As technology is evolving at breakneck speed, it’s been getting significantly to communicate and work with teams across the other end of the world. Accordingly, business process outsourcing companies have been increasing in popularity. In fact, according to research done by CreditDonkey, over 300,000 jobs are outsourced from the US annually. Which makes sense – the advantages of process outsourcing are very hard to pass on, since it can result in reducing company expenses by 15% on average.
What is Business Process Outsourcing (BPO)?
Business Process Outsourcing (BPO) is the contracting of a specific business purpose, such as customer support, marketing, etc. It should not be confounded with the concept of outsourcing as a whole, though. With BPO, you outsource a whole business function, rather than a single job.
The processes outsourced, however, are rarely the focus ones. After all, if it’s something crucial to company success, you really wouldn’t trust a contractor doing it. You’re more likely to profit from outsourcing support roles, such as customer relations. This way, your team back home can focus more on your core duties, rather than trying to acquire new skills.
This is, at the end of the day, a win-win. Instead of having to start a customer support team from scratch, you’re giving the job to a business process outsourcing company that specializes in it – and you’ll end up spending less, to boot.
In terms of outsourcing purposes, there’s a back office and front office.
Business process outsourcing advantages:
There are a lot of advantages for business process outsourcing companies, given that you manage to find the best partner company.
The key advantages are:
Decreased Costs:
The most famous and talked-about benefit for outsourcing is significantly more reasonable expenses.
Depending on where you’re sourcing, costs can be slightly lower. Other than the lower salaries, there’s the combined benefit of getting a “tax break.” While the government doesn’t straight-off give you a tax break, you get the opportunity to defer paying income tax on profits made abroad.
Focus on Core Functions & Improved Support:
If you’re an up-and-coming software startup, you really can’t be confused with starting a huge customer support team from scratch. While doing it appropriate is important, chances are, in-house isn’t the best place for that. If your founding team has a technical background, they won’t be as good in instructing a support team. So, by outsourcing to a company that concentrates on support, you end up with better processes at the same price.
This, in turn, allows your team to concentrate on what’s important for the company – the core methods that make the company stand out.
Global Expansion:
If you determine to enter the French market, you’d be having a very hard time getting started. First of all, you can’t just import your American sales team because of the communication barrier. So, you’d have to send someone from firm management to start a regional department. This, in turn, leads to some other issues – even if the company official is fluent in the language, they’re unlikely to know how the market in that distinct country works.
So, instead, it’s simpler to find a local partner company with a native workforce.
Summary:
So, we can conclude that outsourcing is like an excellent boon for different categories of startups and small-sized businesses.
You can sign a project even if it doesn’t come under your niche and then you can outsource it to the experts or firms who have specific expertise in it. This way you will be able to operate on various domains without any trouble. If you are looking for the best business process outsourcing company that can take your business to a new level without putting any dents in your pocket then you should visit Sure Gig.
