Why BPO is The Fastest Growing Industry?
BPO has become the fastest growing industry in recent times. But in order to understand the reason behind that, we first have to understand what BPO actually is. BPO stands for Business Process Outsourcing. As the name suggests, through BPO, companies have the option to outsource any of their processes to other companies. The main businesses that are majorly outsourced are the back office jobs that include HR, accounting, IT services outsourcing, etc. This process of outsourcing different parts of their business to other companies is more common in various manufacturing industries. There are various reasons for doing this and some of those reasons are explained below.
A Higher Level Of Expertise:
One of the most common reasons for the outsourcing of various businesses is that the companies that offer such services have a higher level of expertise. The reason for that is the main focus of their services is by providing people with help. For example, if a company goes for IT outsourcing, they will hire the services of a company that specializes in IT services. Therefore, their expertise will be much better than if the company hires an employee themselves. That is why a large number of manufacturing companies prefer software outsourcing rather than hiring personnel for in-house software services.
Another major reason is that outsourcing gives a lot of financial benefits as well. This is because a lot of outsourcing companies will offer you better services at a much lower cost. Apart from that, you will also be saved from taxes and other expenditures like healthcare etc. for the employees. For example, if a manufacturing company instead of HR outsourcing, decides for in-house HR services, their expenditures will rise. They will have to hire additional staff, provide them with healthcare and other benefits like other employees, thus increasing the overall cost. That is why hiring outsourcing services is a much better and cheaper option.
Increased Focus On Services:
By hiring an outsourcing company for various services, the company gets a chance to focus on their products and key services. Therefore, by focusing on the core processes of the company and not spending time and resources for other departments, not only does their product gets better, but they also have time to implement new and better ideas. This, in turn, gives them a competitive advantage in the market.
Cover More Area:
With the help of BPO services, the manufacturers are able to cover a much larger area. For example, if a manufacturing company decides for going for call center outsourcing, it will not only be available to provide 24/7 customer service to all their clients, but it will also include bringing in more customers with the help of telephone marketing. Also, these services, if outsourced, will be much cheaper as compared to in house customer care department.
Another major industry where various BPO provider provides services in the area of quality assurance. This helps increase the quality of your product automatically. The main reason for the company providing quality assurance services will have no interest in the internal politics of the company. Apart from that, they will also be free of any interior pressure. Therefore, they will provide their services free from any kind of pressure from the senior management or even the production managers. Therefore, this will automatically improve the quality of your product.
Apart from a large number of benefits of hiring companies for BPO solutions, there are also a large number of risks involved. Some of those risks are
Breaches Of Security:
Apart from offering a better quality of services, process outsourcing also creates an additional point where there is a chance of security breach. Therefore, the companies will need to be extra careful while drafting the contract and when sharing the information with the outsourcing company.
Another large risk involved with IT outsourcing services or other types of outsourcing is that it presents a large number of problems which might result due to any lapses of communication. Apart from just communication, there can also be some cultural differences due to which the service provider might not be able to provide the services as expected by the hiring company.
Another main risk involved with hiring external service providers for various parts of the business increases the dependence on the service provider. Due to this overdependence, service providers can try to manipulate or blackmail the parent company. This becomes a major issue during critical times when companies cannot afford to hire someone else for outsourcing services.
Disruption Of Various Processes:
Hiring a third-party contractor to provide outsourcing services increases the disruption in the workplace as well. The organization will also need to give proper consideration while hiring outsourcing and decide on a proper set of SOP’s that will be in place when third party contractors or services enter their workplace. Therefore, it might also take a lot of time and additional resources for managing the services.
Therefore, whenever you are going to hire BPO services from any company, you must need to consider all these drawbacks as well.
InnoTechSol is a leading name in the BPO industry. We provide expert outsourcing services such as IT outsourcing, Quality Assurance, Marketing, Sales, and various other offshore outsourcing services. Our team is qualified and experienced in their specific genres. We have had the pleasure of providing outsourcing services to some major names that include Samsung, Nasscom, and skype. The six parts of our business cycle that make us an exceptional service provider are
- Advanced capabilities
- Exceptional services
- Meaningful guidance
- Personalized approach
- Ethics and
Therefore, if you are ever in the need for BPO services, you don’t have to go anywhere. Just get in touch with us through our website or by contacting us and we will provide you with the best BPO services. We can also provide you with a quick estimate for our services all over the UK and the USA through our website.