28 Apr WHAT ARE THE ADVANTAGES OF THE BPO INDUSTRY?
From being a mere $7 billion industry in 2006, to currently being estimated at about $120 billion, the growth prospects in BPO are tremendous, and has shown a lot of promise. So what is so fascinating about this industry that has attracted so many businesses and resulted in this form of growth?
In spite of the challenges in the BPO industry, one of main reasons behind its success is the availability of a large number of talented English speaking individuals at very low costs. This has turned countries such as India into highly sought after destinations for business process outsourcing. As a top global outsourcing destination, India owes its success to well-educated individuals, the majority of whom are very young, and it’s unique location and time-zone advantage. Today, most of the US and UK based companies outsource their requirements to Indian service providers.
6 Advantages of the BPO Industry
The reason for companies to outsource their business processes is pretty simple. Business Process Outsourcing enables business owners to reduce the burden of work and concentrate on other core aspects of their operation. Outsourcing to a third-party company, which is already well-established and has the relevant experience in providing services, is a much more convenient option. Outsourcing your business processes comes with a series of advantages. Some of those include:
- Cost Reduction: Outsourcing helps organizations cut costs and save money, and is one of the most important reasons for people opting to outsource their business process. BPO has given rise to a talented pool of employees available at low wages results in huge cost reductions, which in turn results in better revenues for the company
- Availability of Experienced Professionals: Recruiting new employees and training them involves a lot of hassle and is a huge cost to the company. When the tasks are outsourced to an already established company with all the resources, the troubles of hiring and training is conveniently avoided
- Ability to Focus on Core Business: Since a considerable chunk of the business is outsourced to a service provider, the top management of the company can focus their attention on core operational areas. This also leads to better employee productivity and helps them make better and more informed business decisions
- Excellent Source of Customer Feedback: Most BPO employees are in direct contact with the customers, as a result of which they are able to receive a first-hand feedback about products and services. This valuable feedback, in turn, helps the company to improve upon the services provided
- Access to the Latest Updated Technologies: Buying a licensed version of the latest software and other technologies is very expensive. This proposition is also risky, especially for small to medium-sized businesses who cannot afford to dedicate a steady budget to buying the latest technologies. Therefore, it becomes difficult for a company to stay updated with the latest developments. Outsourcing to companies that already have access to the technology and have the relevant expertise therefore proves to be more advantageous for global organizations
- Excellent Employment Opportunity: The BPO industry is one of the highest job providers in most countries. In fact, it is the ranked second in terms of the number of jobs created in some of the Asian countries. The remuneration provided to the employees is also one of the best in the industry, which is one of the major reasons for youngsters to work in BPO. The BPO industry has provided employment to a lot of talented youngsters and has single-handedly changed the GDP of various small countries
Business Domains Served by the BPO Industry
Outsourcing BPO services has become a significant part of almost all businesses these days. The BPO industry has been responsible for providing cost-effective services to a lot of businesses. The wide range of business domains in which the BPO industry serves include:
- IT/ITES: Software development, IT staffing, Helpdesk services, Infrastructure Management Services
- Financial Services: Bookkeeping, Payroll Processing, Financial Analysis Services
- Healthcare Services: Teleradiology Services, Medical Transcription Services, Healthcare Claims Adjudication
- Call Center Services: Inbound and outbound call centers, telemarketing, email support, technical support services, etc.
- e-commerce Websites: Online ordering, Refund Processing
- Travel Industry: Bookings, Cancellations
- Retail Services: Ordering, Status checking
- Educational Institutions: Course information, Fees Processing
- Manufacturing: Component information, Ordering, Help services
- Telecom sector: Service information, Complaint processing
The Future of the BPO Industry
Due to the numerous advantages of the BPO industry, it has seen tremendous growth over the years, and estimates reveal that this growth will be seen in the near future too. Currently the BPO industry is responsible for creating the second highest number of jobs, and it is estimated that overall worldwide BPO market will cross a staggering $400 billion by 2020!
Today, with in-depth data analytics at their disposal, global businesses are poised to significantly improve upon their offerings, while ensuring backend tasks are taken care of by professional outsourcing service providers. Due to this reason opting for BPO services will become an attractive option for both small and medium businesses alike in the coming years.