Business Process Outsourcing – The Solution to Your Company’s Services

1. Business Process Outsourcing – The Solution to Your Company’s Services Do you have tasks that you would like another company to carry out for you? Or do you want to make more time for your employees to work in other tasks that will make you meet your desired target or goal? Business process outsourcing is not as easy as you think. One wrong move will in the business world cost you a great deal. The good news is that in this article we are going to understand: •What Business Process Outsourcing is •Merits and demerits of BPO •How Intelligent Process Automation is linked to Business Process Outsourcing Keep reading to find out more. Business Process Outsourcing Business Process Outsourcing or simply, BPO is the practice where one institution or organization hires another organization to carry out processes which the hiring institution or organization needs to operate successfully. The manufacturing industry has majorly used BPO. These manufacturing industries mainly hire other organizations or companies to take care of other specific processes within their company. Over time, other industries as well have adopted the use of business process outsourcing The main reason as to why BPO is used by organizations is because of two reasons: •Front office functions •Back office functions 1. Front office functions The front office, concerning the BPO, offers services that are customer-based, like, help desks, telemarketing, and customer service centers. This front office also includes functions like customer relations, sales, and marketing, among others. The main advantage with front office BPO is that it enables hiring organizations to save time, labor, and operation costs. Many organizations fail to have excellent customer services but are well skilled in expertise and development.

2. By hiring other companies or organizations to handle their front office functions that are hard for the hiring organization to manage, these organizations (hiring) realize their strengths and benefits at customer satisfaction as they focus on what they are good at doing. 2. Back office functions Back-office functions are also known as internal business functions, and they include major business functions like quality assurance, accounting, and human resources. The good thing about back-office transactions is that the outsourced organization offers: Data security and confidentiality to enforce integrity, authenticity, and accessibility of customer data and employee data, assured data accuracy, top talent human resources, and uninterrupted operation time- top back-office BPO vendors run 24 hours a day seven days a week. How Business Process Outsourcing Works Many startup companies decide to outsource business processes. They mostly require both back office and front office functions as they lack the skilled human resources and resources to perform their tasks in-house. Also, a well-established organization may decide to outsource a service as they may have concluded that there is an outsourced provider who can be more efficient than them. This happens after management experts have advised a company’s executives about one or several identified business functions that the company can outsource. The evaluation takes place by examining the pros and cons of outsourcing a function. If the pros outweigh the cons, then the organization must go through another process of identifying the best service vendor for maximum results and also moving the task to the external service provider from in-house without making the process hectic. The change from in-house to external without being streamlined can be difficult, as it involves a change in management and staff too. Also, the organization's finances are altered as some people may lose their jobs, taxation from the government, and reporting requirements. Also, the technological investment will have to be made by the hiring organization to make the workflow smooth to the outsourcing organization.

3. Intelligent Process Automation and BPO Now, consider the phrase, the lesser the mess, the lesser the stress. By automating your business outsourcing processes, you will most certainly impress your customers by exceeding your customers' expectations. By automating your BPO, you make your company more efficient and lessen the stress required to shift from in-house services to outsourced services. Automation frees your staff from dull, repetitive, and tiresome works and makes them focus on quality service delivery. Process automation in BPO helps you focus on delivering your services, whereas automation makes the delivery efficient and quick. Efficiency is possible as mundane tasks are taken care of automatically. Also, through intelligent automation of business outsourcing, you can create a smooth transition of customer records from providing them in-house to delivering them from the outsourcing service provider. The best part about automating a business outsourcing process is that it becomes cheaper. This is because you have virtual workers who work 24/7 delivering quality and accurate data at a viable cost as you do not have to pay the virtual workers; you only pay the outsourcing organization. Advantages of Business Process Outsourcing Check this out: The only reason why organizations may want to engage in business process outsourcing is that they expect to be profitable from the whole process. BPO has financial benefits where the outsourcing service provider delivers services in a better way than the hiring organization would provide. They thus can have monetary gains such as increment clients, tax savings, etc. Hiring organizations also up their game by having a competitive advantage by allowing outsourcing organizations to help them handle tasks that they are not good at so that they can focus on their resources and operations, which will distinguish them in the market. Lastly, BPO providers carry out researches on different locations and the strength and weaknesses of each site. As such, these providers are in a better position to know about new developments that can improve service delivery in terms of cost, speed, and quality of work with the contract provider. Disadvantages of Business Process Outsourcing Since BPO has its advantages, we must also take into consideration its risks. Check them out:

4. First, security breaches are significant drawbacks in BPO as exploits occur during data transfer between service providers and the hiring organization. Once customers realize that there was a breach in their data, organizations will face permanent losses until the situation is corrected. Also, there is overdependence on the external service provider. Once an organization becomes tethered to the service provider, the hiring organization may find it difficult to go back to in- house service delivery once their relationships become challenged. Conclusion Business Process Outsourcing is the practice where one institution or organization hires another organization to carry out processes which the hiring institution or organization needs to operate successfully. The two main reasons why organizations use BPO are: •Front office functions - includes functions like customer relation, sales, and marketing, among others. •Back office functions - they include major business functions like quality assurance, accounting, and human resources. By automating your BPO, you make your company more efficient and lessen the stress required to shift from in-house services to outsourced services. The advantages of BPO are certainly more than the drawbacks; however, you should pay attention to your weaknesses so that you may emerge stronger and better. Choose your BPO service provider carefully; make sure you automate your processes. Remember, the lesser the mess, the lesser the stress.