With
the rapid increase in the development of technology, business operations are
reaching new standards and levels of ease. Although Business Process
Outsourcing has been around for decades, it is widely recognized and sorted out
in recent years due to its beneficial qualities.
According
to Fortunately, about 300,000 jobs get outsourced out of the US each year although
opinions might vary about outsourcing services from highly negative to
exceedingly positive. However, 78% of businesses worldwide hold a positive view
regarding their outsourcing partners.
What
is Business Process Outsourcing (BPO)?
Business
Process Outsourcing is contracting an entire
business function to a third-party company. For example, you can outsource the
complete functions of Human Resources, Accounting, Legal Services, Customer
Support, etc. Functions that are outsourced are less likely to belong to the
core operations of the business presumably because handing over critical
operations to a third party might not be the wisest decision.
Instead,
outsourcing services such as customer support can help your team focus more on
vital operations rather than attempting to perform tasks, they are not skilled
at. You can rest assured knowing that a well experienced and a dedicated
outsourcing company will be handling your functions.
Outsourcing
can be carried out as Back Office and Front Office functions.
Internal processes of the company such as accounting or payroll are considered
as Back office. Functions that include customer interactions such as, customer
support, marketing, etc are regarded as Front office operations.
Types of Outsourcing
There
are 3 types of outsourcing:
1. Offshore
This
is the process of outsourcing to countries far away, ex: from the USA to
Pakistan. This is a great way to save on cost and resources. Developing
countries have low salaries due to low cost of living, making them a cheaper
option to be selected as an offshore partner.
2. Nearshore
When
outsourcing is handed to third-party services in countries that are nearby, ex:
from the USA to Mexico.
3. Onshore
Outsourcing
is carried out in the same country but in different locations or cities. This
method is still effective in cost-cutting as different cities have variations
in living costs making salaries cheaper. You will also benefit from having
native workers in the team avoiding any sort of miscommunications.
Benefits of BPO
• Low Costs
One
of the most prominently discussed benefits is the low expenses of outsourcing
depending on which type of outsourcing you are on. You can also benefit from
the option of deferring to pay income tax on profits made overseas.
Focus on the Important Functions
If
you are a new start-up in the technical field and require a customer support
team, you will be compromising the development of your business with your
divided attention. You might either have to plan on training your existing
staff or hire a dedicated team. While this may hinder your progress and add
extra cost, outsourcing a customer support team will give you the results you
need without taking away your focus from your core functions.
Acquire Skilled Staff
You
can completely ignore the processes of recruitment and the tedious training.
When outsourcing, you will be receiving experts from the relevant fields who
can efficiently complete your tasks the way you want. Also, you will be saving
on office space and resources.
At Horizon
Technologies, we provide Business Process Outsourcing services
for several business functions. Our services are performed by highly qualified
professionals who are experienced in their fields and can perform your tasks
efficiently.
Contact
us to discuss your business requirements and how we can help you by running
your supplementary tasks.
