced are the core business functions that are related to the company’s success. BPO is different from the entire outsourcing concept.
By outsourcing your business processes, your team can focus on working on other important business functions rather than trying to learn a new skill. At the end of the day, it will be a win-win situation. Instead of setting up a team from scratch to execute an important business function, you are outsourcing that business process to another specialist who is already known for doing that process successfully. You will end up saving more time and spending less.
BPO is often divided into two main types of services: back office and front office. Back-office services include internal business processes, such as billing or purchasing. Front-office services pertain to the contracting company’s customers, such as marketing and tech support. BPOs can combine these services so that they work together, not independently.
BPO is often divided into two main types of functions: back office and front office.
Back-office functions include internal business processes of the company. It is critical and is a great contributor to the success of the front office.
Some back-office functions that can be outsourced include:
Front office functions deal with facing the customers and end-users. Companies that are growing their customer bases rapidly and see a need to focus on service quality usually need the support of the front office to handle their customers well. Some of these functions are:
BPOs usually unite the front-office and back-office functions to work together.
The BPO industry can also be categorized into three types based on the location of the vendor. An organization can successfully achieve total business process optimization by binding the three categories:
For example, a company in Washington, California, could use an onshore outsourcing vendor located in Washington or Texas.
For example, a company in the United States could outsource their business processes to a BPO company in the Philippines or India.
For example, a company in the United States outsources their work to a Mexican BPO company.
While the main advantage of BPO is always cited as greater financial savings, the advantages and its purpose stretch beyond that. The benefits of BPO include the following:
The advantages of BPO are many. The services are unique to every business, and in common, when you opt for a BPO service provider, it is certainly proven to positively impact your business’s bottom line.
The 21st-century global business market is high on energy and dynamism. Exciting competition, disruptive technologies, and an intense focus on customers have fueled the businesses to be nimble and efficient to sustain the competitors and come out successful. And BPO is the fueling rocket.
Now that you know the BPO industry is a boon to your organization, choosing the right vendor can be challenging. You must choose a vendor that uses the right tools and processes, mitigates risks, improves communications, and embraces accountability.
Velan has been a pioneer and the most successful BPO outsourcing partner for clients for more than 14 years. We look beyond short-term solutions and work with our clients in an innovative and transforming way. We ensure every service of ours directly impacts your bottom line. After all, that is the sole objective of the BPO industry.
We follow a holistic approach that is created as a result of our close association with our clients. Our custom solutions offer the best support, especially when it comes to customer handling. We understand our client’s business inside out, offer the right training to agents and handle resource management in a streamlined manner to maximize output.
Contact Velan today to uncover our variety of BPO services that provide scalability and flexibility to suit the custom needs of your business.