Business Process Outsourcing (BPO)
What is BPO?
Business Process Outsourcing (BPO) is the contracting of operations and responsibilities of a specific business process to a third-party service provider.
What are the pros and cons of BPO?
A company can focus more time, effort and money on it’s core competencies – it can outsource certain operations which are not believed to be as of “core” value to the business
Improves speed of business processes – an effective use of supply chain management and BPO increases the speed and therefore overall efficiency and productivity of certain processes, such as throughput time in the case of a manufacturing company
Improves flexibility – BPO allows for a company to focus on transforming their fixed costs into variable costs. This is done through having a decreasing need to invest in fixed assets, as the operations are being outsourced, and so is making the company flexible.
Reduced costs – there would be less of a need for paying permanent full-time staff, and reduced overhead costs due to having less physical presence
Improved quality of operations – a company chooses to outsource due to the third-party option being better at doing the job – this would improve the quality of the operations through getting the specialised experts to do the job instead
Loss of control – outsourcing shifts the control of operations to the third-party service provider, as these processes aren’t being monitored or performed by the company outsourcing it’s operations
Lowered quality – BPO can result in the third-party client having a lack of motivation to produce the standard wanted by the company that is outsourcing, which may ultimately result in a lower product or service quality
Lack of collaboration – third-party clients may be working to a different schedule overseas, instructions may be lost in translation and ultimately the quality of operations could be hindered
Hidden costs – although BPO is seen as a money-saving affair, various hidden terms in the small print can penalise companies heavily with unexpected costs
Loss of confidentiality – outsourcing your operations means sharing some of your knowledge with another firm, which may potentially result in data loss and leaks
MicroBPO by Proceedit
The Micro BPO services provided by Proceedit are based on an organization’s internal users, external users to the clients organization, suppliers and collaborators, and external BPO operators or those belonging to one or more subcontracted companies sharing the same process.
The process tasks are categorized as those that internal users, external users and those that can benefit internal users or, alternatively, the BPO operators must do, depending on the circumstances (internal workload, committed service level, specific situations of lack of internal staff, seasonal work points…).
Everyone working with the same process provides maximum flexibility, minimal cycle and cost, maximum control and no loss of information.
Therefore, that being said, it is in our understanding that microBPO is the best outsourcing strategy that technology support can offer.