Companies Outsource contracts in order to share some of its responsibilities to another company.
For example, a corporation may conclude that hiring IT engineers from another firm will be more efficient than hiring them as direct employees. Outsourcing has numerous benefits. Some of them will be discussed in this article but first let us understand what BPO is.
What is BPO?
BPO stands for business process outsourcing. It is the process in which companies outsource business processes to another company. The main goal is to cut costs, free up time, and focus on the important parts of the business. Front office and back office are two types of BPO.
Payroll, inventory purchasing, and billing are all things that happen inside a business. Back-office BPO deals with these things. Front-office BPO focuses on things that happen outside of the company, like marketing and customer service.
Why is BPO Beneficial?
BPO has a plethora of advantages. One of the key benefits is that it reduces costs. Performing a given work internally costs a specific amount of money. Outsourcing this job to an external entity, generally in a less cost-intensive country, can minimize these costs by lowering the overall cost of doing that job function. BPO also contributes to growth, particularly in terms of worldwide expansion.
If a firm wants to build an overseas office or operate in another country, working with a BPO provider that has experience in the local industry and knows the language is tremendously useful.
Mentioned below are four advantages of BPO
- Cost reduction
- Work done by trustworthy professionals
- Access to updated technologies
- Abundant employment opportunities
Interesting Stats about BPO
Although the global IT outsourcing revenue was unsteady earlier, in recent times, the market has become stable and reached almost 93 dollars last year. Let’s now check out a few interesting facts about the BPO industry.
- Almost 95% of organizations are embracing BPO by switching to cloud services
- Data security is perhaps one of the main challenges the BPO industry faces
- Business process outsourcing is expected to hit at least 400 billion dollars by 2027
Where Can I Find A BPO?
Does outsourcing seem like the best option for your business? If yes, you must look for the right company to do the job. Make sure to choose a company whose employees are experienced, punctual, capable of understanding your requirements, and have flexible engagement models. Each BPO may also specialize in a particular type of service or others may offer a wide variety of services you can outsource to.
10 Popular Jobs to Outsource
Outsourcing jobs has numerous advantages. We have discussed some of them earlier. Now let’s check out ten generally outsourced jobs
1. Customer Support
Customer support is one of the most popular outsourced services and includes a wide range of services that allow modern-day individuals to make proper and cost-effective utilization of a product. It involves assistance in planning, training, installation, troubleshooting, upgrading, disposal, and maintenance of a product. In the case of mobile phones, computers, televisions, and other electronic or mechanical goods, customer support is termed technical support.
The customer support team is a group of people who assist customers who are having problems with a company’s products or services. It all comes down to ensuring that consumers are successful in resolving whatever concerns they came looking for help with.
Although there are multiple approaches to please the customers, the below tips have helped company leaders deliver the best possible customer consistently.
- Have access to the right tools
- Provide self-service support choices
- Give complete authority to the staff
- Foster quick problem solving
By outsourcing customer support to a BPO, you can make sure that your company’s minor challenges and serious situations are managed without any hassle.
Outsourcing customer support also lets you choose the best experts in the field. The overall quality of customer support profoundly impacts the number of people who will return to your business. The devotion translates to plenty of word-of-mouth marketing and an excellent bottom line.
2. IT Support
IT support is a department or team in an organization that offers technical help to the individuals experiencing issues with their computer systems. IT support specialists generally utilize the following skills:
- Attention to detail
- Time management
The primary reason why organizations outsource IT support is in the hope of decreasing costs. Several entrepreneurs opt for offshore locations with affordable economies to save money on their salaries.
Another reason is to gain access to brand-new talent pools. This particular decision is usually made by organizations that are in dire need of IT experts. Outsourcing lets them use the knowledge and skills of remote developers.
Bookkeepers maintain a record of all sales and purchases in your business operations. On the other hand, Accountants take a subjective look at what the data collected means for your business. An accountant is believed to be a bookkeeper, but a bookkeeper cannot become an accountant without appropriate certification.
