Business process outsourcing occurs when a business subcontracts some of its core processes, like accounting, customer service, and IT, to third-party vendors. This eliminates the need for a large in-house staff, which can be expensive, especially when considering benefits in addition to high-paying salaries. Typically, most companies view business process outsourcing as a way of cutting costs and saving money through less expensive labor.
However, there has been a larger shift in the way we think about business process outsourcing because it’s not simply a cost-reduction tool. Instead, it’s opening doors to new types of strategic relationships, allowing for new opportunities for the business to grow and thrive.
Moving From Transactions to Partnerships
When business process outsourcing is implemented as a strategic partnership versus a transaction, an opportunity arises to leverage both the business strengths and those of the third-party company to better position the company. Vendors have evolved from simply providing manpower to offering expertise and access to technological offerings, from software to AI-driven automation and data analytics.
While BPO was once a simple way to get tasks like data entry done efficiently, companies can now leverage what experts have to offer. For example, instead of having expensive in-house accounting that relies on one person to handle a massive undertaking, outsourcing this department can result in more efficient and accurate billing, resulting in better, more timely payments, improved cash flow, and even customer satisfaction as there aren’t billing delays or errors.
Access Technology That Drives Results with BPO
This shift in thinking and in how the BPO relationship can truly be a partnership is largely driven by advancements in technology and the ability for a company to get access to these tools and resources at a reasonable price. However, the doors it opened have changed the way businesses work with third-party vendors, shifting from merely providing a service to a partner, both seeking the same thing: success.
When working with a company that offers business process outsourcing, the technology that they offer can be a game-changer for businesses that just don’t have the budget to implement a massive IT staff that can implement and maintain the technology, train other staff to use the technology, and utilize it to its full potential.
Get data analytics that can identify growth opportunities, make known areas that are inefficiently using resources, and more with BPO that offers complete access to expertise, infrastructure, and more. In some cases, technology can completely empower your business to make better decisions that will propel your business forward.
Value Creation Through Modern BPO
Businesses can unlock real value by utilizing BPO as a growth strategy, rather than just a cost-saving tool. Certainly, there are considerable financial benefits, but the value of using business process outsourcing can be substantial when implemented effectively and with the right company.
Global Talent
Utilizing a business process outsourcing firm will give your business access to top global talent who have a genuine expertise in that skill. Conversely, businesses are limited to what is available locally, which, depending on the skill, may be scarce. Not only that, but businesses can then offer around-the-clock services if they so desire, improving service, efficiency, and ingenuity.
Enhance Agility and Scalability
When things change, businesses need to adapt. Especially those in industries where compliance or regulation changes can cause a headache for staff who are simply trying to get the job done and aren’t necessarily paying attention to what’s going on legislatively. Using BPO can help businesses adapt quickly, improving agility and even scalability with access to a large team of experts on demand. Having trained, knowledgeable staff at the ready as the business needs evolve and grow offers incredible value, especially when considering the time and cost it would take to achieve that organically.
Improve Core Competencies
By leveraging the skills, expertise, and technology available from BPO companies, businesses can focus on what matters most — improving, refining, and practicing core competencies. This will enhance the customer or patient’s view of the business, positively impacting reputation and ultimately, the bottom line.
BPO as a Growth Enabler
When companies rethink business process outsourcing from a back-office solution to a strategic partner, the relationship evolves to one of collaboration, promoting growth and success, which benefits both the business and the BPO company.
Data-Driven Innovation
Make decisions about the future of your company and its operations using real data and analytics, not just ideas or perceptions. Identify inefficiencies, opportunities, and discover ways to optimize processes. This can facilitate measured, scalable growth in a way that your company can handle successfully and in a way that helps generate positive changes for longevity and efficiency.
Better Resource Management
Another way that business process outsourcing can help fuel growth in your company is by allowing you to better manage your resources, from your staff to your funds. Using a BPO allows you to spend less money on technology, data entry, accounting, and IT. Meanwhile, utilize the saved funding to facilitate growth, such as opening up another location, adding services and/or equipment to provide them, and more.
Customer Retention and Improved Experience
At the core of any business are its customers. Making sure that customers have a positive experience will impact its reputation, their propensity to come back, and the overall satisfaction of customers served. BPO empowers businesses to serve their customers at the highest level with dedicated customer service support and to ensure the products or services they came to the business for are provided in the best possible way. This all fuels growth!
Rethink Business Process Outsourcing
If you’ve opened your eyes to how business process outsourcing can be a long-term growth strategy instead of a one-off cost-savings transaction, talk with us at Credence. We can help identify ways that you can save money while also helping you see how we can help you achieve your overall strategic business goals. Contact us today for a free quote to learn more about how we can help you succeed!
