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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.

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