Below are a few typical bookkeeping tasks that a company needs:
- Recording monetary transactions
- Posting credits and debits
- Generating invoices
- Managing payroll
- Balancing accounts, ledgers, and subsidiaries
Outsourcing a business’s bookkeeping operations frees up time that you may put into enhancing your company. Backend office chores can be a great distraction, and having bookkeeping in-house can cause a conflict of interests.
Furthermore, you can save on the lost productivity expenditures that come along with appointing employees on the payroll. By outsourcing bookkeeping, you pay for only what you need.
Finally, yet importantly, outsourcing bookkeeping enables you to cut back or expand within a short period. Whether you are looking to grow your company or decrease spending, having a credible team lets you accomplish your goals in no time.
4. Virtual Assistance
Virtual assistants offer administrative services to clients while operating remotely from the client’s office. They can operate from homes as a freelance position or from offices of a BPO company.
Virtual assistants offer businesses a convenient alternative to fulfilling administrative demands without getting into the long-term commitment of hiring. Additionally, they work on a contractual basis, eliminating the extra burden in a seamless manner.
Outsourcing virtual assistants will provide your local team peace of mind by providing you relief from unnecessary tasks. This will escalate employee satisfaction to the greatest extent. Below are three steps that will let you understand what you must outsource to a virtual assistant:
- Chalk down everything
- Put each task into the category
- Find out each assistant’s zone of genius
5. Web Developer
Website developers utilize computer codes and software to create applications that run on the internet or on the corporate intranet. They must be skilled in programming and design to formulate visually appealing and functional websites. For those with a passion for technology and a creative skillset, a career in web development tends to provide the best of both worlds.
Below are considered the advantages of outsourcing website development:
- Cost optimization is believed to be the essential reason to outsource web development. Outsourcing was introduced to leverage cost management because of the economic dissimilarities among countries.
- Complex and huge web projects need high-level professionals that you may not find in your locality. It takes months to find an ideal candidate, which is quite common in the IT field. Think of the number of professionals that you can reach in your city. Now multiply by a hundred because that is the number of experienced and competent professionals you can get when hiring an outsourced team.
- With an in-house team, it gets difficult to stay competitive and updated. Because of fierce competition, an outsourced developer would have no choice but to stay ahead of the curve. In-house developers tend to have a narrower pool of talent and a higher staff-turnover.
- An outsourced team has abundant technologies and resources. The larger the network of an outsourced website development team is, the bigger ground of available technologies you encompass.
6. Web Designer
A website design creates the entire layout of a website. In simple terms, web designers help you make your business site look good and function without any hassle. They use various programs to develop different types of visual elements.
Web design is significant because it affects how your audience sees your brand. The impression you create on your audience can either get them to remain on the page and learn about your business or leave your page and check out a competitor. A great web design keeps the leads engaged for a prolonged period.
You can successfully concentrate on your essential competencies by outsourcing web design projects and encourage your workforce to excel. You get to invest all resources in developing services for which your organization is popular. Also, that leaves you enough time to strategize your growth.
Outsourcing the website design process lets you save the cost of appointing a team of resources and designers. According to the latest studies, about 55% of companies outsource their IT projects to save money. However, in the case of in-house designers, you have to take care of their training and make them thoroughly acquainted with the latest trends and tools. This ultimately escalates the expenses.
Outsourcing the web design functions can bring several values to your business. Remember that a company’s experience, agility, and feedback are factors you must consider before outsourcing your website design projects.
7. Data Entry Clerk
The data entry clerk types information into the systems and databases and creates reports, letters, and other documents.
Data entry allows modern-day companies to decrease the cost of operations by cutting back on infrastructure expenses. Systematic data entry also enhances confidentiality, which benefits company matters. Now let’s find out why entrepreneurs have been outsourcing data entry jobs.
The coronavirus outbreak in 2020 has changed the way organizations operate. If you do not wish your business to shut down in case of another pandemic; you must outsource all data entry activities immediately. Doing so would help businesses operate at full capacity.
You also successfully save money, time, and effort by outsourcing data entry. It also means that the resources you would have otherwise spent on data entry can be invested in the business’s fundamental activities instead.
