In today’s inter-connected world, a successful business is often an efficient one. They focus on using smart, innovative processes with suitably adept management. Modern process management tactics used by a BPO company in India can take your business to a whole new level.
Business process outsourcing (BPO) can bring a positive change if carried out in a careful manner and with a quality outsourcing partner. In fact, BPO is the practice of contracting a specific business process or processes to a third-party vendor. The services may include payroll, accounting, data recording, telemarketing, social media marketing, customer support, and more.
From startups to massive Fortune 500 companies, businesses of all sizes outsource their processes. The demand seems to continue to grow as new and innovative services are introduced. Businesses seek outsourcing advantages to gain an edge over their competitors.
BPO is often categorized into two main types of services, including back and front office. Back-office services consist of internal business processes like billing or purchasing. On the other hand, front-office services include contracting a company’s customers like marketing and tech support.
The BPO industry in India is divided into three major categories depending on the location of the outsourcing partner.
- Offshore vendors work outside of the company’s own country. For instance, a U.S. company may use an offshore BPO partner in the Philippines.
- Nearshore vendors are located in countries that neighbour the contracting company’s country.
- Onshore vendors operate in the same country as the contractor. However, they may be located in a different state or city.
Why Do Businesses Outsource Processes?
Businesses choose to outsource their processes for many reasons. Here are the reasons why businesses engage in outsourcing:
To Decrease Costs
Outsourcing cuts down the costs for in-house labour, especially for staffing, training, and the workspace to accommodate employees. An outsourcing company situated in a developing country leverages lower-cost labour markets. All in all, outsourcing enables businesses to use variable-cost models instead of fixed-cost models, which are required to retain existing employees.
To Concentrate On Key Functions
Outsourcing enables businesses to focus on their main offerings instead of functions that are not directly tied to their core processes. For instance, when outsourcing, the company would not have to monitor the payroll accountant’s performance.
It can focus on maximizing its overall growth. In turn, this can boost a company’s competitive advantage and maximize its interactions with the value chain. Eventually, the company can enjoy improved customer satisfaction and improved profits.
To Achieve Better Results in Non-core Functions
Outsourcing companies specialize in non-core functions of other businesses, delivering world-class services to their clients. An outsourcing company invests in specialized processes and, hence, can provide cutting-edge breakthroughs to its potential clients.
To expand their global presence
Some outsourcing companies can serve their clients in multiple languages, around the clock. It relieves the local company from the responsibility. They can leverage their presence in numerous countries and keep the local company’s redundant divisions to a minimum.
Met Technologies is a leading BPO company offering a wide range of BPO services at an affordable price. Please visit our website for more information.