Those affordable service offerings can add up quickly!Ĭompanies further underestimate the running costs of business process outsourcing, such as service upgrades, contract renegotiations, currency fluctuations, and internal transitions. With information systems (IS), the risk can be even higher since hacking is on the rise, and foreign nations have varying security requirements.ĭidn’t we say business process outsourcers reduce costs?īecause the costs of the services BPO offers are so low, businesses risk the chance of underestimating how much money they are spending on business process outsourcing services. Outsourcing often requires that companies share sensitive data and information with their service providers, creating the likelihood of a security breach. Disadvantages of BPOīPO can also lead to risks that businesses should watch out for.
The availability of multiple languages not only enhances customer experience and customer satisfaction but also gives them a more extensive global presence. As I mentioned in the video above, credit card companies like MasterCard use BPO for customer service. Outsourcing makes it easy to hire a specialized candidate perfect for the job.īPO enables companies to provide services in multiple languages across different time zones. Hiring outside of one’s city or country often lends the opportunity for a more diverse set of skills and specializations. Since companies typically outsource non-critical business processes like financial services, they can allocate more time and effort to the processes that distinguish them in the marketplace. The quality of work completed by external service providers such as web developers or content marketers will be specialized and thus better. For example, if you don’t invest in in-house servers, you don’t have to worry about outdated tech.īusinesses can hire specialized BPO service providers for different processes. Outsourcing noncritical functions allow organizations to use their internal resources for core competencies and essential business functions.īPO also enables businesses to react faster to changing market dynamics by adapting their processes as the market changes. BPO decreases the amount of office space needed to accommodate employees, saving real estate costs.Organizations that outsource their business processes can adopt variable-cost models such as fee-for-service plans, instead of being bound to fixed-cost models.American organizations can accrue tax savings through outsourcing.Outsourced service providers can complete business processes at lower costs because of economies of scale, specialized processes, low-cost countries, and so on.Outsourcing operations lead to more cost savings than hiring your own employees for several reasons: Peak Support provides exceptional customer service outsourcing to high-growth companies, offering a wide array of services with a global delivery model. Wipro is an India based IT service company which also has a BPO department. AccentureĪccenture is one of the largest IT solutions company which also has a BPO division. It also has the highest clients satisfaction rate. Triniter is the most reputed and reliable company in the BPO industry. Quick tip: If you want to optimize your process management through more than BPO, check out process mining. Why Use BPO?īusiness process outsourcing services (including payroll, accounting, data analytics outsourcing) make it easier for businesses to dedicate their time and resources to core business and office operations. While manufacturers initially used BPO, pretty much every industry you can think of around the world now uses it as part of their business models.īusinesses across all industries have adopted BPO because business process outsourcing solutions provide an array of opportunities for cost reduction and business growth. Between 20, the global business process outsourcing (BPO) industry grew at a compound annual growth rate of 4.4% to reach total revenues of $140.3 billion in 2016.īusiness process outsourcing is a subset of outsourcing that involves contracting third-party service providers for various business-related operations and responsibilities.
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