Why Outsource?
Basic/Traditional outsourcing services, which curb direct costs, such as hardware/software maintenance and operation costs. The second type of outsourcing helps lower “indirect” costs and achieve efficiencies in areas related to business processes. This is termed Business Process Outsourcing. At the highest level, is the Business Transformation Outsourcing.
Simply put, BPO is the delegation of one or more business processes to an external provider who in turn provides services for the selected process based on certain defined and measurable performance criteria specified by your organization. This generally involves an organization’s non-core processes.
BPO is growing because companies want to focus on their core businesses. Companies worldwide feel the need to shed their ancillary processes, free up internal resources to focus on their core business competencies.
BPO is a strategic management tool that can help organizations to improve process level efficiency and effectiveness, as well as reduce costs.
Cost Advantages
BPO provides an accounting advantage – financial engineering with regard to assets, staff and infrastructure.
Innovation and speed to market
Ability of the outsourcer to do things which an organization cannot do on its own or does not have the domain expertise. Increased customer satisfaction, more efficient operations by focused effort on customer service by the outsourcer.
Economy of scale
BPO provides the flexibility to respond to a rapidly changing marketplace and scale operations up or down as conditions dictate.
Business risk Mitigation by capitalizing on the outsourcer’s knowledge of local laws, infrastructure, processes and expertise.
Rapid access to high quality practices at the outsourcer’s end.
Availability to skilled personnel also increases the quality of service. Outsourcing a process also means the buyer no longer has to manage the head count. Recruiting and retaining talent in a tight market is difficult. The level of difficulty increases with the specialized knowledge required. The outsourcer, on the other hand, is adept at attracting the best and the brightest in its field.
Shorter project delivery times due to the expertise of the outsourcer with regard to transition of business processes to the offshore site.
Using the time difference to your favor, especially where the offshore company provides support or maintenance.
Better control over operations – Internal resources can now focus on core customer service processes.
