Outsourcing non-crucial tasks takes away major pain for businesses and allows them to focus on core competencies. That’s not it. There are several other ways a business can benefit from a BPO provider. Primarily, a business will benefit by maximizing profit –
- By selling product and services at a higher price
- Reducing cost
The first approach to increase profits will narrow your market, so it is mostly applicable for businesses with established market share and loyal customer base. Outsourcing increases productivity along with offering a platform for global expansion.
How else do BPOs benefit businesses to increase profit?
Below are some ways BPOs help companies become more profitable.
1. Leverage the BPO experience
Most BPO providers aren’t new in the industry. Some are specialized in your area of work and offer their previous experience. They are data-driven and work by concrete metrics. For instance, CSAT (customer satisfaction), NPS (Net Promoter Score) are metrics for customer’s voice. Outsourcing customer-centric services will improve customer satisfaction and up-sales and cross-sells consequentially.
2. Expand your team
Outsourcing to a BPO not only reduces cost, but adds a competitive advantage to your business. How? A BPO vendor will help you get experienced people onboard who have several years of experience. Your will gain better insights about your product, operations, costumers, while you completely focus on with the experience of these people. You can rely on them to overcome challenges and expand your services.
Some BPO professionals come with certified skills and profound industry experience spread across industry sectors – insurance, banking, finance, among others. Some may have professionals with vast experience in a specific sector who build and oversee processes.
- Assistance in strategic planning
Not just customer service, several business operations can be outsourced. Therefore, businesses can strategically plan their operations accordingly.
As businesses grow, they are required to invest in people, infrastructure, and processes – this is more money and more supervision. Instead of setting up operation for each business, the organization can outsource to BPOs one operation at a time. If a business is still in the experimental stage, it is far better operation to be able to test the idea with all resources available
Once you successfully test the idea, you can expand your operations one by one. Several operations can be outsourced including –
1. Finance
2. Customer service
3. Marketing
- Use technology to move forward
BPO service providers work to optimize and streamline their processes by incorporating latest technologies. The goal is to increase the efficiency of business processes. This requires them to frequently test technologies that fits their use-case. For small teams, these technologies can be expensive and an added operation cost.
You will benefit from these technologies and avoid incurring lose, in case you chose to work in-house.
No doubt, scaling a business is a hard challenge. Some successful businesses overcome these challenges by setting up small business units, others chose to outsource, depending on goals.
BPO industry has grown exponentially in the last few years. Businesses looking to scale are increasingly reliant on BPOs to scale their operations. While there is tremendous pressure for businesses to improve their products and services, BPOs serve as an assisting hand in taking a business forward.
All in all, BPO service providers are not the last resort, but strategic business partners that let you focus on product, while other non-core work is taken care off. When increased efficiency is required investing in people and technology is good, but outsourcing could be a better option.
Today BPOs has done to stand for – do business successfully, instead they root for – grow business successfully.