Business process outsourcing (BPO) companies help their clients with a wide variety of tasks necessary for the organization to carry out its core business activities. It’s difficult to identify hard statistics, but it could be argued that every Fortune 500 company outsources at least one business process and Statista notes that as much as 74 percent of all businesses leverage specific forms of outsourcing.
But, exactly what is business process outsourcing? Let’s dig a little deeper into the concept.
BPO Companies Give Organizations a Competitive Edge
Achieve Better Results in Non-Core Functions
Your organization launched with the goal to deliver the best product or service in your market. The tasks that directly contribute to your success in this area are your core functions, but you no doubt have auxiliary tasks too. They aren’t what you do best, but you address them because they’re necessary. On the other hand, a BPO company focuses exclusively on these tasks and thus has optimized solutions to ensure they’re carried out in the best way possible and with fewer errors.
Enhance Focus on Core Functions
Once freed from the burden of managing these non-core business functions, organizations are able to focus on their core functions. They can often reallocate resources to core areas and gain greater clarity too.
As businesses grow, they tend to carry old outdated processes with them or have a hodgepodge of processes cultivated by different people along the way. An experienced business process outsourcing company will explore how processes are being carried out today and uncover ways to streamline and optimize them, so they’re carried out more efficiently.
Develop a Global Presence
Even if your company is local or only has customers in the United States, having a global presence is vital. For example, you may want documents processed overnight but finding an entire team to work these hours is difficult and all too often unsustainable. However, if your processing team is overseas and highly trained, you can wake each morning knowing the work was expertly carried out while you slept. The same is true when around-the-clock customer care is necessary. Having workforces in various parts of the world is also a boon for providing bilingual service and for speeding up turnaround times depending on where you operate.
BPO services help clients become more agile and prepared to pivot because they’re always ready to scale. For example, if your mailroom has a major influx because people are renewing annual policies, your business process outsourcing firm can ramp up the team without any effort on your part to ensure timely processing. Many firms have continuity planning built into their processes, so unexpected events don’t impact operations too. You may also be able to tap into additional services through the same firm to amplify the benefits of outsourcing.
One of the big things BPO services do is reduce the cost of managing business processes, which boosts the bottom line in and of itself. However, businesses that apply the released resources to other areas of business see even greater profit boosts.
BPO Companies Offer a Variety of Services
There are lots of different processes BPO services help with. Sometimes organizations tap into just one service, while other times they partner with their BPO company for multiple processes.
Contact Center Services
Perhaps the best known BPO service is call centers. While most people associate this with customer service outsourcing, a BPO company may also assist with:
- Product Technical Support
- IT Help Desk Support
- Billing & Payment Support
- Sales Support
- Order Management Support
- Warranty Support
- Loyalty Rewards Program Support
- And More
Data and Document Services
One of the best ways to improve efficiency and reduce errors when lots of documents require processing is to leverage scanning and imaging software. Between this and manual data entry and data capture by highly-trained associates, organizations get the best mix of value and efficiency possible. BPO companies can also follow the entire lifespan of a document, all the way through storage and retrieval too.
High-volume mailrooms can leverage many of the same systems established for data and documents. Through enterprise content management (ECM) services companies can effortlessly ensure information reaches who it needs to and that regulatory guidelines are met.
Unfortunately, unforeseeable events are a fact of life. Anything from man-made errors through natural disasters can impact business continuity. BPO companies address this through things like data mirroring, establishing workflow recovery processes, creating recovery assistance plans, and establishing escalation procedures.
A multitude of finance and accounting processes can be outsourced as well. Areas of accounts payable routinely outsourced include:
- Purchase Order Management
- Invoice Receipt and Imaging
- Invoice Three-Way Match Reconciliation
- Exception Handling
- Employee Travel and Expense Processing
On the other end of the spectrum, tapping into accounts receivable outsourcing can ensure money continuously flows into the business. Areas of receivables the BPO companies often tackle include:
- Order Management and Invoicing
- Remittance Processing
- Cash Application and Posting
- Customer Collection Management
- Refunds and Settlements
It’s also worth noting that some BPO companies help all types of businesses, while others have specialized expertise in specific niches. If your organization falls within one of the following industries, you may want to seek a specialist:
- Energy or Utilities
- Finance or Banking
- Retail or Manufacturing
BPO Services Can Work Wherever is Best for You
There isn’t a one-size-fits-all solution when it comes to business process outsourcing. Sometimes organizations want to keep operations close to home and other times distance isn’t a concern. Because of this, well-established BPO companies have facilities in a variety of locations, so it’s easier for the organizations they serve to have a custom fit.
Outsourcing doesn’t necessarily mean having your non-core functions carried out elsewhere. You can tap into the benefits of outsourcing and keep operations under your own roof with on-site outsourcing.
Near-Site & Onshore
Businesses that want the benefits of outsourcing but want to free up on-site space while keeping operations a short drive or flight away for greater oversight can choose near-site or onshore outsourcing.
Those who want a mix of value and close proximity will often choose nearshore outsourcing. At DATAMARK, this means leveraging our facilities in Mexico, which are just across the border from our El Paso headquarters. It’s ideal because we’re able to assemble a highly educated bilingual workforce which boosts customer service and secure lower costs for our clients.
When overnight processing is a concern and when organizations want to maximize value while leveraging a highly educated English-speaking workforce, offshoring or farshoring may be best. DATAMARK has facilities in Mumbai and Chennai, India to address these needs.
Find Your Ideal BPO Solutions with DATAMARK
As evidenced here, there are lots of moving parts when it comes to business process outsourcing companies, but finding the right solutions for your situation doesn’t have to be a complex process. At DATAMARK, we get to know the ins and outs of the businesses we serve and walk them through the best options for their needs. Contact us to learn more.