Importance of BPOs
1.Cost Reduction:Outsourcing helps organizations cut costs and save money, and is one of the most important reasons for people opting to outsource their business process. BPO has given rise to a talented pool of employees available at low wages results in huge cost reductions, which in turn results in better revenues for the company
2.Availability of Experienced Professionals:Recruiting new employees and training them involves a lot of hassle and is a huge cost to the company. When the tasks are outsourced to an already established company with all the resources, the troubles of hiring and training is conveniently avoided
3.Ability to Focus on Core Business:Since a considerable chunk of the business is outsourced to a service provider, the top management of the company can focus their attention on core operational areas. This also leads to better employee productivity and helps them make better and more informed business decisions.
4.Excellent Source of Customer Feedback:Most BPO employees are in direct contact with the customers, as a result of which they are able to receive a first-hand feedback about products and services. This valuable feedback, in turn, helps the company to improve upon the services provided x
5.Access to the Latest Updated Technologies:Buying a licensed version of the latest software and other technologies is very expensive. This proposition is also risky, especially for small to medium-sized businesses who cannot afford to dedicate a steady budget to buying the latest technologies. Therefore, it becomes difficult for a company to stay updated with the latest developments. Outsourcing to companies that already have access to the technology and have the relevant expertise therefore proves to be more advantageous for global organizations.
6.Excellent Employment Opportunity:The BPO industry is one of the highest job providers in most countries. In fact, it is the ranked second in terms of the number of jobs created in some of the Asian countries. The remuneration provided to the employees is also one of the best in the industry, which is one of the major reasons for youngsters to work in BPO. The BPO industry has provided employment to a lot of talented youngsters and has single-handedly changed the GDP of various small countries.
7.Productivity improvement:BPO enables to the corporate executive to concentrate upon core business areas. Conventionally executives spend more time in management of details and they get very little time to formulate strategies. BPO saves time and helps the executives to explore new revenue areas, accelerate other projects and focus on their customers. This leads to improvement in the productivity. Better educated or skilled people perform the task efficiently and thus improve productivity.
8.Optimum utilisation of the resources:BPO enables optimum utilisation of resources of scarce resources. Outsourcing helps to capture new efficiencies and reallocate the resources. This increases the efficiency and productivity. Availability of skilled employees and adoption of sophisticated technologies leads to utilisation of resources and productivity.
9.Reduction in cost:Cost savings can be significant to any business. BPO not only helps in reducing cost but also increase productivity and raise revenue significantly. Cost reduction is possible through process improvements, reengineering, and use of technologies that reduce and bring administrative and other costs under control. Outsourcing helps the company maintain lower rates with better service solutions, thereby giving them a better market position and even a competitive advantage.
10.Improved Human Resource:Improved HR is another great advantage of outsourcing business processes. Cost effective manpower is yet another important factor of importance in BPO. Companies today, require productive and efficient human resource that can generate economies of scale. Due to outsourcing business can save Human resource cost, depending on their priorities. Outsourcing gives a company the ability to get access to skilled and trained man power at extremely low rates
11.Focus on core business areas:Efficient business strategy is essential to take the business to the top. Outsourcing enables the top management level to hand over critical but non-core activities of the business to the third party. This facilitates top management level to concentrate on the core activities.
6.Cater to changing customer demands:It is another great advantage of outsourcing the business processes. Many BPOs provide the management with flexible services to meet the customers’ changing requirements, and to support company acquisitions, consolidations, and joint ventures.
7.Sophisticated technology at lower cost:Technology is the leading area of outsourcing. It makes much of the work of modern organisation easy. Investing in new technology is very costly and often risky. As the technology market develops rapidly, it is difficult to keep pace with the latest innovations and solutions. Thus outsourcing to companies that have the resources, expertise and desire to continuously update their technological solutions.