With a growing market value and an upward compound annual growth rate (CAGR), the global business process outsourcing (BPO) market is going to be a thing of the future. Improved efficiency and low operating costs will drive the business process outsourcing market growth. Organizations are looking to seamlessly adopt advanced technologies, such as AI & cloud computing.
The article details the key factors behind the growth of the global BPO market and why organizations can avail of the services.
What is Global Business Process Outsourcing?
Global business process outsourcing refers to the contractual agreement between an organization and an external service provider to conduct business functions or tasks. These operations are critical to business processes and require a deep understanding. Hence, business process management must identify the need for business process outsourcing and get secure services.
BPO agencies these days cater to the needs of organizations across different verticals. Manufacturing, IT Management/Services, Marketing, and Research sectors are increasingly taking help from service providers. The primary reason is standardizing a process and meeting operational requirements.
The Benefits of Business Process Outsourcing
Business process outsourcing services provide resources to perform specific business operations and add flexibility to the process. The list of benefits include:
- Robust and technologically advanced infrastructure
- Dedicated services from multiple global delivery centers
- Smooth transitioning to streamline business operations
- 360-degree security & confidentiality
Uses of Business Process Outsourcing
Business process outsourcing can be used for both back-office and front-office operations. Agencies offer goal oriented BPO services aligned with business requirements. Whether it is to elevate the customer experience or enhance brand reputation, these services will be across channels and ensure better results. The tasks businesses can outsource include:
- Accounting
- Human Resources
- Payment Processing
- IT Services
- Sales
- Marketing
- Customer Relation Services
Who Can Benefit the Most from Business Process Outsourcing?
BPO services are most frequently outsourced by the payroll, finance, and IT sector. Other industries using BPO services are Healthcare, Telecommunication, and Shipping/Logistics. All these industries have business operations critical to efficient and reliable business performance.
These operations emphasize core competencies and add to the business value for customers. Hence, BPO service providers are witnessing increased demand to perform critical business operations.
The advent of the COVID-19 pandemic forced BPO agencies to restructure their Business Continuity Plan (BCP) and redistribute the resources. Hence, they were able to fill the gap that appeared from the disruption in services due to the pandemic.
Several key players in the BPO industry faced challenges in maintaining work efficiency after the forced work-from-home situation. The pandemic revealed a lack of infrastructure and risk of data. All these let the agencies plan accordingly and address the issues.
BPO encompasses several services, such as:
- Call Center Services (inbound & outbound)
- Telemarketing & Email Support
- Web & Mobile Software Development
- Data Entry & Data Analytics
- Research & Analysis Reports
What Makes Business Process Outsourcing Relevant in the Present Times?
There might be many factors that are driving the growth of Business Process Outsourcing. Let’s have a look at a few of them:
- The use of new-age digital technologies propelling companies to outsource specific tasks
- The ability to resolve complex customer problems and improve overall customer experience
- The proficiency in managing complex workflows & automate work processes
These factors allow companies to free up valuable resources for alternate tasks and enhance the overall business proposition. Also, the BPO agencies will provide expert services to contribute to the market reputation.
Factors to Consider Before Hiring A BPO Service Provider
The list given below will ensure organizations can secure the appropriate services that will boost their bottom line with time. To meet the ever-growing demands, the global business process outsourcing market is welcoming new players to cater to diverse business needs.
Here’s the checklist to identify the right service provider
- Identify the business process for outsourcing
- Calculate the current operational cost
- Speak to an analyst to discuss the requirements
- Understand the services and their costs
- Estimate the cost reduction
- Pick a service
- Analyze reports to ensure the service costs remain in control
Key Takeaways
The article covers different aspects of the global process outsourcing market and its driving factors. The list given below will ensure organizations can secure the appropriate services that will boost their bottom line with time. To meet the ever-growing demands, the global business process outsourcing market is welcoming new players to cater to diverse business needs. Here are some key takeaways from this article:
- The increasing need for expert assistance in critical fields drives the rise of the global process outsourcing
- BPO services can cater to diverse business needs and adds flexibility to the system
- Organizations can assess reports & insights provided by the BPO agency
- Organizations can increase overall business efficiency
- More resources are available to perform significant tasks
These points clearly outline the boost in the global business process outsourcing market. Organizations are getting agencies on a contract basis to conduct critical business tasks and reduce operational costs. We can rely upon BPO services to outsource operations and enhance the service quality for customers.