Efficiency has been one of the country’s biggest competitive business market demands. In this scenario, new strategies are gaining ground, as is the case with BPO. Despite the different name, this is a process of outsourcing core activities to companies specialized in certain areas.
Therefore, if you want to know the advantages and disadvantages of BPO, continue reading until the end and understand how it can be useful for your company.
What is BPO – Business Process Outsourcing?
The acronym means “Business Process Outsourcing;” in other words, this process refers to the procedures adopted when a company hires another to carry out activities in an area of importance for the business — but does not represent the core activity of the person hiring it.
To illustrate a little better, this type of process is the same as when the owner of an educational establishment hires an accounting company, for example.
How Does BPO Work?
The main factor is being able to count on professional assistance from an outsourced company, which will help you deal with processes and resources while you can focus on your main activity. You could, for example, hire food companies, cleaning, maintenance, medical care, and whatever you think is necessary.
However, it is worth highlighting that outsourcing core activities, that is, processes directly linked to each company’s final product or service, is prohibited. Therefore, in an educational institution, educational services could not be contracted.
Discover the Advantages of Business Process Outsourcing
Guarantee of positive updates for your institution. With the support of other companies to take care of supporting activities, managers can focus on increasing efficiency, reducing costs, controlling weaknesses and strengths, or supervising employees. As a result, the institution’s performance only tends to grow. In short, BPO brings competitive advantages.
See below some of the main benefits of implementing this system in organizations!
Time Optimization
When an organization transfers services to another, employees have more time to dedicate themselves to their main activities. The quality of work increases, and the environment is no longer overloaded. Furthermore, hiring another company to carry out certain tasks leaves you with more space in your institution.
Economy
You can replace fixed employee costs with variable costs according to the service demand, which will be paid monthly. You save on labor costs, benefits, and training, in addition to selection and dismissal processes, which will no longer be under your responsibility. However, you must be careful when choosing an outsourced company: analyze whether labor rights will be guaranteed.
Specific Knowledge
BPO helps you count on professionals who are specialized in each activity, trained, and experienced in the processes. This means that your tasks will be in qualified hands, and your service demands can be met with quality and efficiency.
Allied to BPO is called KPO: Knowledge Process Outsourcing — or Outsourcing of Knowledge Processes. It exactly means hiring professionals with understanding. This ensures that all processes will be completed considering the most diverse rules and legal criteria and that all risks can be analyzed and controlled. The contracted company must be responsible for updating its employees, as well as its technologies and processes.
This level of quality is difficult to achieve with internal teams. If you want to build a specialized team in your organization, you will have to spend money to hire high-level professionals or invest in developing those who do not yet have as much experience. However, it is important to know how to choose the outsourcing company that will be hired.
Ways To Choose a Company for BPO
It is extremely important to know how to choose the most suitable company for the BPO strategy in your organization. The chosen company needs to have knowledge and competence in the area of activity, consultancy for the implemented procedures, and process automation, which will guarantee the integration of activities. Furthermore, the values of the contracted company must be aligned with those of the contractor.
Implementation of Business Process Outsourcing
BPO experts say that some measures must be taken before implementing the strategy. To know:
- outline the organization’s structure and identify what can be outsourced;
- research market leaders offering BPO in each area;
- define the types of services that should be provided and constantly monitor the results.
Additionally, while implementation is very beneficial, it is important to maintain excellent strategic planning. This is because using this system can generate some risks for the organization, such as dismissal of employees, greater investments in contracted activities and, finally, unforeseen events if it is unable to successfully complete the objectives set.
Conclusion
With this article, you understood all the main advantages that implementing BPO can offer your company: cost reduction, increased productivity, time optimization, internal flexibility, and use of high-level technology and knowledge. Always remember to carefully research the companies that will be partners and pay attention to the service contract.