The concept of business process outsourcing started taking shape in the 1990s, with US companies deciding to outsource some projects to companies in India and the Philippines. The following years saw a rapid rise in the business process outsourcing industry. The BPO service industry currently stands at $254.91 billion in 2021 and is expected to touch $261.9 billion by the end of 2022, according to Grand View Research.
Business process outsourcing primarily involves hiring a third-party expert vendor to execute a specific process or processes for the organization. Organizations typically outsource functions like accounting, data entry, software development, social media marketing, customer service, etc. Companies of all sizes – from small and medium-sized companies to Fortune 500 companies – rely on business process outsourcing to handle business operations efficiently.
Why use Business Process Outsourcing?
Businesses use BPO services for various reasons; streamlining business operations is the most important among them. Here are some key advantages of business process outsourcing:
Increased Cost Efficiency
BPO helps a company achieve better cost efficiency as the organization does not need to invest in hiring a team, setting up the infrastructure, and managing other process-related costs. Additionally, the business process outsourcing company works with different clients in the same industry or across industries, helping them achieve economies of scale.
With the non-core tasks outsourced to a BPO service provider, the employees can work with increased productivity and a clear focus on the tasks at hand and expectations.
With an expert BPO service provider on your side, a better technological framework can be established in the outsourced processes. As the selected business process outsourcing company would have access to the best technical solutions, the organization could perform better with business process outsourcing.
Optimized Time Management
As employees are expected to handle the core processes that directly contribute to revenue and profitability, the organization can optimize the time spent on each task. It helps in achieving more in less time.
As BPO service providers are in touch with the changing security and compliance requirements, they can streamline business operations by minimizing the processes’ risks. Also, there is increased transparency in business operations with clear goals and deliverables for the business process outsourcing company.
How to use business process outsourcing to streamline business operations?
The process of streamlining business operations is an ongoing activity. A manager is expected to continuously invest time and resources to optimize the strategy for better efficiency and productivity.
Here is how you can use business process outsourcing to streamline business operations:
1. Assess the Current Processes
Before investing in BPO, assessing and understanding the current processes and workflows is a good practice. It will help you identify areas that need streamlining.
2. Rank Processes
Once you have been able to assess the current processes, you can identify workflows in completing the task and the involved overlap. You can then rank processes as per their importance for business success and get a roadmap for which tasks are to be streamlined first.
3. Analyze Outcomes
After you have ranked the processes, it is a good practice to analyze their outcomes. This will help you identify the business’ core and non-core processes, and you can designate the non-core processes list for outsourcing.
4. Ask For Feedback
Before outsourcing, it is a good idea to ask for employee feedback on outsourced processes involving workflows and expected benefits. It will bring focus and clarity to your business process outsourcing strategy.
5. Select The Outsourcing Partner
Now that you have been able to zero down on the processes to be outsourced, it is time to look for an ideal BPO service provider per your business requirements. You would need to assess various prospective partners on their capabilities and your needs.
6. Adjust And Refine
Once you have selected a business process outsourcing company, you should be open to adjusting and refining your BPO service strategy. For instance, after you have outsourced your customer service function, it is better to track KPIs like customer satisfaction score and feedback to adjust the strategy accordingly. It will help you achieve better efficiency and workflow as progress is made.
Opting for a BPO service provider can benefit your business in multiple ways. However, it would help if you used the tips mentioned above to have a transparent approach to streamlining business operations using business process outsourcing. It will lay a strong foundation for your BPO service strategy and help increase business efficiency and productivity.