Business Process Outsourcing (BPO) is when a company hires outsourcing companies (like Ascension 6) to perform their non-core tasks so that they can focus on their core competencies.
Initially outsourcing began in the manufacturing industry as manufacturers started obtaining supplies or cheaper labour from external organizations. Today BPO has extended far beyond this. Companies now hire external organizations to complete in-house services. Many processes that are necessary for the successful running of a business have nothing to do with a businesses’ core functions. However, these can now be handed over to a third party to oversee. Over time, BPO has expanded so much and organizations of all kinds make use of BPO services.
Types of BPO
BPO can be divided into subdivisions, which are all based on the service providers’ location:
Nearshore outsourcing: This occurs when a company hires services provided by other companies in neighbouring countries.
Offshore outsourcing or offshoring: Offshore outsourcing is contracting with outsourcing companies in a foreign country (such as hiring Ascension 6 which is in Vietnam for your company in Australia).
Onshore outsourcing: An organization outsources from a service provider in the same country.
What BPO offers?
There are two main areas of work that outsourcing companies provide: back-office and front-office functions. Back-office includes human resources, IT, accounting, and front-office usually consists of marketing, sales, and customer services.
Although it is common for companies to hire outsourcing companies to perform their non-core functions, companies may also outsource critical tasks such as IT, customer services and marketing strategists. Both are important elements for companies to stay competitive in this economy.
How it works?
A company identifies and evaluates the functions that can be outsourced based on the pros and cons of outsourcing the task. A company needs to determine whether passing that task to the third party is the most beneficial for the organization. Once you determine if it’s beneficial to pass along the task, you must find a suitable provider to do the work. Expect some time training the new provider in the task that you wish them to complete. It will take some time to adjust from this task being completed inhouse, to external teams completing it.
A company will make different decisions regarding outsourcing depending on their targets and requirements. Take start-up companies for example, they usually outsource back-office as well as front-office tasks because they may not have enough in-house staff to carry all the work. On the other hand, established businesses may shift some of their tasks to outsourcing companies who could perform better at a lower cost.
Why use BPO service?
There are numerous reasons. Firstly, you can save money and time. While your outsourcing companies carries out your non-core tasks, you can dedicate that saved time to manage tasks related to your business’s functions. Secondly, you do not have to worry about a shortage of manpower, because you now have a qualified working team to help you
BPO could be the best way to maximize efficiently and productivity for your company. If you are looking to offshore your outsourcing requirements from within Australia, Ascension 6, may be the perfect outsourcing provider for you. Get in touch with us to find out more, at [email protected].