What are the Business Process Outsourcing trends in 2020?

What are the Business Process Outsourcing trends in 2020?

Companies ranging from large scale industries to startups favor Business Process Outsourcing.

Every business wants to cut its operating costs and want to focus on the core processes of the company. It is possible when the business outsources non-core operations to a BPO agency.

What is Business Process Outsourcing?

Business process outsourcing is contracting the third-party service provider for different operations and management.

E.g., Converting a book or a document into a Kindle format isn’t done by the author himself/herself. He/she outsources the task of converting it to an eBook conversion company.

Businesses of all industries have become open to BPO services as it has become the best option for cost-cutting and business growth.

The following are the current trends of BPO companies:

1.New technologies:

It has become easier to deploy tasks without the need to have a massive internet connection and people can work remotely. You can hire a BPO agency or freelancer.

Before a few years, it was challenging to manage BPO as it needed a central database and needed a big server that had an exorbitant cost. But with the rise of cloud computing, those servers are much cheaper than they used to be.

2. Multitasking:

BPO services are just limited to call centers was a preconceived notion 25 years ago. But this notion has been eradicated with BPO services providing services in internal functions of Human Resources, Data Processing, Web Development, Accounting, Front Office Work, Back Office Work.

As BPO companies are multifaceted, they are multitasking to overcome the shortfalls of different industries by being backed up with new technologies and have been able to expand to different markets.

3. Increased transparency:

The company measures everything that the resources work towards and collect the data from them and the customers can audit the same data, so they know exactly what is happening.

The smaller industries have made the BPO industry more transparent in terms of revealing their agreements, cost, and policies.

With the cut-throat competition that prevails in all the BPO organizations, many organizations have to make modifications in their policies to prevent themselves from losing their customers to a more trustworthy BPO company.

Due to government intervention, the demand for transparency has increased. Many countries are expected to bring out transparency policies for the BPO industry over a few years.

4. Expanding geographically:

Countries like India, Indonesia, Costa Rica have grasped the BPO industry. Various other countries have BPO zones where companies will be able to operate internationally and eliminates the restrictions of the native country’s legal framework.

5. Startups are relying on BPOs:

In the past few years, there has been an enormous rise in startups. A startup has a lot of pressure as it has to achieve success in limited resources and within a specified time.

With a small budget to hire employees, startups prefer searching for cost-effective services overseas.

Small businesses depend on BPO for providing services such as recruitment, trading etc. at a lower cost.

Now let us look into the advantages of BPO:

1. Diversity in skills:

Hiring a BPO company outside a city or country results in a diversified set of skills and specifications that is seen in the work.

2. Increased flexibility:

Outsourcing non-core functions of an organization allow them to give undivided attention to their core operations.

BPO adapts to the changes in the market and deploys its processes according to the changes.

3. Edge over your competition:

The competitors who don’t outsource the operations suffer in terms of productivity. When a company outsources non-core operations, then it gets time to focus on the core functions. Thus gives them an edge over their competitors.

4. Cost-effective:

Outsourcing operations leads to a considerable amount of savings as you don’t hire employees.

Due to a country’s economy, a country’s low cost, specialized procedures, the outsourcing organizations can complete the business operations at a lower price.

Organizations that outsource operations do not have to follow a fixed cost model as they can efficiently operate through a variable cost model.

Outsourcing decreases the cost of infrastructure as it reduces the space to accommodate employees.

5. Specialized services result in better performance:

Businesses can outsource services to a BPO that specializes in a specific service.

For example, The quality of work done by an external service provider like a graphic designer will be specialized with a standard performance of the service.

6. Global reach:

BPO enables businesses to reach globally by making the company accessible through multiple languages across different time zones.

The availability of services in multiple languages not only elevates your business by providing customer satisfaction but also makes your business reach globally.

Alpha BPO provides services for businesses to grow abundantly by handling the non-core functions of a business.