Business Process Outsourcing (BPO) has increased in popularity over the years not only because of its ability to reduce costs substantially but also because of the competitive advantages, productivity and efficiency improvements, and contributions otherwise in ensuring smooth operations. From Fortune 500 companies to start-ups, both big and small companies have realized the advantages of outsourcing in making their business rise up in their industries. In today’s article, we will discuss some of the ways outsourcing can help you achieve that for your company as well. There is a three-tier planning process that goes before you hire an external partner, which then helps you in a three-fold way in your business growth.
Plan Your Objectives
Before you may opt to choose to outsource and decide which segments in your business would benefit most by it, you need to outline your outsourcing objectives. The goals that you wish to achieve from outsourcing should align with your overall business goals if you wish to gain maximum benefits from BPO companies. For instance, if your primary aim is to reduce costs, you should be outsourcing those segments that are creating the biggest cost burden on your finances. However, if you wish to rise up in your industry based on the technical capabilities then you should be opting for outsourcing your technical intensive segments.
Consolidate and Centralize Your Infrastructure
The second most important thing you should be doing before going for an outsourcing partner is to ensure that there is coordination within your different departments. No amount of external help will get you the growth and profitability if there is repetition of work or research, other types of time wastage, or general lack of communication within your departments. Secondly, you need to be aware of the fact that once you get another company on board, there is a real possibility that you might face fragmentation in your company or you might have to displace some excellent people within your company from one department to another. So be prepared for all this before opting for a BPO company.
Keep track of your key performance indicators
Once you have made all preparations within your company and planned your objectives from hiring a BPO company, the final part is to keep a check on maintaining cohesion between your in-house work and outsourcing company’s performance. You will need to put in deliberate metrics for keeping the records to ensure consistent productivity, efficiency as well as comparable quality in performance. Some of the KPIs that you can use to keep a check would be increased in revenues, customer responses, end-user productivity, or simply IT-related errors going down or not.
Now let’s move to the ways in which outsourcing itself has the potential to help you rise up in your industry.
This is the most obvious and the strongest advantage that outsourcing brings. The interesting part is that cost savings not only mean more spare resources for other segments than the ones outsourced, but it also means better cost management without having to compromise on the quality of your business. You might have outsourced the segments that lie out of your core gambit, but for these BPO companies, those are their very core segments. This means they have better technology, better human resources, as well as better operational knowledge to perform those tasks. More on this last point in the next section.
Better industry insights
Perhaps the biggest advantage of outsourcing, for growth, is the invaluable data and information that outsourcing companies bring into fold. These companies are dealing with businesses of large and small size and operate in more than one location, all of which brings them the secrets of industries, better sense of capitalizing on growth opportunities, as well as staying up to date on innovations and changing business trends. So just by having an outsourcing partner on board can help you open doors to a lot of useful information that can propel you into growth.
Scalability and flexibility
Once the costs are covered and you have brought all the needed tools of knowledge and skills on board with a BPO partner, the next step is to consider how the utilization of these resources can help you in growing. One of the biggest challenges for smaller and medium-sized businesses is to stay in line with the business cycles. For instance, now with the Covid-19 crisis, many businesses need to scale down and perhaps also fire employees and shut down operation centers. However, those businesses that have had BPO companies on board would find it much less difficult to scale down or scale up if their business is of that sort of nature. The point is that with a BPO company working with you based on the timely needs of your business, there is much less pressure on your finances and operations and a lot more flexibility.