If you appoint an in-house data entry team, it will reduce your attention and focus to the greatest extent. But when you outsource this service, your attention does not diverge, and it provides you complete liberty to stay focused on the chief role of your business. Third parties will be dealing with data entry while you can pay attention to the expansion and growth of your organization.
8. Marketing Specialist
Marketing specialists are responsible for an organization’s marketing communications. They aim to establish and improve the position of a company in the market, thus, supporting lead generations and sales. When appointing a marketing specialist, please make sure to look out for the following skills:
- Attention to detail
Mentioned are a few reasons why most companies nowadays decide to outsource marketing.
By outsourcing marketing, you are handing over your work to the professionals who have devoted a major portion of their lives to helping businesses succeed under all circumstances. From creating content to developing brand identity, designing a website, and improving media coverage – a reputed marketing agency can serve as a great extension of your team, taking your vision and converting it into reality.
An important advantage of outsourced marketing is gaining access to a team of proficient, experienced, and reliable marketing experts – usually at a much lower cost than a full-time employee. It saves the additional cost of continual professional development and the latest technology and tools.
Outsourcing the market to an external agency equips your company with the capacity to enhance its marketing activities in response to the new opportunities. This is an excellent benefit, given that 42% of B2B organizations believe that their current marketing procedures will not be able to meet the challenges in the next one to three years.
9. Content Writer
Content writers are creative professionals that develop a copy for websites, eBooks, blogs, whitepapers, social media, and other platforms. The writer works a business to comprehend their tone and find the optimal sources of information.
The benefits of content writing are quite difficult to overlook. You have probably rendered content writing services if you have sent a newsletter or even emails. However, as an organization intends to grow, the advantage of content writing can be observed only if you agree to use the services with caution. Here are a few ways content writing has proven useful:
- It enhances SEO
- It enhances sales
- It retains the viewers
- It allows you to reach larger segments of the population
If you wish to invest in content marketing but you do not have the expertise and time to create content, outsourcing content creation seems like the best way to go. You will have more time to work on other business strategies. You can also publish several contents within a short period. Outsourcing content is considered cheaper than appointing full-time writers.
Finally, yet importantly, outsourcing is a flexible option. You can hire as many writers as you want when you need more content. If you feel like a writer is not performing well or if you want to try a different tone, you can outsource the work to someone else.
Now there may be times when you do not wish to invest in content creation. There are also times when you want to produce as much content as possible. Outsourcing provides you with such sort of flexibility. You can scale back whenever you want and scale up the production seamlessly when the business grows.
Payroll experts usually manage and supervise all the aspects of your organization’s payroll. They handle a wide range of tasks, from collecting the bank deposit data to handling the paper checks, from maintaining precise records to keeping pace with taxation. Now, is outsourcing payroll a good idea?
Each business decision has merits and demerits, and outsourcing payroll is not different. Before collaborating with a full-time payroll provider, you need to ensure the vendor can meet all of your requirements and has a credible track record.
The employers outsource payroll if they:
- Lack of resources, technology, and personnel, to run the payroll efficiently
- Have been punished for late or wrong tax payments
- Are not able to keep up with the modified employment regulations
- Cannot meet recordkeeping or data security needs
Outsourcing payroll helps employers save money and time. Not having to spend a prolonged period on administrative tasks enables the employers to concentrate on business development initiatives and improve accuracy, preventing expensive penalties. Outsourcing also contributes to employee satisfaction.
The BPO or business process outsourcing industry has continued to grow astounding. Research has shown that it will be worth approximately 52 billion dollars globally by 2023. But it has a fair share of challenges. While BPO originally exerted immense pressure on domestic services that could never compete in cost, software automation aims to do the same with such services.
The professionals in the business who outsource will need to concentrate on quality while providing incredible value to the clients. Modern-day consumers have several choices, and so do the organizations that rely on BPO services.
Currently, the BPO sector feels quite transactional. The companies pay for different tasks, and the BPO company completes these tasks. However, great competition will call for high value. This means adopting transparency about how things are done and investing in building real-time relationships with the clients so that they do not look for alternatives.
There are multiple opportunities for the BPO companies that are eager to overcome and adapt. If they are willing to shift the operations to benefit from such opportunities, they will enjoy enhanced growth and more jobs.