BPO - How it Helps Your Business?
June 10, 2021
When companies determine that another, more specialized firm will manage business tasks faster than in-house, they opt to outsource them. Outsourcing is also more effective for businesses than staffing and training for in-house teams.
BPO service can also help businesses in mass recruitment by providing great quantities of qualified candidates in a short time.
A BPO provider can act as an extension of a company department, even sitting on site with the client to provide holistic solutions. For instance, a recruitment process outsourcing (RPO) provider can deliver the necessary staff, technology, and methodology needed to fulfil a client’s recruitment requirements. RPO can also help businesses in mass recruitment by providing great quantities of qualified candidates in a short time.
Types of BPO
BPO are generally categorized into two groups: Back office and front office outsourcing.
Outsourcing of back offices is the BPO type, which mostly addresses in-house business needs. Payroll, billing, purchasing, employment service and related activities are included. Meanwhile, outsourcing front office refers to the contacting activities, such as marketing and technological assistance, involving customer service.
Both forms of outsourcing can support your business. Depending on your particular preferences, choose the method of outsourcing that best benefits your corporation.
How BPO may affect your corporation
Managers may decide to outsource a business process in a number of ways. For example, startup businesses often have to outsource both back office and front office operations because they don’t have sufficient budget to develop internal employees and support functions on their own. However, a developed firm can decide to outsource a role which is proved to be better done, with lower cost by the outsourced partner.
Before conducting BPO, it is recommended that managers define tasks that are needed to be outsourced, then review pros and cons of outsourcing, to decide whether it makes business sense for the company to switch that job to an outsourced contractor.
BPO will definitely affect the company’s budget – not only in terms of expense transferring from internal and external suppliers, but also in terms of taxation and reporting standards.
Besides, the transition to an outsourced contractor typically affects employees, as well as current procedures and workflows. This involves substantial change in management.
Depending on the complexity of the role being outsourced and the sophistication of the systems in both companies, the corporation sometimes needs to invest in technological solutions to allow a seamless transfer of work from the company to the outsourcing provider.
At least in the coming years, the pattern of outsourcing business processes could be shifted, since companies are evaluating their partners not only on their expertise, but also on their digital capabilities.
Nowadays, robotic process automation (RPA) and artificial intelligence (AI) are able to manage most of oustsourced enterprise operations, which often execute these tasks more agile at lower cost. For example, the advanced, encrypted technology will enable RPO provider to support the corporation’s hiring function, such as mobile recruiting or match making between resumes received and jobs posted.
Thus, BPO or RPO providers are required to simplify and optimize their services to maintain appealing to businesses seeking the best approach for managing their functions.
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