Business Process Outsourcing is the process of outsourcing the operations and responsibilities of specific business processes to a third party service provider. Services that are most likely to be outsourced are those not labeled as core business functions.
Outsourcing is a management process in the globalized business context that has been well understood, tried and tested by successful organizations across the globe. The advancements in Information Technology has led to this industry growing faster than ever with the reduction in costs combined with the ability to have services provided from remote locations overseas.
What Services are Being Outsourced?
BPO outsourcing services primarily include back office operations. In the past outsourcing was limited to inbound and/or outbound voice type services. Inbound services dealt with customer service and technical support while outbound services usually included sales and billing services. Businesses are now confident in expanding their scope of services they are willing to outsource. Here are the top 10 BPO outsourcing services for 2018:
- Web Design – 71% of companies outsource web development projects including Apple inc. and it has resulted in higher profits.
- Software Development – 56% of startups have outsourced software development to an external partner as a way to handle their capacity issues.
- Telemarketing – Pay per lead is gaining huge popularity with the opportunity to gain qualified leads with little risks.
- Customer Service – It is expected that every company provides 24/7 customer service in 2018 which can be extremely costly having to cover midnight hours and overtime of in-house employees.
- Virtual Assistance – There are an estimated 3.9 million virtual secretaries and administrative assistance around the world.
- Bookkeeping / Accounting – Offshoring finance and accounting services comprases about 10% of the $980 billion BPO market and is expected increase 70% by the year 2020. Taxation and financial statement preparation are the most common processes to be outsourced.
- Data Entry – According to market trends, businesses like e-commerce, legal, online retail portals and manufacturing mostly outsource their data entry tasks because of excessive and bulk range of data that needs to be processed, managed and represented as per organization protocols as well as understanding.
- Medical Billing – 49 percent of hospital chief financial officers acknowledge that outsourcing (including overseas outsourcing) in organizational claim processing will become an increasingly viable alternative as 2018 progresses.
- Digital Marketing – In 2017, 68% of agencies outsourced SEO to a white label SEO provider, 62% outsourced content marketing services and 48% outsourced pay per click marketing.
- Human Resources – According to Global Industry Analysts, the BPO market for outsourcing HR services is expected to reach $54 billion by 2020.
Businesses continue to see that finding talent is not only difficult but also costly. By hiring a BPO outsourcing services the company is not hiring an employee but hiring a third party to complete a process. Doing so greatly increases productivity, reduces costs and just overall improves their business processes.