Business Process Outsourcing (BPO) refers to the contracting of specific operations of a business (or even an entire division) to specialized third-party service providers. This kind of workflow delegation or sub-contracting not only helps enterprises manage their businesses efficiently but also encourages them to take on larger projects, without facing outrageous incremental costs.
Global outsourcing has become a norm now, with a very promising projected growth of $281.25 billion between 2022-2026 – that is a CAGR increase of 8.12%! According to a comprehensive report by MRFR, the BPO services market in the United States itself is set to reach a market size of $381.62 billion by 2030. The key market drivers behind such massive growth estimations are:
Did you know that small businesses outsource their finance & accounting (37%) and IT services (37%) the most?
If you are an SME owner and are not sure which technology to invest in or which business process to outsource is best to meet your business goals, then consider using our Cocolevio consultation services. We’re a consulting firm focused on modern technology, strategy, and business transformation.
With so many BPO agencies in the market, it can be hard to identify the correct service provider for your business.
1. Domain experience – An outsourcing partner must have extensive experience, domain expertise, and know-how, needed to tackle the varied challenges of specialized processes. This assurance can help you stay ahead of your competitors and garner a positive reputation for your business in the marketplace. BPO agencies often support their experience with industry certifications, accreditations, rankings, ratings, and/or awards. These are great indicators of their dependability quotient. It is also advisable that you find your outsourcing partner through referrals, so you can be sure of their performance efficiencies.
2. Infrastructure – If you are looking for a BPO company for end-to-end project management, you should go for one that has invested in:
There are five subcategories of outsourcing that describe the location & type of BPO solution provided: Front-Office, Back-Office, Offshore, Nearshore, and Onshore(domestic). You can select the one that fits your business requirements the most.
3. Quality assurance – As most BPO service providers are based offshore or work remotely, it is hard to have proper quality control on outputs, especially in data processing and manufacturing-focused operations. It is best to select an outsourcing company that has robust reporting, Quality Analysis (QA), and Quality Control (QC) processes in place. These factors impact many important areas of the business such as decision-making, budgeting, product pricing, etc. So, always opt for BPO service providers who include reporting & quality management systems in their KPIs.
4. Data security & risk management – Any enterprise that outsources business processes to third-party vendors or contractors also shares sensitive information with them. This makes businesses vulnerable to data leaks, corruption, and losses. So, while shortlisting your potential BPO partner, it is imperative that you check on the various data security policies and contingency measures they have in place, such as:
5. Fulfillment efficiencies – Only when deliverables are met on time, can the business targets be achieved. There are three variables to be considered in this:
As you must finalize a BPO partner who is committed to fulfilling all outsourced business activities efficiently, you can also ask the shortlisted vendors or BPO agencies to demonstrate their capabilities (as specified in their RFPs or RFQs) by executing a pilot project. You can then assess the service quality and other aspects to determine their competence level to execute the proposed service.
The purpose of outsourcing workflows is to be able to get specialists to perform routine and time-consuming tasks so that the business team can focus their efforts on critical functions. Some popularly outsourced business processes include data entry, customer support, content moderation, data annotation, payroll processing, and recruitment. A dependable BPO partner can make your life easier and workflows smoother by:
A good outsourcing strategy can boost your profits and minimize logistical expenses significantly.
For practical business strategy consultations, you can connect with our Cocolevio advisors at (512) 222-5730 Or visit the website to know more about our services – https://cocolevio.com/