This guide outlines how BPO services can improve how your business runs for more efficiency.
Outsourcing labor to other countries is more popular than ever, partly thanks to BPO (business process outsourcing) services. BPO companies excel at connecting businesses with skilled workers around the world, no matter the industry or position.
This is most often done when a business needs a workforce that’s trained for a specialized task, like handling financials or payroll. It’s always possible to do this from scratch, of course, but outsourcing the task can be much more efficient and cost-effective.
It’s important to find a BPO service that focuses on quality as well as quantity. It’s easy to find inexpensive labor overseas, but finding trained, highly skilled workers may not be so easy. Companies like Tier One Outsourcing help businesses outsource to skilled overseas employees, which is the key to success when using international workers. The right BPO companies will only contract with the best workers available, and will also take care of management and training.
Benefits of BPO services
It isn’t that hard to understand why cheaper labor will save money compared to more expensive salaries; however, there are a few other benefits to using BPO services besides just the obvious cost savings.
You’ll have instant access to skill and expertise
As mentioned above, outsourcing via BPO services can connect your business with highly skilled workers. This is especially helpful for small or medium-sized businesses that may need assistance with technical processes.
From HR departments, to accounting, to code developing, it’s possible to hand over all kinds of complicated tasks to people who already know exactly how to handle them. If these tasks are being outsourced, there’s no need to try to learn the complexities of business functions that aren’t relevant to the core of a business. This frees up time and money to spend on more important matters, and leaves the technical details to the experts.
Another aspect of this particular benefit is that there’s no need to spend time on training – the business can take advantage of their skills pretty much immediately. Once again, this saves both time and money, both in the short- and the long-term.
You’ll have more time to spend on core business functions
Every business has a certain amount of money to work with, and a certain number of man-hours that can be spent on growing the company. The question is, how is that money and time going to be spent – will it be focused on core business functions, or will it be used for more generalized tasks as well?
This is the type of question that businesses in every industry ask themselves, and for some, the answer is that generalized tasks should be delegated through outsourcing.
Consider a hypothetical example of a small startup company. The bulk of the work is done by the founder, which means he’s responsible for the big picture as well as the small details. Eventually, he realizes that he just can’t continue calculating payroll by hand when he has a growing business to run. He hires an accountant, who specializes in that field of work.
This gives his business the advantage of the accountant’s expertise, and frees up multiple hours per month. Now he has more time to spend solidifying future business plans, working on getting more sales, building professional connections, and more – all because he hired an accountant. Now imagine that happening on a much larger scale, and that’s what outsourcing can do for businesses of all descriptions.
Your business will operate with greater efficiency
Many people don’t realize just how much time is wasted when employees try to complete tasks that they aren’t really qualified for. They may have to spend a lot of time figuring out what they’re doing in the first place, and they’ll probably have to go back and correct mistakes as well (assuming the mistakes get caught).
Outsourced labor, on the other hand, provides skilled workers who already know exactly what they’re doing. This takes a significant burden off of employees who don’t have the proper skills, and gives it to the ones who specialize in certain tasks. This improves the accuracy and quality of the work being done, which in turn increases productivity.
You’ll free up more time for employees
Most jobs involve a certain amount of digital drudgery, or repetitive tasks that are almost definitely not a good use of employees’ time. However, many of these tasks can be outsourced through BPO services, which will streamline workflows across the board. This has a direct impact on not only efficiency, but also cost efficiency.
Let’s say that the average employee at a business is getting paid $30/hour for supposedly skilled tasks, but 20% of their time is spent on things that could be done for $12/hour, even without outsourcing. This means that for 20% of each day, the business is paying someone $30/hour when they could be paying someone else $12/hour or less.
Now let’s assume that most employees are doing this (which is usually true), and it’s easy to see the problem. By contracting with a BPO company to take care of the busy work, employees can give greater attention to the tasks that really matter.
You’ll save money
Along with the indirect ways in which outsourcing labor can save money, there’s also the simple fact that international labor often costs less. Depending on which country the work is being outsourced to, this could be between 50% and 90% less compared to your own country’s labor costs. Even with the lower wages, though, there’s no sacrifice in quality.
Plus, most BPO companies specifically hire people who speak English and are already skilled in a particular niche. This helps them quickly integrate with your business processes, and start producing results almost immediately.
The takeaway
BPO services can have a huge impact on just about any business, whether they’re providing staff for an entire HR department, or just a couple of specialized web developers. There are many benefits to using a BPO company; cost savings is the most obvious one, but there are others that can also help lead to long-term growth for businesses in any industry.