Outsourcing to BPO Companies – Some Facts

With Business Process Outsourcing (BPO) companies offering specialized services at competitive costs, large companies are increasingly outsourcing the non-core part of their business operations to BPO companies. Even if the BPO services provider is based halfway across the globe from its client company, it is able to seamlessly integrate its workflow with that of the client company and thus complete tasks in real time and with assured quality.

The most common outsourced work includes SEO and Web Development services, Transcription Services and Data entry Projects, software development, data and voice call center, etc.

Reasons for outsourcing

Outsourcing has witnessed huge rise in popularity in recent times for a variety of reasons; the most common of them are:

o Certain processes can be performed at much lower costs from remote locations because of certain local factors such as cheap talent.

o An MNC draws customers all over the world. Hiring local people helps the company to ce so to serve them better local talent is required.

o Because of budgetary or legal or some other constraint it is not possible nor is to feasible to build up the necessary capacity for expansion.

o Certain non core processes are draining significant resources and time which can be gainfully employed to sharpen the core skills.

Benefits of Outsourcing to BPO companies

o Access to latest technology without heavy capital investment

o Access to wide range of talent at very economical cost.

o Specific supplier benefits. For example, better network security, continuity, etc.

o Higher quality service due to focus of the BPO company

o Less strain on precious internal resources

o Save on time, effort, infrastructure and resources

o Large volume of work can be finished on time as good BPO companies have necessary scale and expertise to handle such jobs.

Right way to outsource

Streamline the process: Before outsourcing any process companies should streamline it with active involvement of the BPO service providers. This will ensure that there are no delays in implementing the process. If there are problems because of inconsistencies between the implemented process and the desired one, then clear understanding of the controls and parameters is necessary to achieve business objectives.

Outsource the right process: Admittedly all the processes cannot be outsourced for various reasons. Find out the process to be outsourced by asking yourself following questions:

o Has the process to be outsourced been streamlined and is there a proper documentation to define various stages of the process?

o Have the parameters to control the outcome quality of the process been identified and documented?

o Will the BPO company execute service level agreement (SLA) and will it be able to provide right real time monitoring.

Choose the right BPO partner: Choosing the right BPO service provider will reduce the risk, time, and expense involved in the commissioning, running and implementing an outsourced process. The best BPO partner is the one whose business process management (BPM) closely parallels yours. In this case there won’t be any problems in transferring and implementing the process at BPO end because of close resemblance in management and control procedures.

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