Business process outsourcing is a scalable and efficient solution in helping businesses address gaps in talents or expertise in the organization. Outsourcing enables businesses to tap into a global talent pool to augment the existing workforce. 

What is BPO? 

Business Process Outsourcing is a strategic process of partnering with external vendors or service providers to delegate or transfer specific business functions or processes. This helps businesses streamline costs, enhancing operational efficiency or addressing gaps in expertise. 

Types of Business Process Outsourcing 

Business process outsourcing can be classified into 3 general categories that depend on where the service provided is located relative to the client. 

1. Onshore Business Process Outsourcing 

Onshore outsourcing involves partnering with vendors or providers that are located in the same country as the organization. Cost savings are relatively smaller compared to other types of outsourcing. 

2. Nearshore Business Process Outsourcing 

Nearshore outsourcing involves contracting service providers located in neighboring countries that are the same region or continent and typically have the same time zone.  

3. Offshore Business Process Outsourcing 

Offshore outsourcing involves sourcing service providers that are located in a different continent and have significant time zone differences, an example would be businesses from the United States outsourcing recruitment to a service provider in the Philippines 

When considering what type of business process model, it is important to consider factors like time zone, cultural, and language differences. However, these challenges are also inherent in global business operations. Finding the right BPO provider can help your organization navigate these challenges and turn them into opportunities for growth and success. 

Advantages of Business Process Outsourcing 

Deciding to outsource business processes is driven by a variety of strategic factors that include cost savings, access to specialized expertise, increased efficiency, and the ability to focus on core business functions. 

• Cost Advantages: One of the most compelling advantages of business process outsourcing is the potential cost savings through reduced labor costs and office space costs. 
• Improved Efficiency: BPO service providers can help businesses streamline processes, especially if these providers specialize in specific business processes like the recruitment process, and software development. 
• Access to Global Talent Pool: Offshore service providers can help expand the talent pool of organizations. Businesses can leverage specialized expertise and talent that may not be available in-house. 
• Flexibility and Scalability: Business Process Outsourcing (BPO) provides the flexibility and scalability to easily expand their operations based on demand and requirements. 
• Risk Management: Outsourcing certain functions can help mitigate risks associated with regulatory compliance, technological obsolescence, and market fluctuations. 

Making Outsourcing Work for Your Business 

Outsourcing can provide many advantages to businesses and organizations. This can include streamlining existing processes, enhancing operational efficiency, and reducing costs. To ensure that businesses can effectively leverage outsourcing it requires careful planning, clear communication and the right outsourcing partner that can provide the right solution for your business needs. Here are just some of the best practices to ensure that business process outsourcing can deliver tangible results to your organization: 

• Identify the Business Process to Be Outsourced: The first step is to identify the business functions that can be outsourced. For example, if there is a need to scale up the recruitment team because of an increased volume of hiring then the business function or process that needs to be outsourced is the recruitment process. 
• Specify the Roles and the Scope of Work Being Outsourced: After identifying the process, it’s crucial to define the roles and responsibilities that the outsourcing partner will take. This includes specific details on the tasks, deliverables and timelines. 
• Set Performance Metrics, Goals and Expectations: Establish clear, measurable performance metrics and goals that align with your business objectives. This can include key performance indicators (KPIs) like turnaround time, quality of work, cost savings, etc. 
• Measure and Monitor Results: Regularly track and evaluate the outsourcing partner’s performance against the set metrics and goals to help determine if the outsourcing partner is meeting business needs and expectations. 

Examples of Business Processes that can be Outsourced 

Outsourcing non-critical business processes can help businesses focus on core competencies while benefiting from cost savings and access to specialized talent.  

• Customer Service: It is one of the most commonly outsourced processes. Typically, companies outsource the entire customer service operations to third-party providers that handle customer inquiries, and complaints and provide technical support. Outsourcing customer service can help businesses provide 24/7 
• IT Services: IT services such as website maintenance, device procurement, network management, and cyber security are some of the many faces of the IT infrastructure that can be outsourced. 
• Software Development: Outsourcing the software development process like design, development, testing and maintenance can streamline development costs and allow businesses to leverage the expertise of specialist software development services providers.
• Human Resources: Human resource functions such as recruitment, payroll processing, Government compliance, benefits administration, employee management, and employee training.  
• Accounting and Finance: Accounting and finance tasks such as booking keeping, tax preparations, account receiving, and financial analysis can also be outsourced.  
• Marketing and Sales: Marketing and sales activities like market research, advertising, social media management, and lead generation can be outsourced to dedicated businesses like marketing and PR agencies. 
• Administrative Tasks: Outsourcing administrative processes like data entry, scheduling, appointment setting, and virtual assistance can streamline operations and enhance productivity by allowing executives to hand off time-consuming tasks to skilled professionals who are expert executive virtual assistants who specialize in efficient data management. 

Finding the Right BPO Partner 

The right business process outsourcing partner can help you balance the risks and benefits of outsourcing. They help mitigate the downsides by providing solutions and guidance that help your organization navigate the complexities of outsourcing and well as provide valuable insights into industry best practices to effectively manage the outsourced process. 

Global ZenTech helps businesses fully leverage the advantages of business process outsourcing as well as manage and minimize risks. We provide tailored cost-effective solutions that help overcome industry specific challenges. Contact our team today.