Business process outsourcing is a rapidly expanding industry with a market share that’s expected to double in size within the next decade. You may be wondering what exactly business process outsourcing is and why it is rapidly gaining prominence.
Simply put, business process outsourcing, BPO for short, is a practice that involves hiring a third-party contractor to handle a company’s non-core business functions. The processes that are outsourced can range from marketing and public relations to customer experience and accounting. Typically, these processes are categorized as either front-office or back-office, with front-office processes being those that include direct contact with customers and clients (think customer support and sales) and back-office processes being those that include managerial and support roles (think administration and IT). While all of these are essential for business, they may not all be your company’s main focus. This is where Business Process Outsourcing comes in.
If you’ve made it this far, odds are you’re interested in discovering why business process outsourcing might be the right tactical move for your company. Partnering with a BPO has many advantages, but if you only take one thing away from this article, let it be this:
The expertise garnered through working with a large swath of clients is accentuated by the minimization in operational overhead, improved efficiency, expansive sources, and the value added to your company by the BPO. These four macro benefits are comprised of micro benefits which work in tandem with one another to bring about a desired goal.
Minimized Operational Overhead
1. Reduced Labor Costs
One of the first reasons you should consider outsourcing non-core functions to a BPO company is the reduction in labor costs. The average cost of employing a customer service specialist in the US is just shy of $50,000 per year. After accounting for the number of professionals you need on your customer service team, the costs quickly begin to add up. Outsourcing allows you to get the results of a full customer service team without the overhead cost of directly employing one.
2. Reduced Infrastructure Costs
Setting up the infrastructure for a department is not a cheap endeavor. The hardware and software alone can cost several thousand dollars per workstation. As if the cost of setting up a workstation wasn’t enough, the ever changing nature of technology means that as the quality of hardware and software increases, the price inevitably increases with it. Fortunately, by outsourcing to a BPO, you can forgo paying in full for the expensive equipment and simply pay for the services you need fulfilled. We take care of the equipment costs, so you don’t have to.
Another budget-saving advantage of partnering with a business process outsourcing company is being able to pay only for the services required at a specific time. When you directly employ a specialist, there’s a commitment to pay their salary and benefits throughout the year regardless of the workload they’re handling. Even though there are benefits to having a dedicated customer experience specialist in-house, it’s not always the most cost-effective option. Business process outsourcing instead allows you to pay for a specified amount of work over a specific period of time in which you’re able to increase and decrease the amount of work outsourced to fit your needs during peak or off-peak seasons. This strategy maximizes the value of every dollar budgeted for customer experience.
4. No In-House Hiring Or Training
The cost of hiring in-house customer experience specialists starts adding up before a specialist is even hired. We all know that time is money, and hiring the right person for the job can take a significant amount of time. But it doesn’t stop there: the probation period can be even more expensive as you train new hires who might end up being a poor fit for your company. The worst part of this experience is the fact that it’s impossible to predict how long this cycle might repeat itself. Outsourcing allows you to avoid this hiring and training processes so you can immediately spend your budget on its intended purpose instead.
5. Advanced Insights
How do you quantify and qualify your company’s success? This is one question every company faces. No matter what aspect of your business you want to improve, simply collecting data isn’t enough—you need methods to interpret the data. Partnering with a BPO that specializes in a particular industry will give you more informed insights and precise reports which in turn will allow you to improve and grow your business.
6. You Save Time
I’ve said it before, and I will say it again: time is money. This is why it makes sense to ensure you and your employees are spending time handling your company’s core functions by outsourcing your non-core functions. BPO companies have teams who are specialized in handling various processes that are not core functions for other businesses. By partnering with a BPO specialized in the process you need fulfilled, you can free up company time that would be spent on non-core functions. This way, your company spends more time completing its core objectives and functions, and BPO companies take care of the rest.
7. 24 Hour Customer Care
If you’re part of a business-to-consumer company looking to outsource its customer experience, customer experience BPOs who have offices in various parts of the world offer an exponentially valuable resource: 24 customer service. If your customer experience team is in-house and solely based in the U.S.A., then there are 16 hours every day that customers are not being helped. Partnering with a multinational company that works in various time zones will deter customers and clients from turning to your competitors. For this reason, outsourcing can be a great step when growing into a multinational business.
8. Expedient service
When non-core functions stay in-house, the risk of these tasks being forgotten about or kicked down the road is ever present. When an important non-core function like customer experience is not an employee’s top priority, it’s the customers that suffer. However, when you partner with a business process outsourcing company that specializes in a particular field, you begin to see greater turnaround because such tasks are their sole focus. This means faster and more efficient service, which translates into happy, repeat customers.
9. Global Expansion
Many BPOs are multinational and have offices in various nations across the globe. These companies also have incentives to hire professionals native to those nations due to their intricate understanding of the local markets. If your company plans on expanding to reach diverse global markets, partnering with a BPO company with offices in those markets will allow you to gain insight into the specific needs and wants of potential customers and clients within those nations. Receiving feedback from individuals who understand their local markets is invaluable and will ultimately make your company’s expansion that much easier.
