Several critical aspects are involved in the successful operation of an organisation. From HR administrative duties to marketing, sales and customer service, managing all these areas by yourself can become tricky, especially as you scale. As organisations consistently seek ways to optimise these operations, reduce overhead costs and focus on core competencies, one strategy that has become increasingly popular is Business Process Outsourcing. BPO allows you to focus on your core business strategies while leveraging the expertise of a leading third-party provider for non-core tasks and processes.
But what exactly is Business Process Outsourcing? How does BPO work? And why are so many organisations leveraging it in their search for improved efficiency and production? In this guide, we’ll provide answers to these questions, explore the different functions you can outsource and what you stand to gain by outsourcing your non-core business processes.
What Is Business Process Outsourcing?
Business Process Outsourcing, or BPO, is the practice of moving one or more business processes to a third-party or external service provider. These processes are usually non-core business operations and may range from back-office functions like payroll processing, IT infrastructure, and human resource management to front-office functions such as customer service or support, sales, and marketing.
For example, an organisation may partner with a payroll processing expert like Workforce Group to take care of everything payroll-related, allowing them to focus on their core competencies.
Historically, large manufacturing companies leveraged BPO to reduce the cost of non-essential business processes. However, it has become common practice among many organisations across diverse industries to outsource their non-core functions to external service providers. Although BPO is usually confused with offshoring, there are obvious differences.
Types of Business Process Outsourcing
Business Process Outsourcing (BPO) falls into three categories, each suited to meet specific aspects of your organisation’s needs. It’s important to critically understand these categories in your desire for streamlined procedures and increased productivity.
1. Back-office BPO
Back-office BPO entails outsourcing business processes that are not customer or client-facing, i.e. they don’t involve customer interaction. They are usually key internal operations occurring in the business, which, when outsourced, can help streamline other processes, reduce overhead costs, improve employee experience, and increase efficiency. Examples of back-office functions that you can outsource include;
- Payroll processing: Payroll outsourcing is the most common type of back-office BPO. You can outsource some or all your payroll functions to an external provider. A comprehensive payroll outsourcing solution includes processes like salary computations, tax deductions, benefit administration, and compliance with applicable labour laws and regulations.
- Data Entry: Data entry is generally a complex and time-consuming process. It requires highly skilled professionals with advanced technology to enter your data correctly and efficiently. By outsourcing to a reputable third-party provider, you can leverage the benefits of expertise and modern technology to carry out this function.
- HR Process Outsourcing: Many organisations also outsource some or all their HR functions. For example, you may choose to specifically outsource recruitment, employee training, compensation and benefits management, general administration, or the entire HR function to an external provider. A leading BPO company like Workforce Group can help you improve employee engagement and access highly skilled talent through efficient HR management.
Other back-office functions include IT management, Accounting, Financial Reporting, etc.
2. Front-office BPO
Front-office BPO focuses on customer or client-facing operations. They’re activities that require direct contact with clients and are essential in delivering excellent customer experience. By outsourcing these functions to an external service provider, you can gain access to top-of-the-line talent and resources, as well as round-the-clock (24/7) customer support. Some front-office operations you can outsource include:
- Contact Centre Outsourcing: Contact centre outsourcing is an increasingly growing business trend that involves partnering with a third-party service provider to manage and operate customer service needs. It goes beyond calls and includes emails, chats and other non-voice support channels. Outsourcing your contact centre to a BPO service provider helps you focus on essential business operations while the experts handle your customer support needs. Whether you are a small, mid or large business, we can meet your client’s expectations seamlessly, help you improve your reputation, and drive your business growth through our state-of-the-art contact centre, Workforce Connect. You also gain access to highly skilled contact centre agents adept at handling customer inquiries and support requests.
