Outsourcing BPO Services is the strategic decision by which a company transfers processes from its value chain, which do not represent the centre of its business, to an efficient supplier.
The integral outsourcing implies transferring to the outsourcer the responsibility of executing the management and evolution of the globality of the computer service identically: datacenter, distributed systems, communications, maintenance and development of applications and attention to users. The materialization of such an agreement implies a long maturation process, since, normally, it entails the transfer of ownership of computer assets and, in some cases, the transfer of professionals.
Outsourcing BPO Processes
So, the outsourcing of a business process ( BPO ) involves the outsourcing of the management for several areas or movement of an organization. Thus, hiring a professional provider, based on a multi-year bond. So, this agreement guarantees a quality of service from end to end service display. However, this entails a standard shift in consumers: give media management for the benefit of service level management.
The key to edifice outsourcing models helpful to both parties is to establish a relationship of trust, with high involvement of the provider in the provision of the service and with flexibility in the face of new requirements, capacity for evolution and anticipation of customer needs.
Thus, the major reward of BPO is the saving of money and an augment in the time to spotlight on the main industry.
Some other benefits of BPO include
- Increased speed and efficiency of outsourced business processes
- Organizations that use BPO gain access to the most advanced technology
- Freedom and flexibility to choose the most relevant services for the company’s operations
- Quick and accurate reports
- So, savings in resources related to staffing and training
However, the success of companies depends increasingly on their ability to develop horizontal business processes, and not in vertical integration. Thus, many times it is convenient not to spread efforts and concentrate on one or two main processes and allocate as many resources as possible to these processes. So, driven by these factors, investment in outsourced services has become an important part of corporate spending. Furthermore, these services can take several forms: from the use of contractors and temporary staff to the location of services, services for a specific project and outsourcing of business processes, where a third party assumes full responsibility for the administration of the outsourced process.
What does this mean for the BPO industry?
There are 5 keys that process outsourcing providers must perform to stay in business and address these threats:
- Focus on skills: hire, train and rehabilitate your workforce so that employees can ascend the value chain to positions such as data scientist, mathematician and actuary, and thus be able to offer customers higher-order capabilities.
- Deepen: work towards acquiring a deep knowledge of the specific industry that serves one so that customers know that they fully understand their business and that they can add value to it.
- Show confidence: show that you can offer your services by charging based on your client’s business results. Additionally, you are willing to take the risk of such a company.
- Leading the way: establish a deep technological capability and demonstrate that you can offer technology-based innovation on an ongoing basis.
- Accelerate: invest in areas that you know will differentiate your company in terms of speed, innovation and impact.
10 Reasons to outsource
Depending on the outsourcing model for which they bet (whether with an operational, advanced or strategic vision), these are the 10 reasons that move them to it:
- Access to resources of all kinds, knowledge and experience, which they do not have in their organizations.
- The need to create dynamic structures, flexible and adaptable to the changing environments of today.
- Be able to undertake new ways of doing business and providing services.
- Increase control over the activity, simplifying management, making operations more flexible and focusing on your core business.
- Have more time for strategic tasks and more added value for the business.
- Furthermore, continuous improvement of the level of service they provide, making it more efficient.
- The guarantee of availability and management of resources of all kinds at a predictable cost.
- Reduce costs.
- Transform the business to adapt to new growth models.
- Having a true partner to accompany you in time such as to solving your problems, directing outsourcing and follow up.
What are the most outsourced departments?
The two Departments that most request BPO services are Purchasing and Financial. So, what the Purchasing Departments request to outsource is limited to what is considered as an auxiliary, never the main activity.
We refer specifically to:
- Indirect purchases
- The optimization of outbound logistics.
- The digitalization of the purchasing department.
- The optimization of packaging.
- The renewal of the commercial fleet.
- The optimization of expenses, the establishment of a formal process of request and purchase of the needs of the company and the general cost savings.
- The internationalization of purchases and the opening of a purchasing office in a foreign country.
- The reduction of raw material supply costs, identify potential savings per purchase family and define sustainable organizational improvements over time.
- Facility Management optimization and maintenance, etc.
Moreover. the company profile that hires BPO services for the purchasing department is a mature company of any type of sector, which has been going through financial difficulties in the recent past.
Once this crisis has been overcome, he has decided to concentrate on his main business, looking for ways of improvement so that he not only helps them in the design of the strategy and the action plan to be followed to improve their business performance but also in its implementation.
However, the businesses look for complete BPO solutions, which cover a wide range of services from the most operational to the most strategic.
Among the most common situations that are going through companies that need BPO services by Purchases are:
- In mergers and acquisitions.
- Those that have internationalized and have peaks of work due to legal changes or projects.
- Those that need to optimize their indirect purchases, or those that temporarily require expert knowledge not available in your organization and also not required in the long term.
- So, growing SMEs or companies that enter business for the first time.
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