How to Choose A BPO Company
The most popular strategy used by businesses to compete on the international market is outsourcing. Since the pandemic, when everyone goes online, it has become imperative to provide top-notch customer service.
For many businesses, maintaining internal teams for non-core business operations seems overwhelming. When choosing to outsource, large number of businesses that offer the best BPO services for a reasonable cost. The reduction of business risk, economies of scale, superior competency, and increased utilisation are all contributing to the explosive growth of the BPO market.
Business process outsourcing, or BPO as it is more commonly known, is a business strategy where a company hires another company to carry out a specific task for them, or they outsource a specific job.
Consider the scenario where a manufacturing company hires a supply chain management specialist to manage its supply chain. Therefore, it essentially entails contracting with an outside service provider to handle one or more non-core business activities or processes. There are thus two parties: the client company (the outsourced) and the vendor or outside service provider.
How to Choose a Business process outsourcing company
One thing to keep in mind is that non-core tasks are typically the only ones outsourced. The businesses continue to place all of their attention on their core competencies, such as manufacturing, marketing, etc.
However, non-core services like real-time accounting, supply chain management, after-sales support, and customer relations can be contracted out to BPOs.
Advantages of a BPO Company
1. Versatility
Using a BPO to outsource non-core tasks enables a business to be much more adaptable. First off, by converting them to variable costs, the company can avoid investing in additional fixed assets. It also helps the client company manage resources more adaptably and respond to environmental changes more quickly.
2. Relatively Cheap
For the client company, outsourcing some business operations and tasks can be very cost-effective. They avoid spending money on fixed costs and assets. Additionally, they can use these funds to support their main objectives.
Additionally, outsourcing to developing nations works out to be very cost-effective for these businesses. For instance, any significant MNC would save, on average, 30% of its costs if it outsourced its IT services.
3. Speed
The fact that BPOs accelerate the business processes that are outsourced to them is one of their biggest benefits. They respond quickly, allowing clients to concentrate on their main tasks. This division of labour speeds up the entire process and is crucial in situations like customer service.
4. Skilled Workforce
When you contract out a part of your business to a BPO, you are guaranteed to receive excellent services from knowledgeable staff. So you can be sure that your supply chain will be managed by knowledgeable supply chain managers who are authorities in their field if you outsource supply chain management. The same is true for accounting or IT services, etc.
Solved Question on Business Process Outsourcing
Q: What are some of the types of outsourced services?
Ans: Some of the services popularly outsourced are,
- Financial Services
- Advertising Services
- Courier Services
- Customer Support Services
Building a strategic partnership with an able BPO partner is crucial if you want to expand your business in the offshore market. The majority of outsourcing companies have experience implementing cutting-edge technology, which results in quicker turnaround times and high-quality services.
Cocolevio specializes in offering a wide range of low-cost outsourcing services, from customer support to data entry, back-office assistance to photo editing.
