Business Process Outsourcing
Business process outsourcing (BPO) is a business practice in which an organization contracts with an external service provider to perform an essential business task.
Typically, an organization first identifies a process that is necessary for its operations yet is not part of its core value proposition in the market; this step requires a good understanding of the processes within the organization and strong business process management.
Processes that are performed the same or similar from company to company, such as payroll or accounting, are candidates for BPO.
Commonly outsourced processes include the following:
- accounting
- administration
- customer services and call centers
- HR
- IT management and services
- manufacturing
- marketing
- research
- sales
- shipping and logistics
Types of BPO
- Offshore outsourcing, or just offshoring, occurs when an organization contracts for services provided with a company in a foreign country.
- Onshore outsourcing, or domestic outsourcing, happens when an organization contracts for services provided by a company that operates in the same country as the hiring organization.
- Nearshore outsourcing is when an organization contracts for services provided by companies based in neighboring countries.
What are the benefits of BPO?
- cost savings, cited by 70% of enterprise leaders surveyed;
- flexibility, cited by 40%;
- speed to market, 20%;
- access to tools and processes, 15%; and
- agility, 15%.
What are the risks of BPO?
- Security breaches.
- Unanticipated/higher costs.
- Relationship challenges.
- Overdependence on the external provider.
- Increased potential for disruption.
How to choose a BPO provider
- an adequate understanding of the organization’s business and industry;
- the capacity to meet current requirements, as well as scale to meet future needs;
- an understanding and ability to meet compliance and regulatory requirements, as well as data privacy needs;
- reporting metrics to demonstrate it’s delivering on contractual standards; and
- the geographical locations to meet business needs and/or regulatory requirements.
Why Work With Us
- Taking your budget limits seriously
- Transparent service supported by regular reports
- Cultivating continuous improvement
- Tailored communication with each stakeholder
- The security and performance scalability of your ecommerce website are guaranteed
- If something goes down, there is a team to fix it up before your customers get frustrated
Have Your Outsourcing Process Supported by SDProtechnologies
Receive the best business outsourcing services on SDProtechnologies