The business process outsourcing (BPO) industry is growing in leaps and bounds. The latest from Statista shows $12 billion year-on-year growth with a total valuation of around $90 billion. It’s no surprise, considering BPO has the potential to transform your company’s daily operations and help you build a stronger organization.
But, if you’re new to business process outsourcing, there are many new terminologies to learn, and it’s not always easy to separate the facts from the fiction you read online. On this page, we’ll give you a high-level overview of everything you need to know to decide if BPO is right for your organization and how it can help.
What’s the Meaning of BPO?
BPO is short for business process outsourcing. It involves having a third-party handle your non-core business tasks. These are the things your business has to manage as part of running a company, but they’re not directly tied to the products or services you provide.
Sometimes they’re broken up into front office BPO and back-office BPO.
- Front Office BPO: Customer-facing tasks such as customer service and sales.
- Back Office BPO: Behind-the-scenes tasks such as accounting and regulatory compliance.
Commonly Outsourced Processes
Although virtually any business-related task can be outsourced, a few of the most common processes are outlined below.
- Accounts Payable & Receivable: Outsourcing companies can take overpaying your bills or collecting to provide assurance it’s being handled expeditiously and accurately.
- Business Continuity Planning: As continuity specialists, BPO firms can ensure your organization is prepared for unavoidable challenges like natural disasters and pandemics.
- Business Process Reengineering: By evaluating your organization’s goals and current processes, a BPO company can find ways to eliminate bottlenecks and make processes more efficient.
- Contact Centers: Everything from customer service through sales, loyalty programs, support, and even government 311 contact centers are routinely outsourced.
- Imaging & Document Scanning: Because BPO firms have top-notch tech that can handle large volume scanning, they’re well poised to tackle all incoming documents and ensure the data goes to the right person or department.
- Data Capture: BPO firms bring together the best of both worlds—automated data capture and manual entry—to speed processes and reduce errors.
- Digital Mailroom: Often, companies turn to digital mailrooms to go paperless and operate more efficiently. A BPO firm handles all the incoming mail, scans it, routs it to the right place, and follows any other requirements you may have.
- Document Processing: Everything from membership forms through applications, invoices, and reports can be digitized by outsourcing companies.
- Document Storage & Retrieval: Often, sensitive industries such as insurance, healthcare, and finance have regulations that require documents to be held for a specific amount of time. BPO companies follow the document’s full lifecycle so organizations can be compliant and have access to their documents as needed.
What Are the Benefits of Business Process Outsourcing?
There are lots of benefits of business process outsourcing. Organizations usually partner with outsourcing companies for one or more of the following reasons:
- Focus: When someone else is handling your non-core tasks for you, you can focus on what you do best. Organizational leaders appreciate this because they’re no longer distracted by periphery tasks and are free to work on things that will drive the business forward.
- Specialization: Outsourcing companies are usually experts at the services they provide because they do it all day, every day. This specialization means your organization benefits from efficiency and quality boosts.
- Improved Service: Whether you’re talking about front-office BPO and direct customer service or back office BPO and things like the mailroom, which may indirectly impact the service customers receive, outsourcing can help.
- Resource Allocation: Resources of all types, from people through capital, can get tied up in inefficient processes and bottlenecks. BPO eliminates this, so you can allocate more resources to the things that will genuinely grow your business.
- Continuity Planning: Even though continuity planning is a stand-alone service, it can also be included in the processes that BPO companies take over for you, so you can rest assured your organization won’t lose time or money from unavoidable events when you don’t need to.
- Measurement and Accountability: A great BPO firm will measure their success and let you see how they’re performing.
- Cost Savings: All this adds up to exponential savings as well as revenue growth for most companies.
How Do I Choose Between Outsourcing Companies?
Now that you’ve seen the benefits of outsourcing and all the ways your organization can leverage BPO, you’re probably wondering how you can go about selecting one. Here are a few things to look for:
- Expertise: Whenever possible, choose a firm that regularly works in your industry. They’ll understand your concerns, customers, and regulatory compliance needs more. For example, DATAMARK provides BPO services for many industries, including healthcare, banking and finance, transportation and logistics, government agencies, and more.
- Time in Business: It probably goes without saying, but the longer a BPO firm has been in business, the more knowledge they will have amassed, and the greater the chances are, they’ll have a stellar track record with their existing clients. DATAMARK has been providing BPO services to Fortune 100 companies and other large organizations for three decades.
- Location: The ideal location will vary based on your needs and processes being outsourced. DATAMARK has the flexibility to work anywhere in the world, including in our client’s facilities and across the globe for overnight processing of documents. We have facilities in the U.S., Mexico, and India to support this.
- Services Offered: It’s usually better to go with a company that can help you with lots of things, so you can work with someone who truly understands your business and already works seamlessly with your team.
- Business Process Analysis: Some companies provide one-size-fits-all solutions that don’t fit anyone. At DATAMARK, we analyze what’s happening with your company’s processes now, then look for ways to create efficiencies or save money. That way, your outsourced processes still feel like a natural extension of your company, but they’re addressed in the best way possible without burdening your team.
- Accountability: Not every company creates service level agreements and holds themselves accountable for delivering results for your company. Be sure to ask about SLAs and what happens if the company does not hold up its end of the deal.
- Partnership: Try to find a company that cares about your growth and wants to be with you as you level up—they’re far more likely to invest themselves in creating the results you need.
Find the Right Business Process Outsourcing Solutions for Your Company
Often, organizations don’t know why their current processes aren’t working for them or what they could be doing differently. They simply know something isn’t right or that they’ve grown too big to manage all their side tasks also. Our team is eager to listen to what’s happening with your company and discuss objectives with key stakeholders to identify the BPO solutions that are right for you. Contact us for a consultation.