Business process outsourcing (BPO) has been in the market for quite some time now. Many businesses have started to take advantage of this to improve their efficiency and cut costs. However, some are still hesitant to work with BPO industries due to certain misgivings or misconceptions they have heard from others.
If you consider working with a BPO company, how can you be sure that it has the business solutions you’re looking for? Let us find out.
What is outsourcing?
What is outsourcing? Foreign companies, who have the necessary resources, skills, and expertise to perform specific processes or tasks on your behalf, are referred to as outsourcing companies. These companies are then responsible for performing a particular business process on your company’s behalf. This can be anything from back-office operations to customer support services. Businesses hire dedicated developers to do non-core business functions.
As a business owner, outsourcing specific business processes can help you improve the efficiency of your operations. It also allows you to cut down on costs since most BPO companies charge based on a per-project basis or offer monthly subscription plans.
Before working with a BPO company, it is essential to research and find one that offers the services and solutions that fit your business requirements. Make sure to also ask for quotes from different providers to compare rates.
Here are some of the advantages of outsourcing:
- Cost savings: By outsourcing specific business processes to a BPO company, businesses can significantly reduce operational costs and achieve business goals faster. This is because most BPO companies charge per project or offer monthly subscription plans, allowing businesses to only pay for the services they need. Moreover, an offshore team, for example, from the Philippines, will have lower labor costs.
- Improved efficiency: When you outsource, businesses can focus on their core competencies and leave the non-core or repetitive tasks to the BPO company. This results in improved efficiency and productivity overall.
- Flexibility: A BPO partner offers businesses the flexibility to scale up or down their services according to their business needs. This helps companies save on costs, as they only pay for the services they require.
- Improved quality: When you work with a reputable BPO company, you can ensure that they will provide high-quality services. They do not interfere with management issues and ensure business continuity.
What types of outsourcing work best?
There are three types of outsourcing techniques you can choose.
- Offshore outsourcing: This type of outsourcing involves working with a company based in another country. An offshore staff will do the requested project—the most popular destination for offshore outsourcing in the Philippines due to its large pool of English-speaking talents.
- Nearshore outsourcing: This type of outsourcing involves working with a company located in a neighboring country. Nearshore outsourcing is often used by North American and Europe companies who wish to outsource to Central and South American countries.
- Onshore outsourcing: This type involves working with a company within the same country. It involves a local talent given a particular IT-related task, not part of the core business. Onshore outsourcing is often used by companies who wish to outsource to other parts of their own country.
Whichever type of outsourcing you choose, do your research and work with a reputable BPO company.
What services can be outsourced?
Business owners can outsource many different business processes.
- Back-office operations: These include accounting and data entry tasks, which are often outsourced to BPOs.
- Customer support services: Customer support is an integral part of any business, and many companies outsource their customer service functions to specialized BPOs. Some of the most common customer support services that owners can outsource include help desk support.
- Website design and development: Many businesses outsource their website design and development to BPO services. Most BPO service providers have the necessary skills and resources to create a professional-looking website.
- Content creation: Content creation is another popular service that owners can outsource to BPO companies. This includes creating blog posts, articles, social media posts, etc.
- Marketing services: Marketing is a complex process that requires specialized skills and knowledge. As such, many businesses choose to outsource their marketing needs to BPOs. Some of the most common marketing services that owners can outsource include lead generation, market research, and email marketing, depending on the business’ industry.
- Software development projects: Software development is a complex and time-consuming process. Many businesses outsource their software development projects to companies in the Philippines. This allows businesses to focus on their core competencies while leaving the software development to the experts.
Outsourcing in the Philippines – why is it the best choice?
To ensure business growth, outsourcing to the Philippines has become a popular option for companies worldwide.
Here are the pros:
- Cheap labor: One of the main reasons businesses outsource to the Philippines is because of the affordable delivery of the BPO sector. This is because the cost of living in the Philippines is relatively low, so salaries are also lower.
- The Philippines has a large pool of highly-educated and skilled workers. The country produces around 400,000 college graduates each year.
- Fluent in English: The Philippines is a former colony of the United States, which means that English is one of the official languages in the country. This is advantageous for businesses as they can be confident that their BPO employees will be able to communicate effectively.
- Government support: The Philippines is considered one of the most business-friendly countries in Asia. As such, it has attracted many foreign investors over the years.
- Robust infrastructure: Businesses outsource their IT needs to the Philippines because of its solid and reliable infrastructure. This includes fast internet, making it the leading provider of BPO services globally.
- Flexibility: The Philippines is known for its flexible work schedule, perfect for businesses that operate in different time zones.
The Philippine government has also supported the BPO industry, providing various tax incentives and subsidies to help businesses grow.
Here are the cons:
- Possible language and cultural barriers: Although it is an English-speaking country, the Philippines may pose some communication and cultural challenges for business owners. This is especially true if they want to outsource complex or highly specialized tasks to BPOs in the Philippines.
- Reliance on technology: The BPO industry in the Philippines has grown significantly over possible challenges in outsourcing to the Philippines:
On the other hand, the pros often outweigh the cons when outsourcing to the Philippines, not to mention the significant cost savings the company can achieve.
Potential risks of the outsourcing industry
While there are many advantages to outsourcing, there are also some potential risks that businesses should be aware of. These include:
- Data security: One of the main risks of outsourcing is data security. This is because industries will be sharing sensitive information with their BPO employees. As such, businesses must choose a reputable and reliable BPO service provider.
- Language barrier: Another potential risk is the language barrier. While the official language is English, some employees are still not proficient. This is because not all BPO employees in the Philippines are fluent in English. This can lead to miscommunication and errors.
- Cultural differences: There can also be cultural differences between the business (western culture) and the BPO company. This is because of the different values and beliefs of each culture. Companies need to be aware of these differences to avoid any misunderstandings.
- You may lose complete control of the project: One of the risks of outsourcing is losing full control. This is because you will be relying on the BPO company to complete the project. You will need to trust that they will do a good job.
What should you do to get the best out of outsourcing from the BPO industry?
To get the best out of outsourcing to the Philippines, businesses must choose a reputable and reliable BPO company. Owners can do this by doing thorough research on different service providers, including their experience, track record, and quality of work.
Furthermore, it would be best if you do the following:
- Create a detailed project plan with clear timelines and expectations. This will help ensure that the BPO company can deliver high-quality work within the agreed timeframe.
- Establish clear communication channels and protocols with the team in the Philippines. This will make it easier for you to address any issues or concerns during the project.
- Monitor the progress of the project regularly. This will help you identify any potential problems early on and take corrective action if necessary.
Outsourcing to the Philippines from its BPO industry has many advantages, including a large pool of talented workers, government support, and a robust infrastructure. However, businesses should be aware of the potential risks, such as data security and cultural differences.
Businesses must choose a reputable and reliable BPO company to get the best out of outsourcing. Furthermore, they should establish clear communication channels and regularly monitor the project’s progress.
The call center industry is one of the booming BPO services, not just in the Philippines. The outsourcing industry has helped small businesses, offshore operations, offshore workforce, data processing, offshore staffing, and remote staff.
The industry provides an opportunity for businesses to get quality services at a fraction of the cost.
Indeed, technology provides better access to these services.