Business process outsourcing has remained a good strategy for organizations because it enables excellent management of time and resources among many other advantages. For instance, to manage data efficiently organizations can outsource to data conversion services and gain a competitive edge by focusing more on key functions. With back office outsourcing, you can have experts take care of back office processes while entrepreneurs channel their efforts into business growth. Nowadays, we hear people talk about the declining popularity of business process outsourcing, but actual statistics show it is still much sought after.
- In the UK for instance, in the year 2016, the values of outsourcing deals totalled £6.2 billion with customer services accounting for a major portion of this. According to the support services company arvato that revealed this fact, in the first half of 2017 there were £5.2bn worth of outsourcing deals agreed, and this represents an increase of 23% year on year.
- Yet again, Technavio’s latest market research report on the global R&D outsourcing services market predicts a steady growth for global R&D outsourcing services market for the period 2017 – 2021. One of the key driving factors for this growth is cost reduction and efficiency.
- Market Research Future’s report on healthcare BPO points out that this market will demonstrate colossal growth by 2023, phenomenally surpassing its earlier growth records with an astounding CAGR during the period 2016 – 2023. The World Market of Healthcare BPO is required to achieve 250 billion USD out of 2023 from USD 140 billion out of 2016 with a CAGR of roughly 12.7% during the time frame 2017 – 2023.The healthcare BPO market is attributed to an increase in the number of patients getting admitted into the hospitals, increasing volume of medical records requiring management, easy healthcare delivery and maintaining quality.
Business Growth with Outsourcing
- Business organizations have huge volumes of data but to capture and manage data from millions of documents is a difficult task for the employees. If you have many employees or a large customer base, there may be a problem of information overload. Outsourcing helps to resolve these problems. An outsourcing provider with expertise in the field can efficiently handle large volumes of data and your employees will be relieved from data management related hassles. Data processing vendors have trained and experienced personnel who ensure accuracy in the entry of data. They also use the latest technology and procedures for data processing and provide high standard data that helps your organization to achieve their desired goals.
- Outsourcing helps employees to focus more on the core activities of the organization. This will improve the efficiency of the employees and they can spend more time on other productive activities. Take for instance a rapid growth period of a company. These periods will also witness an equally rapid growth in back office operations. If you succeed in obtaining a large contract that will significantly increase the volume of purchasing in a very short period, you can consider outsourcing purchasing.
- In a business,if any operations are running out of control, those can be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. Outsourcing service can bring better management skill to your company.
- Organizations may have seasonal or periodic demand for additional resources. This requirement is best met by outsourcing wherein you can hire extra resources when necessary and release them when that need is over, which ensures staffing flexibility. A typical example is the accounting department that needs extra hands during tax season and auditing periods.
- Outsourcing is a practical option during periods of high employee turnover because it will reduce the risk of uncertainty and inconsistency in operations.
- When your in-house staff lacks the skills required to undertake a large and promising project, on-site outsourcing of the project will bring people with the required skills to your company. Your staff can work alongside them to acquire the new skill set.
In- house service can be expensive as it requires infrastructure, software and other technological equipment whereas BPO service providers are well equipped with advanced technology and have experienced employees who can provide dedicated services at affordable rates. With reduced overhead cost, you can invest more on the core activities of the business.
Outsourcing Service Helps McCarthy and Stones to Recapture Lost Calls
realbusiness.co.uk recently carried a story of successful outsourcing. McCarthy and Stone is a retirement property developer. They faced a problem of missing a significant number of calls. Richard Jones, national sales operations director at McCarthy & Stone said that the calls were directed to each department and they found that 80 percent of incoming calls were missing because the sales staff at development were busy with other face-to-face contact. It was very important to find a solution to this problem. The firm wanted to re-capture lost opportunities, maximize the return from their marketing investments such as door-drops, mailshots and advertising and build a relationship with new customers. So, the team decided to outsource its customer service to a third-party provider, and 78 percent of previously lost sales opportunities were captured.
Outsourcing to a reliable third party allows businesses to focus on core competencies, cut costs and improve efficiency. Outsourcing will give away some of your business tasks that can be easily managed by an independent entity. It also means that a large amount of resources and attention that might fall on the shoulders of management professionals can be used for more important, broader issues within the company. The specialized company that handles the outsourced work will normally have world-class capabilities and access to new technology that a growing company simply may not have. If a business is looking to expand, obtaining outsourced solutions from a reliable BPO firm is a cost-effective way to start building a strong foundation.