Frequently Asked Questions
What is Business Process Outsourcing (BPO)?
Business Process Outsourcing (BPO) refers to engaging the services of an external provider to manage certain non-core yet critical processes of an organization. BPO services come under the larger outsourcing umbrella.
What is outsourcing?
Outsourcing is a strategic initiative that organizations take to employ external resources to conduct functions and run business processes that are both core and non-core activities and critical for business success. These functions or processes, which were traditionally handled by in-house resources, are delegated to an external party with specialized skills to perform them efficiently.
Who outsources?
In today’s global economy, many companies outsource business functions to reduce costs, create efficiency and add value to their business. Most industries outsource to some extent, but the most common ones are Information Technology, Financial Services, Communication (Telecoms), Consumer Goods/Service and Manufacturing.
Why is outsourcing needed?
Outsourcing comes into play when companies want to stay on the cutting edge in the market. To grow their business and increase their profitability, outsourcing has become a viable option for many companies. More than a means of just reducing costs, it has become a tool for creating and adding value to business, while allowing companies to have the ability to concentrate more on core functions and competencies. Furthermore, it helps management to re-configure business processes and provide the necessary information to assist effective decision-making and ensure quality and cost control.
What are the areas of expertise of leading BPO firms?
Top BPO firms have mastered the facets of different industries and have become experts in managing functions in different verticals. This deep knowledge base is hugely beneficial for their customers. The areas that BPO firms today should have a depth of know-how in are: banking and financial services, communications (telecoms), healthcare, insurance, shipping and logistics, manufacturing, retail and consumer products, travel and leisure and utilities and energy. Additionally, leading BPO firms provide cross-industry solutions such as: customer care, finance and accounting, procurement, legal services, human resources, research and analytics and transformation solutions.
What are the advantages of outsourcing?
Outsourcing carries with it many advantages for companies that engage with BPO firms.The top eight advantages that companies have access to are:
- Ability to focus on core activities
- Cost and efficiency savings
- Reduced overheads
- Operational control
- Staffing flexibility
- Continuity and risk management
- Transformation
- Innovation
How should I go about looking for an outsourcer?
After deciding to outsource certain functions of your business, you should keep the following in mind while looking for an outsourcer. You can take the help of consultants and advisory agencies for your search.
- Is the BPO service provider an expert in your ‘need area(s)’?
- What is the level of satisfaction of the BPO service provider’s current clientele?
- Is the BPO service provider’s business expanding?
- Is it a recognized entity within its own industry?
