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How Do Companies Benefit From BPO Companies? 9 Must-Read Reasons

    Home Pure Moderation Blog How Do Companies Benefit From BPO Companies? 9 Must-Read Reasons
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    how do companies benefit from bpo companies

    How Do Companies Benefit From BPO Companies? 9 Must-Read Reasons

    By PureModeration | Pure Moderation Blog | 0 comment | 1 November, 2022 | 0

    The business process outsourcing industry has come a long way. From being valued at a decent $7 million (in USD) more than ten years ago to a market size value of $261.9 billion, its growth remains unprecedented.

    Business process outsourcing, or BPO, has shown tremendous promise for many businesses worldwide. Fortune 500 organisations are no strangers to BPO services.

    Which begs the question: “How do companies benefit from BPO companies?”

    No industry is without its own set of challenges and tribulations. But one of the main reasons behind the thriving BPO industry largely has to do with labour cost savings and high availability of English speakers worldwide.

    It’s no surprise, therefore, that countries like India, Vietnam, and the Philippines are among the top destinations for business process outsourcing.

    If you’re considering hiring a third party service provider for non core activities in your business, here’s a guide on the value BPO has brought to many industries.

    Why Do Businesses Outsource Work?

    outsourcing work from bpo companies
    Source: Pexels

    There are several reasons why businesses outsource their work. For one, business process outsourcing allows companies to minimise repetitive tasks and focus on core business functions.

    Outsourcing to a reputable and experienced service provider also gives companies access to a talented pool of agents for better efficiency and productivity.

    Here are the other ways BPO services can benefit other companies:

    1. Save On Costs

    Business process outsourcing brings substantial cost savings for businesses. 

    For example, in-house functions, such as payroll, hiring, and customer service, require high overhead costs. Companies must also allocate a budget for training and onboarding new employees into their processes.

    But such costs are minimised with outsourcing. Businesses can save money on equipment, office space, materials, architecture, and other systems. 

    Outsourced employees will often work offsite. Businesses can still work efficiently without compromising quality.

    2. Expand Globally

    BPO offers opportunities for companies that want to expand abroad but cut back on hiring full-time employees.

    Offshore outsourcing, or outsourcing office operations to another provider overseas, allows businesses to establish a global presence.

    In addition, the outsourced team can offer 24/7 services. BPO agents often work in different shifts — the time difference is advantageous. 

    Organisations can focus on bringing better value all year round to their clients without missing out on potential leads and sales opportunities.

    4. Allocate More Time On Core Business Functions

    Many different services can be delegated to outsourcing companies. Some examples include:

    • Marketing
    • Administrative tasks
    • Customer service
    • Shipping and logistics
    • Information Technology (IT) management
    • Sales
    • Accounting
    • Human resources
    • Content moderation
    • Data entry

    These are part of redundant business activities that, while significant to the business, can take up a massive chunk of time and resources to perform in-house.

    Therefore, outsourcing redundant tasks gives business managers more opportunities to focus on core business and critical functions, such as research or product development.

    5. Gain Access To New Technologies

    Buying and upgrading software/hardware is expensive. These are also risky for small businesses and medium enterprises that may not necessarily have adequate funding.

    On the other hand, upgrading to new technologies will be less hassling for those who outsource to a reliable BPO provider.

    Outsourcing companies will already have access to the newest technologies in the market. They also have the relevant and necessary expertise to handle and manage these technologies.

    6. Work With Talented Professionals

    Outsourcing involves delegating business processes to a highly trained and skilled professional team.

    A BPO service provider, for instance, will train outsourcing teams on the ins and outs of your organisation. You can rely on their expertise to fulfil your company’s daily needs and non core business functions.

    Your in-house employees won’t be bogged down by redundant activities that take time away from their primary roles. They can focus on completing critical projects and meeting deadlines successfully.

    7. Save Time

    The average employee will spend almost 50% of their workweek solely on repetitive activities that bring little value to your organisation’s core products and services.

    But outsourcing these activities can significantly free up time for your employees. Employees won’t have to deal with monotonous tasks. They can instead focus on brainstorming new ideas and creating overall value for your company.

    As a business owner, you must focus on developing your employees’ core competencies and rewarding productivity. 

    Outsourced services allow you to do this. And, your employees will even thank you for it, so you can expect a boost in performance and productivity.

    8. Get Immediate Customer Feedback

    Customer services are frequently outsourced among businesses globally. Offshore and nearshore outsourcing are two popular options. These allow for lower costs and access to top talents.

    Therefore, the outsourced team deployed on your behalf will directly interact with your clients and customers. They’re the first line of communication with your business. They’re the ones gathering customer feedback firsthand.

    As a business owner, you can use this feedback to improve your products and services and provide customer satisfaction.

    9. Better Business Scalability

    Organisations with few fixed costs to handle are more flexible and agile. This means they can create a more solid risk management plan that prepares them for downturns and volatility.

    Experienced professionals from outsourcing providers will become valuable to organisations that want to become more agile and scalable.

    For example, you can partner with a BPO company on a project-based or seasonal basis. The deployed team can immediately help, especially when peak seasons arrive or there’s an uptick in demand for business services.

    Conclusion About Business Process Outsourcing

    Business process outsourcing, or BPO, can benefit your company in more ways than one.

    If you can no longer control rising costs or employees frequently complain about a hectic workload, it may be time to consider outsourcing.

    Contact Pure Moderation for more information. We’re a globally-recognized outsourcing provider offering advanced business solutions for organisations worldwide.

    We provide content moderation, customer service, data entry, labelling, game management, and seasonal BPO services.

    Frequently Asked Questions About Business Process Outsourcing

    What Is The Difference Between BPO And Call Center?

    BPO services include back office activities, like accounting, payroll, or IT support. Meanwhile, call centre services solely deal with customer service through inbound/outbound phone calls.

    What Are BPO Employees Called?

    BPO employees are often referred to as “agents”, “associates”, or executives.

    What Are The Different Kinds Of Outsourcing?

    Here are the different types of outsourcing:

    • Onshore Outsourcing – Outsourcing to a BPO provider in the same country
    • Nearshore Outsourcing – Outsourcing BPO services to a neighbouring country.
    • Offshore Outsourcing – Outsourcing BPO to another country.
    What Are The Signs You Should Outsource?

    Below are some signs that you should begin outsourcing:

    • You have no local customer support agents
    • You want to reduce operating costs
    • Time-consuming activities are overwhelming your employees
    • You need a dedicated team to handle a temporary project
    • You have a high employee turnover rate
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