What is BPO?
Imagine getting the highest level of productivity from your employees by eliminating the menial, repetitive things that fill up their workdays and keep them from using their core skill sets.
That’s what business process outsourcing, or BPO, can do for you and your business. By outsourcing administrative tasks and other essential functions of your business to a third-party provider like Confie BPO, you can free up your employees to utilize their core competencies. Your employees can focus on the job you hired them to do, not the mundane administrative tasks.
You can choose to use BPO for your back-office tasks like recruiting new employees, creating legal agreements and contracts, or ordering inventory. Or you can outsource front desk tasks like generating sales leads or providing customer service.
By utilizing BPO, you’ll spend less on your business operations while increasing the efficiency of your employees and improving your relationship with customers.
Why is BPO Important for Your Business?
There are many benefits of using business process outsourcing at your organization. The 2020 Global Outsourcing Survey by accounting firm Deloitte shows the top reasons companies use BPO is for:
- Cost reduction (70%)
- Flexibility (40%)
- Speed to market (20%)
- Access to tools and processes (15%)
- Agility (15%)
Here are five benefits of business process outsourcing.
1. BPO Can Save you Money
Running a business involves a lot of overhead, most of which goes into salaries for employees and infrastructure. With today’s costs, buying or renting a building that’s big enough to house your customer service reps, your human resources and IT departments, plus all of their equipment, can be prohibitive. Business process outsourcing can help save you money on the overhead that comes with having full-time employees.
2. BPO Provides You with Flexibility
Business growth is a good thing, but your business should also remain somewhat flexible to react to possible changes in the market. Using nearshore BPO call center services allows you to customize your plan – ramping up during peak times and decreasing when its slower.
3. BPO Can Save You Time
By outsourcing specific administrative and non-essential tasks, you can free up more time during the week that may be better spent on completing projects, planning new projects and working on more essential duties, such as marketing and R&D. It will enable your employees to take on more responsibilities and meet expedited deadlines.
4. BPO Can Give You a Competitive Advantage
When you outsource administrative tasks to a third-party provider, you can focus more of your resources and effort on what makes your business stand out among its competitors. Even if you run a small business, you can compete with the larger companies in the market because BPO helps relieve employee overhead and allows you to use your existing staff to their full potential.
5. BPO Provides Staffing for Short-Term Projects
If your company has a short-term project that will take just a couple of months, hiring additional employees is hardly worth the time, effort, and cost. In this case, you could use BPO to help on the project or work on other tasks while your existing staff focuses their energy on completing the project.
What Processes can BPO Be Used For?
BPO can be used for a wide range of business functions. According to a 2019 report by Clutch, more than one-third of small businesses outsource a back office or front office business process. Most companies use BPO for accounting, IT services, and digital marketing.
Other commonly outsourced processes include:
- Customer service
- Insurance claims
- Shipping and logistics
What Are the Types of BPO?
There are three types of BPO that differ based on the location of the third-party provider.
Offshore outsourcing – Also called “offshoring,” this is when the vendor is located in a foreign company. For example, if a U.S.- based company outsources its customer service to India.
Onshore outsourcing – This is when the third-party vendor is located in the same country as your business but not necessarily in the same city or state. For example, a company in Chicago outsources its IT services to a provider in St. Louis.
Nearshore outsourcing – This is when the third-party vendor is located in a neighboring country. In the U.S., BPO services in Mexico and Canada are nearshore vendors.
How to Pick the Right BPO Provider
When it comes to deciding which BPO vendor to work with, there are several other factors to consider besides just cost. Some important questions to examine are:
- Does the BPO vendor have an adequate understanding of your business and industry?
- Can the BPO vendor meet your current and future needs?
- Is the BPO vendor aware of the regulatory, compliance, and data privacy requirements of your business?
- What is the BPO vendor’s system of reporting to you on how they are doing what you paid them to do?
- Is the BPO vendor readily available to you when you need them?
- Does the BPO share a language and cultural affinity with your customers?
Confie BPO Offers Comprehensive Solutions for Your Business
By outsourcing some of your business processes, whether it’s for accounting, IT, marketing, HR, or other roles, you can increase the efficiency of your business and employees while also saving money. Confie’s BPO solutions can help your business run like a well-oiled machine. Our predominantly bilingual staff can take over many of the administrative and essential tasks involved in the daily operation of your business, letting you and your employees focus on what they do best. We can help you lighten the load of work so your business can achieve maximum productivity and efficiency.
Confie BPO is not new to the BPO scene. Our experience can give you the competitive edge you need to accomplish your goals.