Running a successful company means that you must find innovative ways to bolster profits and make your business run as efficiently as possible. One effective step towards achieving this, is to outsource many of your business operations to third-party merchants through Business Process Outsourcing or BPO services.
Outsourcing began in the manufacturing industry when companies began to hire outside sources to handle the more trivial tasks that were required to create their products. This practice was incredibly successful, and today, we have seen outsourcing transition into business operations.
BPO is used in two different areas of work: back-office functions (accounting, IT services, and human resources), and front-office functions (customer support, and marketing).
BPO often outsources non-core operations and is a viable option because it allows you to devote more time to the most pressing matters, like customer relations and product development, which are at the core of your business.
For many startups, outsourcing is a must due to their limited capital and resources. For more established companies, it is done when a third-party BPO company is shown to do the job better, and cheaper than they could do themselves.
Outsourcing allows you to play the field. Without it you are limited to what is in front of you so to speak, whereas with outsourcing, you are able to access high quality services, without as many hang-ups.
For American companies which are stricken by some of the highest corporate taxes in the world, outsourcing is a way to avoid this burden. Certain services also cost more in America than they do elsewhere. For example, an Indian software engineer gets paid anywhere from $4,000-$23,000 per year compared to American software engineers who get paid up to $100,000 or more per year.
By outsourcing you also save on office space and offer flexibility to your employees, many of whom are able to telecommute. This improves their quality of life as they are able to work from home and avoid all of the headaches that come with commuting to and from work.
The way we do business is changing. No longer are you constricted by your lack of resources, government taxes and regulations, or a lack of professionals. With B.P.O you are able to access world-class services for a fraction of the price and are able to focus more time and energy on the aspects of your business that drive profitability.