Definition
Business Process Outsourcing - BPO -is hiring an outside party to handle standard business tasks. These outsourced employees are not members of the company but operate as independent contractors, either as part of a business or a solo venture.
What Can be Outsourced?
There are multiple tasks that businesses outsource rather than handle in-house. Here are some of the most common jobs that companies use for outsourcing.
Accounting
Many businesses prefer to outsource their accounting rather than paying for a full-time, in-house accountant. Outsourcing your accounting ensures your finances are accurate and saves money and time.
Order Entry
Businesses have to track their purchase orders to keep accurate records. Order entry is a tedious, time-consuming process. Allowing a third-party to handle the task means your staff can handle the important jobs.
Data Entry
Like order entry, companies also end up with a ton of data they have to keep expertly organized and compiled. You can outsource to get it done faster and cheaper.
Sales Support
Another task many businesses outsource is sales support. If you operate a small staff of crucial employees who have tasks vital to your company's operation, you don't want them stuck on support calls.
IT / Software
Many small businesses may not be able to employ a dedicated IT or software division. Outsourcing these technical aspects ensures your customers receive correct advice from trained staff that you don't employ.
Benefits of using a BPO
Focus on Core Capabilities
Many small businesses and start-ups are not fully equipped with the staff, equipment, and knowledge to handle ancillary business practices.
Outsourcing non-core tasks allows your staff to focus on the main tasks of the job.
Frees up Time for Important Employees
When you outsource tasks, you ensure that your staff has the time to focus on their regular tasks and responsibilities. Staff will have higher efficiency and productivity.
Reduce New Hire Costs
When you outsource tasks, you reduce hiring new staff. Rather than paying for new employees' training and salary, you can pay a lower fee to an agent.
Considerations When Selecting a BPO Supplier:
- 1) Geographic Location
- 2) Employee Model (Shared or Dedicated)
- 3) English Proficiency
Considerations When Selecting a BPO Supplier
Geographic Location
When selecting a BPO provider, you need to consider the geographic location. BPOs operate as onshore, nearshore, or offshore outsourcing.
Onshore outsourcing means you contract a provider in the same country. Nearshore means in a neighboring country. While with offshore contracting - also referred to as offshoring - the party is in another country not close.
Outsourcing non-core tasks allows the staff to focus on the main tasks of the job.
Employee Model (Shared or Dedicated)
Finally, consider if the employee or company operates as a shared or dedicated agent. Shared agents also work with other clients. Dedicated agents work only for you.
Want to know how Delegate CX does BPO? Discover more about what we do.
What We DoEnglish Proficiency
When choosing an outsourcing supplier, especially with offshoring, ensure that the contractor is proficient in English. Offshore third-parties usually use staff that's not as accurate and efficient as a native-English speaking company.
Closing
If you're looking for ways to keep costs and the number of staff members low, consider BPO. Business Process Outsourcing can help your business run efficiently, reduce the stress on crucial staff members, and save money.
