For very long, businesses and financial institutions have contemplated that business process outsourcing is the best tool to accomplish cost efficiency. The market has achieved the maturity it always bagged for, and BPO services have established the best practices to increase the success rate of businesses.
Gone are the days when businesses used to outsource only their backend tasks. But, nowadays, businesses entrust their front office tasks as well.
Businesses always seek cost-effective ways to get every work done efficiently and within a limited time. Although it doesn’t sound so appealing, and it makes us wonder how anything with absolutely less price can help deliver quality and desired work. But it’s true. BPO services cost businesses a very little and get their most of the work done within a finite budget and time. How and why? Well, we will discuss it later.
This blog is especially for beginners and who aren’t aware of the business process outsourcing. So in this blog, we will discuss the following points-
- What is Business Process Outsourcing?
- What are the benefits that BPO services offer?
- What factors should one consider while selecting a BPO partner?
What is Business Process Outsourcing?
Business process outsourcing (BPO) is a process of entrusting several business-related operations to a third party service provider. The process was originally associated solely with manufacturing company like Coca-Cola. However, the service has now extended and associates with various industries and companies.
From large to small sized businesses, every organization outsources. And why not? After all, they are getting huge benefits from it. Let’s proceed to our second point of discussion and find out the benefits that appropriate BPO services offer.
What are the benefits that BPO services offer?
One of the most important factors that every business considers is the cost reduction. Outsourcing allows businesses to save capital and let them invest in more important tasks such as in modifying the products or services etc.
Increased flexibility and scalability
Your business requirement can increase or decrease, depending on the season but you will never go into loss as your service provider will scale everything accordingly. Outsourcing converts the fixed costs into variable costs, hence, providing your business the more flexibility it requires. In short, outsourcing offers scalability and flexibility to your business.
Boost service quality
When you outsource a part of your business, you not only save cost, but you get a team of highly skilled and experienced agents who have a very good hand at handling whatever work you have delegated. You can increase the quality of the services you offer by leveraging the knowledge and expertise of the agents provided by BPO services.
Let you deliver an additional value to the customer
Outsourcing helps businesses to focus on core competencies so that they work more towards improving their product or service quality. When they get the time to do so, they are capable of delivering an additional value to the customer.
Increases customer satisfaction
There are two ways outsourcing helps businesses to attain a better CSAT score. Firstly, service providers have agents who are expert at handling customers of different behaviours and kind. They listen to every objection of the customer carefully, and the address them properly. Secondly, when companies get time to focus on their core task, they make better strategies and create better products for the customer. Both ways, customers can be satisfied and hence, your business can attain a better CSAT score.
Factors one must consider while choosing a BPO partner
According to studies, BPO contracts typically last for over five years, therefore it’s necessary to select the right partner for your business. However, every business is different and so their selection criteria, too, vary from each other. But listed below are a few crucial factors that are common for every business.
Knowledge and expertise of agents
One of the primary advantages of choosing a BPO partner is to drive value for your business. And, that value can only be achieved by the agent’s knowledge and level of expertise. Because only skilful, knowledgeable, and experienced agents have the potential to deliver top-notch service and hence, quality output.
The chosen service partner must be financially stable and must be supported by a big group that could provide financial help whenever required. You must identify if your partner has an important debt ratio, or are they profitable.
Compliance or security
Because you’re going to disclose a huge amount of data to the service partner so it’s important to verify that your vendor is compliant in all aspects. Because a non-compliant service partner can put the whole organization at risk.
Are they flexible?
Maybe sometimes your business will expect a decline or growth in the quantity of output required. Therefore, you must ensure that your vendor is able to meet up with the requirements. They must be able to support the sudden growth in demand.
With the emergence of technology, it has become very difficult to cope up with the growing expectation of customers and clients. Handling their issues, meeting their expectations etc. are what you can’t manage at your own. BPO services could be the best option for the same.