What are Types of Business Process Outsourcing and Advantages of BPO?

Call Center Agents Taking calls from Customer Image source: c2o

 TYPES OF BPO:

The BPO industry is divided into three categories:

Offshore Outsourcing: They are located outside of the company’s own country. For example, a UK company may use an offshore BPO call centre in Sri Lanka.

Nearshore: These outsourcing companies are located in countries that neighbour the contracting company’s country. For example, in the UK, a BPO in Ireland is considered a nearshore vendor.

Onshore: These service providers operate within the same country as the contractor, although they may be located in a different city.

ADVANTAGES OF BPO:

1.  You Can Reduce Costs:

Outsourcing cuts down on costs for your in house employees. It also saves cost as the company manages to save the workspace to grow their core departments. 

A benefit to this is that an outsourcing company that's physically located in a developing country offers lower costs than the rest.

2.  To Concentrate on Key Functions:

BPO outsourcing allows businesses to focus on their main departments and services instead of company departments that are not direct with their core processes.

For example, when outsourcing, the company will not have to monitor the customer care department. Rather, it can focus on highlighting its core business and maximising overall growth. 

In turn, these actions can boost a company’s performance and enhance its interactions with clients. In the end, the company can enjoy improved customer satisfaction and increased profits.

3. Increased Security:

Outsourcing companies that specialise in handling financial departments can often provide better security from cyber theft and this particular benefit will be more appealing to you if own a small business.  Small businesses that do not have the resources for in-house cyber security can take advantage of this.

4. To Expand their Global Presence:

Some BPO companies can serve customers in multiple languages, 24/7 service meaning each time zone can be catered, thus relieving and giving a break to the contractor. Outsourcing companies can leverage their presence in multiple countries and promote diversity this way.

5. More Efficiency:

Because outsourcing companies specialise in the services they provide, their agents/operators can handle different situations way more efficiently than most in-house employees.

6. Better Coverage:

Outsourcing firms train multiple employees for the same tasks, promoting diversity and offering a talent pool. That means you never have to worry about falling behind if someone calls in sick. Let’s not forget that they usually work around the clock so you will never miss a call from the customer.

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CHOOSE TO OUTSOURCE: Outsourcing your business services to a third party vendor is one of the main tools that modern businesses can use to progress. 

To summarise it all, Outsourcing cuts down on labour costs, gives a competitive advantage over your rivals, increases service levels and creates a long term bond with your clients. 

We hope this article helped you understand everything about bpo and why it can be a game-changer for your business.