- Sales Support: Sales support encompasses a range of activities and resources that help the sales team achieve their goals and improve overall sales effectiveness. It is the most diversified form of outsourcing with the primary objective of empowering the on-field sales team with the knowledge and tools to engage potential customers effectively, address their needs, and ultimately drive successful sales outcomes. Sales support experts provide information and services related to an organisation’s products and/or services. They may include sales coordination, data entry, product support, customer support and all other “behind the scenes” activities that a successful business requires from its customers.
3. Knowledge Process Outsourcing (KPO)
Knowledge Process Outsourcing, or KPO, is a unique category of BPO which involves outsourcing services requiring specialised knowledge. Examples of some KPO functions include market research, legal services and data analysis.
KPO focuses on outsourcing knowledge-based processes and requires a higher level of expertise than traditional BPO.
Why Do Organisations Choose to Outsource Their Business Processes?
Many organisations outsource their non-core business process because it is a cost-effective solution that ensures you connect with professionals who know how to execute efficiently. As a result, you gain flexibility for growth and expansion, enabling your organisation to be more agile and innovative and maintain your competitive advantage.
Benefits of Business Process Outsourcing
Business Process Outsourcing offers several benefits to organisations, including;
Cost Savings
Cost savings is one of the primary benefits of outsourcing your non-core business functions. By outsourcing your non-core processes, you reduce operational costs, including savings on the number of employees needed to complete a process and training costs. In addition, you also reduce the cost of maintaining in-house teams and physical infrastructure such as rent, utilities, etc.
Business process outsourcing may not be cheap, but many businesses find it more valuable to maintaining an in-house staff of equivalent skill level. For example, your organisation’s human resource department could hire a third-party service provider to handle its payroll at much lower costs than it would cost to run payroll yourself.
Improved Quality
Business Process Outsourcing (BPO) provides organisations with improved service delivery and quality in several business processes. By leveraging BPO, you can benefit from better proficiency and accuracy in performing complex tasks and the flexibility to scale operations based on demand. Expert third-party service providers invest in modern technologies that provide cutting-edge tools to improve performance and lower error margins.
Access to Specialised Talent Pool
By outsourcing your business process to an external service provider like Workforce Group, you gain access to professionals with specialised skill sets and experience that you may not have in-house. Ultimately, this helps to improve efficiency, service delivery and quality.
Focus on Core Competencies
Outsourcing non-core business functions frees up resources that enable you to focus on your core competencies. This is especially beneficial for businesses as you do not have to spend time and money on operations that are not part of their core business. In addition, it also ensures improved performance and competitiveness.
Access to Updated and Latest Technologies
Top BPO service providers like Workforce Group often invest heavily in modern technology, such as advanced data analytics, artificial intelligence (AI), robotic process automation (RPA), and cloud computing solutions, to streamline processes, improve efficiency, and provide high-quality services.
By leveraging a BPO service provider, you gain access to a team dedicated to staying ahead of technological changes, giving you access to innovative solutions without the costs of acquiring, installing, and maintaining these technologies in-house.
Business Process Outsourcing (BPO) is a strategic driver and game-changer for organisations seeking efficiency, improved quality, cost-effectiveness, and more focus on core strengths. The numerous benefits of leveraging BPO indicate its critical role in the most successful organisations in an ever-competitive business landscape.
Leveraging BPO is a revolutionary approach if you’re looking to manage the changing needs of business effectively, as it provides opportunities for growth, innovation, and long-term success.
Why Choose Workforce Group as Your BPO Provider
The success of a BPO partnership lies in choosing the right partners. Over the past 19 years, Workforce Group have partnered with several clients across the public, private and third sectors within and outside Nigeria, providing specific BPO services that have helped streamline other processes and ensured they focus on core competencies.
Similarly, we can help you achieve success by providing one, two or all of the following BPO solutions;
- HR Process Outsourcing
- Payroll Outsourcing
- Staff outsourcing
- IT Support Solutions
- Contact Centre Outsourcing
- Sales Support Outsourcing, etc.
To partner with us today for our BPO solutions, kindly schedule a free consultation with one of our expert consultants here. Alternatively, you can send an email to hello@workforcegroup.com
