Sarah Ali https://www.learningquraan.co.uk 3m 732
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Business process outsourcing (BPO) offers many benefits to the business organization. However, businesses need to understand what BPO can offer before looking at their specific needs and requirements. Because there are so many different types of organizations, each with its individual needs and goals, it is impossible to generalize which companies should benefit most from outsourcing. For example, some companies will attempt primarily cost-cutting by relocating activities that would be expensive if done in-house. Still, others may wish to outsource mainly for competitive reasons – i.e. ensuring that they stay ahead of the competition rather than getting bogged down by day-to-day operations (Outsourcing Oasis).
The Benefits of Business Process Outsourcing:
1) Improved productivity:
Outsourcing allows a company to concentrate on its core strengths. On the other hand, putting aside one’s responsibilities to make more time available for other tasks improves the overall performance and productivity of the employees who are “not” involved in BPO (Watson, 2012). Business process outsourcing (BPO) services may outsource by companies that lack either the expertise or infrastructure required for certain activities
2) Improved quality:
Another benefit of business process outsourcing is improved quality. It includes improved accuracy and increased speed, which leads to greater customer satisfaction (Carr). Outsourcing can reduce errors by taking over processes performed incorrectly because of human error or trying to do too many things at once (CareerBuilder). One of the most significant advantages of business process outsourcing is that it can enable your organization to outsource essential, time-consuming processes without compromising quality. In an article, “The Benefits of Business Process Outsourcing,” author Robert Watson says that BPO makes it possible to focus on a company’s core competencies.
3) Costs savings:
According to a 2012 survey conducted by ConnectSolutions, a global leader in cloud-based contact center solutions, companies could save up to 30 percent by outsourcing their customer care and order management processes (Savitz).
4) Flexible staffing options:
A significant benefit to businesses considering outsourcing is flexibility in staff scheduling and employee allocation (Watson, 2012) because all BPO contracts should include service level agreements. (SLAs), which states the maximum number of hours a call center can expect to handle during a specific period; therefore, who can adjust an outsourcing company’s capacity at any time of the day or night to accommodate changing customer demands (Savitz).
5) Access to skills and expertise:
Businesses often lack in-house analytics, extensive data analysis, cloud computing, security, social media marketing, and more. In these cases, companies often need access to experts from outside their own business who have experience with these rapidly changing technologies. At the same time, expert knowledge may not be available internally due to some internal restructuring or no employees with the training required (Watson).
6) Streamlined operations:
Another benefit of business process outsourcing is streamlined operations. It includes improved processes and systems that are well documented, under control, efficient, and well managed (Carr), which must evaluate every step in the process to determine if it contributes to meeting corporate goals (CareerBuilder). It means eliminating unnecessary activities or hiring staff with special skills who can perform these functions for companies.
7) Increased productivity:
If employees are not overworked and given time to focus on important projects related to their core competencies, they will naturally become more productive (Watson). The fewer distractions a company has from its duties, the better equipped it can handle new challenges as they arise. Outsourcing enables a company’s agents to work more effectively because they do not need to switch back and forth between multiple tasks (Savitz).
8) Ability to outsource an entire process:
As Outsourcing Magazine states, companies that take advantage of business process outsourcing services can receive all the benefits of having a staff without hiring employees (Outsourcing Mag). BPO also makes it possible for companies to work with one vendor instead of several vendors, each providing different services. Lastly, having an in-house team is significantly more expensive than outsourcing due to overhead costs such as equipment, space, and supplies (Watson, 2012).
Conclusion:
When a company outsources its customer service, order management, or other business processes, it can benefit from many benefits. These include reduced costs, increased efficiency, and opportunities for growth by focusing on core competencies.
About the Author
Sarah has been writing for a decade and now for the online Quran classes UK Website. She obtained her Master’s degree at the University of London. Her main objective is to write insightful content for those people who read and like it.
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