BPO, Business Process Outsourcing or Business Process Outsourcing is the outsourcing of services, especially related to information technology, which brings great benefits to companies. Learn about the most important advantages of outsourcing business areas.
Developing all services and processes internally is sometimes not very operative or even impossible to scale. Just as most large and small companies choose to outsource cleaning or courier services, there is an increasing demand for outsourcing call centers, human resources, finance, back office and so on.
Globalization, the progressive digitalization of communications and changing consumer trends have led many companies to outsource certain business areas, i.e. to opt for BPO solutions. Also the need to increase productivity, expand operations or improve processes, among other advantages. Let's take a closer look.
Changing markets: what is BPO?
Company strategies have changed a lot in recent years. Prioritizing the search for and retention of talent for the performance of specific tasks used to be one of the main objectives.
Is this still the case? In most cases, yes. We all want the best people on our team. However, markets are constantly changing, leading organizations to require ephemeral assignments, i.e. with a specific expiration date.
Is it really necessary to hire a specific professional profile for a transient area? Not really. And this is where the solution to a costly and sometimes difficult to find problem arises: outsourcing.
Business Process Outsourcing
BPO, or Business Process Outsourcing, arises from the need for companies to outsource their processes, allowing them to devote more effort to more strategic and productive tasks.
What does this process outsourcing consist of? It consists of the outsourcing of services, entrusting the administration of part of its resources, services and personnel to a specialized third party, which will carry out a specific task in a specific period of time.
Where is BPO usually applied? Although it is not a written rule, it usually occurs in these areas:
- Front Office: customer service, product or service sales, technical support, customer retention and loyalty, satisfaction surveys and more.
- Back Office: various HR-related tasks. For example, payroll, invoicing, accounting, business analytical logistics, CRM, among others.
If this type of work is carried out within the company's premises, it is known as in-house BPO. Otherwise, it is called off-site BPO.
On many occasions, the BPO is offshored, i.e. the activity is carried out externally, which could include development in other countries. Favorable tax or economic conditions in some countries are often a strong incentive for this decision.
BPO, an added value for your company
If there is something in which BPO services stand out, it is the peace of mind of having a company specialized in a particular area. This has a direct impact on savings and improved results.
In addition, a leading BPO provider will always be in charge of analyzing and detecting the latest trends, applying the latest technologies with the objective of offering innovative solutions adaptable to the client's needs.
BPO solutions contribute decisively to scalability processes. It allows companies to explore development possibilities without stifling contractual commitments. All this by means of state-of-the-art technology, process automation and customized professional profiles.
Advantages of BPO for the company
The benefits of outsourcing for companies are mainly related to profitability and business scalability. These are some of the main advantages:
1. Costs are reduced
The outsourcing of services allows eliminating some fixed costs such as infrastructure and specific personnel. This is a list of the associated costs that would be assumed by the BPO provider:
- Personnel specialized in certain tasks.
- Equipment and technology maintenance.
- Software licenses.
- Talent recruitment, process improvement, R&D, etc.
2. Effectiveness and efficiency
BPO solutions are characterized by their breadth and flexibility to adapt to outsourced services. Here it is very important to have an outsourcing provider that remains up to date with competitive technologies.
3. Reach new goals
As we have seen, by outsourcing services we eliminate infrastructure costs, gain flexibility and adaptability.
The parent company will be able to focus its efforts on setting more ambitious goals and analyzing potential vulnerabilities. This includes everything from launching a new line of business to implementing a new service within the company itself.
Main BPO object areas
BPO services include a wide range of activities, from front to back office in many different sectors:
Administration and Finance
From financial analysis, reporting and financial strategies, to accounting, treasury, risk management, tax payment, etcetera.
An area specialized in the recruitment of candidates, for the most part. Although this is not its only task, we also include the management of payroll and dismissals, selection and hiring, and so on.
One of the most demanded areas. Contact Center solutions or customer care services specialized in sales, collections, non-payment, claims, among many others.
Information Management Services BPO
This area includes all the controls in charge of information flow and support media (software and hardware), as well as everything to do with ICT.
Do you need to outsource part of your processes? At Konecta we are leaders in outsourcing services, we help you expand your operations and guarantee success, adding value to your company in the market.