Business Process Outsourcing (BPO) has become extremely popular among all types of industries these days, and not just because of the immense cost saving advantages it offers but also because of the innumerable ways it can do for the growth of your business. It’s not just important for the producers and sellers but the customers are also becoming aware of how several products and services can be improved multiple times because an external company is handling the customer service or delivery, for instance. Around the turn of the century, BPO industry used to be approximately $7 billion. Within a decade and a half, now it has grown to $120 billion. Let’s look at what is making BPO so popular and how you can benefit from these advantages to grow your own business as well.
Focus Improvement on Revenue Generation
When we say they don’t mix, we don’t mean that “you cannot” take our money from your business for your personal expenses. We are saying “you shouldn’t”. It might appear very convenient to just use one bank account or one credit card for all your daily expenditures, but this one convenience holds the possibility of an utter disaster for your business finances. In layman’s terms, you shouldn’t be spending your revenues rather you should only be spending your profits. However, if you won’t keep the transactions separate, you might not even realize that you spent your precious business finances on a very expensive and not so delicious lunch.
Don’t Leave Things to Guesswork
The most direct way to increase growth is through generating more revenues, and if you are trying to handle everything in your business on your own, there is only so much time you have to improve on the segments that directly generate to your revenues. However, if you let external experts handle the accounting, payrolls, and other such area, you will have a lot more time, attention, as well as more spare money to improve your products, meet more potential clients, attend more seminars and conferences, and even generate better operational ideas.
This is the other end of the spectrum, where on one end you will improve revenues, and on the other hand you reduce your costs. Let’s take an example of managing financials and accounting. You would need an accounting department, where you would hire accounting and finance experts, who would also have to be well versed in legal requirements as well. All this will grant you all the control you may want, but will also cost you an arm and a leg. However, with a BPO company you will get much better service and at a lower cost and save for adding to your growing segments.
Better and More Useful Feedback
BPO companies deal with several different companies and industries, which mean they are much more qualified in understanding consumers’ needs and expectations of your products and services. They also have trained professionals for dealing with customers and also collecting and interpreting their response data. When you have experienced people dealing with your customers, you get so much more valuable feedback which you can then translate into your marketing strategies and product improvement, thereby leading to real and consistent growth.
Highly Experienced Professionals
Just as it does with customer service, outsourcing companies are focused on hiring employees specifically for different departments with appropriate experience and qualifications. You can do that too, but it will cost you a lot more to have an entire team in-house than simply hiring one from a BPO company. The distinguishing factor here is that, those segments that might be auxiliary for you and do not directly contribute to your revenues are in fact the core segments for BPO companies. They not only have more reason, but also more experience in choosing the top employees for those jobs. If you wish to have the highest skills and that too on a budget use the benefit of outsourcing.
Technology is Better with BPOs Too
As has been mentioned before, should you choose to hire the services of a BPO company you will not only get the best of the talent but also the best of technology. Technical capabilities are as much a priority for outsourcing companies as their employees. For the businesses, it is no less than a blessing to gain access to the top technology without having to spend on buying it all. Technology does not just have the initial capital cost, but also running and maintenance plus the constant upgrading and the risk of becoming obsolete. Why not let the BPO companies take care of it while you manage to compete with the bigger companies just because you can?
Higher Predictability and Flexibility
Now that professionals and technology is taken care of, let’s move to operational processes. If you have all your production and distribution capacity in-house, then you can have one of the two options – either have enough extra capacity to make sure that you can accurately predict the amount of business and orders you can process, or you can have set capacity and no extra costs but the constant risk of losing out on seasonal growth opportunities. With an outsourcing company’s staff on board, however, you get to save on all costs that spare capacity might incur for you, while you can also be at peace to know that you can always expand or reduce your production and supply as and when the market demands. This allows you to capitalize on every growth opportunity that comes your way without any extra capital investments.