The BPO services and their roles in business
What is Bpo?
Bpo is a short abbreviation that when translated in full means ‘business process outsourcing.’ It is a process of hiring a third-party service provider to perform some business tasks and other specific responsibilities of a business. Such tasks may include; human resource, preparation of payrolls, particular accounting and many other services. Outsourcing has for a long time been associated with firms that deal with manufacturing processes. Companies opt for Bpo services as a mechanism of cutting down their operational costs. Most of the services that a company seeks to outsource are not very essential in determining its share of the market.
What are the major categories of services offered by Bpo?
Bpo projects offer two broad categories of outsourcing services. These are back-office outsourcing and front office outsourcing.
· Back office outsourcing is mainly concerned with internal functions of the business such as preparing of bills and making purchases. Its services are mainly aimed at assisting the business to take care of its data entry projects. These projects range from processing of payments, carrying out surveys and recording the relevant data, managing the data and provision of quality assurance services. Such roles greatly contribute to the smooth running of business activities.
· Front office outsourcing services enhance customer connectivity with the business. Every business strives to build long-lasting relationships with its clients and prospects. Front office outsources aims at strengthening these relationships. Most of its services are communication centered. They include phone calls, fax, emails and other means that connect business with its clients. The particular services provided by front office outsourcing include; telemarketing, customer care, inbound Bpo projects and market research.
What are the available outsourcing options?
Bpo options are available contracts both locally and internationally. Offshore outsourcing refers to the Bpo services that are hired from outside the country that a business is operating in. The services that are sourced from the nearest or neighboring country are referred to as near-shore outsourcing. On the other hand, most businesses seek outsourcing services within the countries that they are operating in. These type of services are referred to as onshore outsourcing. A business makes its decisions on the kind of Bpo to go for depending on its business needs.
Benefits of Bpo
One of the greatest yields a business gets from Bpo is cutting down its operational costs. The company also gets enough time to concentrate on its important activities that determine its place in the market share. The major benefits include;
· Increased speed and efficiency of the business. The outsourced processes reduce the burden of activities that the company needs to manage. As a result, the remaining company processes are attended to in the most efficient possible manner.
· Companies that offer Bpo services aims at delivering best services. Among the mechanisms that they use to deliver best services is incorporating the latest technology. Thus, businesses that outsource their services from these companies enjoy the latest technology that fully meets the consumer demands.
· A business is free to choose the relevant company to outsource its extended services. Businesses can also flexibly change outsourcing companies whenever a need arises. They, therefore, operate smoothly without any external dictation on which company to seek services.
· The business does not need to employ and train tipstaff to provide the outsourced services. Hence, it saves a lot of resources which could have been used to cater for staffing and training.
Limitations of BPO
Outsourcing business processes bear a lot of benefits to a business. However, the process may be marred by a lot of shortcomings which may include breaches related to the privacy of data. Outsourcing companies are working around the clock to ensure that they comply with data security policies.
Companies that provide outsourcing services sometimes underestimate the running costs of services. Such may result in conflicts when they later demand additional charges which were never captured in the initial agreements. The concerned companies have in the recent times tried to make as accurate estimates as possible to avoid such conflicts.
Businesses that outsource their processes entirely depend on those companies to deliver the services. They over-depend on such services and in case of failure, businesses find themselves in real problems.
Sometimes, there may be communicational issues between the business and the BPO service providers. This may result in delays in the completion of various business projects thus causing a lot of inconveniences.
The future of BPO in business marketing
Technology and globalization have completely altered the manner in which business is conducted. New business opportunities are ever being created in the international markets. Business Process Outsourcing is gaining prominence by day. Series of innovations have been witnessed in the BPO. New technology has been incorporated making the process to advance in terms of the service being provided.
As technology advances, businesses want to operate in the most efficient manner possible. The stiff competition in the business world has made every business to struggle to keep up with the fast pace. It is becoming essential to outsource some processes to prevent the business from being overwhelmed.
Bpo companies are offering more services to meet the rising demands. They offer Call Center franchise services, form filling projects, and other services to promote the growth of My BPO business. These outsourced services are becoming very popular in the business world.