Not only is hiring individual employees to perform specific tasks time-consuming and costly, but a single specialist is not always properly equipped to handle all aspects required in a given field. For instance, a marketing professional is not going to have a full understanding of public relations work and vice versa. This means employees either end up performing tasks that they are not specialized in, or another employee, or team of employees, need to be hired to carry out those tasks. BPO companies, however, employ a variety of specialists capable of performing the various tasks their clients need, saving you time and money.
11. Larger Talent Pool
Another major advantage of partnering with a business process outsourcing company is the larger talent pool you gain access to. A BPO company that specializes in customer experience will have more high-level customer experience specialists simply because that’s the nature of their business. This is one reason why Fortune 500 companies partner with BPO companies (which also means you can have access to the same talent that handles their customer experience as well).
12. You Gain A Competitive Edge
I’ve already explained that bypassing the hiring and training processes by partnering with a BPO can save you time and money, but it also gives you a competitive edge. Think about it: while your competitors are spending their time and resources building an in-house team to handle non-core operations, you can already have a professional company handling those processes for you. Less time wasted on set up, more time spent on gaining a larger market share.
13. External Ideas
Another great advantage of outsourcing your business’s non-core functions is generating new ideas. Every business establishes procedures and processes that have worked, and there can be a reluctance to change these things that have done well in the past. A BPO, however, isn’t only going to bring fresh ideas to improve existing processes but implement new processes as well. New ideas can help your business capitalize on opportunities that were missed or underutilized. This is especially helpful when trying to gauge your customer’s experience and satisfaction. External ideas can add value to your company that you might not have realized was missing, and partnering with the right BPO company will make all the difference.
14. Partner With Like-Minded Professionals
Is your company’s goal to provide the best products and services available in the market? Do you want to work with professionals who have similar goals? If you answered yes, then you should consider partnering with a business process outsourcing company. We understand that successful businesses are built upon a foundation of exceptional service and dedication to our clients, and we strive to provide the best customer experience money can buy. By partnering with us, you can be sure that while you are focused on providing the best products to your customers, we are providing them with the best customer experience.
15. Risk Mitigation
Let’s face it, every company is specialized in their particular field. Whether that’s medicine, retail, e-commerce, or the like, your company is successful because it focuses on the field it’s proficient in. However, while customer experience might not be your company’s field of expertise, it is ours. Need someone to handle your marketing? There are BPO companies to handle that too. Partnering with a BPO company allows individuals experienced in their field to handle the operations of processes you are not specialized in or that require special attention. Handing off specialized work to employees who aren’t proficient in that field comes with some risks. For instance, a marketing professional and a public relations professional have two completely different jobs. While both specialize in a form of communication, a marketing professional likely doesn’t have a desirable skill set for handling a PR crisis, and should such a situation occur having the right professional for the job can mean the difference between maintaining or tarnishing your company’s reputation. .
Benefits of Partnering with ProximoCX
16. Data Intelligence
At Proximo CX, we are a data-first BPO company, meaning we focus on creating data models with the insights gathered by interacting with your clients. We use AI and machine learning to arrange, analyze, and interpret data that will allow you to make more informed decisions when improving products and services, crafting plans for growth, and making decisions to protect your company, clients, and customers.
17. High Capacity
By partnering with Proximo CX, you won’t have to worry about staffing a call center that can handle excess calls during peak hours. Our team of professionals is equipped to handle high call volume without sacrificing the quality and service you and your customers expect.
18. Multilingual Support
Partnering with a BPO company that has offices across the globe not only allows you to better understand global markets but also allows you to better serve customers internationally by connecting them with customer service professionals that speak their native language. Communicating with your customers in their own language will make your customers feel more valued and will encourage them to use your services instead of the services offered by competitors who might also be using their native language.
19. Quality Assurance
Partnering with a company that has the staff and technology to monitor the quality of calls is imperative to the success of your customer experience department and in ensuring your call center team’s performance is top tier. At Proximo CX, our goal is to provide the highest quality customer experience on the market, and we have the tools and expertise to ensure that all calls are handled in a manner that leaves your customers satisfied.
When you partner with us, we want you to think of us as more than just a strategic business partner. At Proximo CX, we are constantly innovating; not only are we utilizing the latest tools and technologies to provide ever-improving experiences for customers, but we are also revolutionizing the employee-employer relationship. Nothing is more harmful to a business, or a person for that matter, than stagnation, which is why we believe in cultivating the careers of those we employ.
We are always working to advance and improve the customer experience we provide, and we are equally passionate about pushing those who work for us to advance in their own skills and proficiencies. By partnering with us, you won’t have to worry about your customers’ experience falling flat or stagnating. We are continuously striving forward, and we are always reaching for what’s next.