|
| |
BPO (Business Process Outsourcing) involves business process management and outsourcing. Business process management uses technology aimed at redesigning the process, reduce unnecessary steps, and remove redundancies. On the other hand outsourcing uses expertise and resources of dedicated outside service providers to perform many of these vital yet non-core activities. BPO performs both the functions at the same time, thereby speeding implementation and ensuring that the intended benefits really hit the bottom line.
|
|
|
What is a Contact Centre? |
|
| |
A call centre that has the capability to collectively handle letters, faxes, and e-mails at one location is known as a contact centre. A call centre is operated by a company to administer incoming product or service support, sales, or information inquiries from consumers. Outgoing calls for services such as telemarketing, logistics support, and debt collection are also supported.
|
|
|
What are the most common Benefits Derived from BPO? |
|
| |
| Productivity Improvements |
|
An important facet of business process outsourcing is its ability to free corporate executives from some of their day-to-day process management responsibilities. Conventionally, executives spend 80 percent of their time in management of details and only 20 percent on formulating strategies. But the scenario is remarkably different when the business process is outsourced. Once a process is successfully outsourced, the ratio can be easily reversed. In such situations, executives get more time. This saved time helps them tremendously to explore new revenue areas, develope other projects and focus on their customers. This, beyond doubt, leads to productivity. |
| Cost Savings |
| One of the most important benefits and advantages of outsourcing the business processes is in terms of cost savings. The companies that outsource their work save on fixed costs and capital investments such as rent and IT equipment, as well as several variable expenses. This means that you can scale your business quickly and easily without having to make capital investments. Companies that outsource parts of their operations have access to the best talent and expertise in the BPO field and that too at low wages. This allows them to invest in strategic resources while cutting back on administrative cost. |
| Focus on Core Business |
The most important factor behind the growth in the BPO market world wide today is an increase in the number of enterprises that are reviewing their internal operations in an attempt to focus on their core competencies. Business Process Outsourcing gives more freedom to management to focus more time, energy, and resources on building the company's core businesses.
Once outsourcing of certain processes takes place it becomes easier for the company to compare and evaluate the efficiency and effectiveness of services that are being delivered from outside. |
| Benefits at a Glance |
| Cost reductions Cost reduction is done through process improvements, reengineering and use of technologies that reduce and bring administrative and other costs under control.
Concentration on core business With the day-to-day back office operations taken care of, management is free to concentrate more on the core business of the company.
Outside expertise Company is saved from the hassles of recruiting and training personnel. BPOs ensure that experts from another company provide the needed skills.
Cater to changing customer demands It is another great advantage of out sourcing the business processes. Many BPOs provide management with flexible and scalable services to meet the customers' needs, and to support company acquisitions, consolidations, and joint ventures.
Revenue increase As stated above, by outsourcing non-core processes, companies can concentrate on increasing their sales and market share, develop new products; spread out into new markets and increase customer service and satisfaction. |
|
|
