In the business world, outsourcing services to improve internal processes is very common. In fact, the aim is to speed up tasks that the company might not perform properly because it is not specialized in them or because it lacks the relevant technologies and infrastructure. This is known as Business Process Outsourcing ( BPO) , a strategy that is increasingly adopted by medium and large companies. In this post, we tell you more about it.
Business Process Outsourcing (BPO) is a practice whereby tasks or operations are outsourced in order to optimize internal resources while focusing on the main focus of the organization’s activities.
This is a strategy that uses an external provider – or several – that presents itself as a specialized company, that becomes the executor of BPO services usually associated with customer service, technical support, human resources, technological services (web, SEO, cloud, etc.) and other processes, whether commercial or operational.
With this, those who enjoy services of this type can focus their actions towards better management of administration and finances, which allows companies to reduce costs, improve the quality of services and adapt to the market more quickly.
BPO is classified into two main types depending on the nature of the outsourced functions: front office and back office.
This type of outsourcing allows companies to externalize processes related to the direct management of users and consumers. While customer service is the basis of this BPO service, so are technical support and sales, especially through digital and telephone means. But why turn to external companies in this field? The answer is simple: these companies have specialized professionals and teams to provide optimized, efficient and timely services in terms of customer service. In addition, in certain cases, these services can be offered uninterruptedly 24 hours a day throughout the week. We must not forget that other areas of outsourcing are marketing and help desk.
Back office, in turn, is understood as the outsourcing of internal functions. What do they consist of? They are usually related to human resources, whose tasks focus on managing payroll and recruitment. Likewise, many companies turn to this type of BPO service to speed up data processing. In this sense, by relying on providers of this type, costs are reduced and advanced technologies are applied that would be very expensive to acquire and implement. In this way, these are administrative tasks. The main advantage of this service is the optimization of communication and internal processes.
Business Process Outsourcing offers multiple benefits that boost the competitiveness and efficiency of companies.
BPO services allow companies to significantly reduce their operating costs. In fact, by outsourcing processes, organizations avoid investing in infrastructure, technology or additional staff , which could mean large sums of money in the medium and long term. Companies can thus focus on their value-generating operations, which improves reputation, profitability and competitiveness in the market.
Business Process Outsourcing (BPO) also ensures that products and services are of the highest quality. Thanks to improved operations, as we will see later, the performance of production processes is increased. One of the main characteristics of a successful company is, following this, precision and accuracy in ensuring the quality of what is offered on the market. Quality standards are therefore essential.
As anticipated, BPO services contribute to the optimization of internal operations. By delegating various types of tasks, both internal and client management, the company can concentrate on its market strategies, product improvement, creation of new offers and expansion into new areas , both national and international. This favors the creation of more and better responses to unusual market changes.
The services offered to clients, users and consumers are also optimized through the application of process outsourcing. As seen, customer service (see the chatbots that many companies implement in this field), technical support, resolution of complaints and claims, as well as incident follow-up, result in greater customer satisfaction. A satisfied customer helps create greater opportunities for loyalty and retention.
Despite its numerous advantages, Business Process Outsourcing (BPO) has some drawbacks that companies should consider.
One of the main risks associated with the application of BPO services is the possible vulnerability in the privacy and confidentiality of the contracting company’s data. This is because outsourcing involves, in itself, the transfer of sensitive information to external providers, which can expose it to attacks by cybercriminals or possible data leaks. Hence the importance of establishing contracts with companies that comply with robust and strict data protection protocols.
Process outsourcing can also present the difficulty of investing in training the supplier’s teams. While this is essential for specialized companies to offer a better service, this process can be very costly and time-consuming, which could delay some tasks necessary for the functionality and success of the company. In addition, it postpones the enjoyment of the benefits of outsourcing.
One problem that plagues many companies cannot be left unmentioned: dependence on third parties. What happens if the supplier fails? Partnerships and subcontracting with solid companies are required to guarantee the continuity of operations. When these do not meet agreed standards or face internal problems, the contracting company could experience interruptions, which would result in economic losses and impact on the market.