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Go4customer Blog

An Insight into the BPO Industry


Business Process Outsourcing or call center outsourcing is the contracting of non-core or non-primary business activities to third-party providers. Today, there are myriad BPO outsourcing companies that provide services like accounting, Human Resources (HR), payroll, and customer/call center relations. Many businesses are turning their heads towards this industry and leading their non-core market efficiently.

Why are Businesses Heading towards the call center services industry?

The reason for the companies to outsource their business activities is quite simple. BPO or Business Process Outsourcing reduces the work burden on business owners and give them more time to concentrate on the core aspects of the operation. BPO outsourcing companies already have relevant experience in providing various services and they are also a more convenient option. There are plenty of advantages of outsourcing your business processes. Some of them include –

Cost Reduction

Outsourced customer service helps organizations in cost reduction and saves money. This is basically one of the most important reasons for companies to outsource. BPO has given rise to employees, available at cheap wages which subsequently results in huge cost reductions and increased revenues for the company.

Improved Productivity

BPO enables companies to concentrate on core business areas. Therefore, executives can spend more time in detail management and formulate strategies. BPO helps executives in exploring new revenue areas, focus on customers, and accelerate other projects. And this leads to an improvement in productivity. Better skilled or educated people perform tasks efficiently and improve productivity.

Optimum Utilization of Resources

One of the most important advantages of BPO is the optimum utilization of resources. BPO capture efficiencies and reallocate resources. Thus, it leads to increased productivity and efficiency. In addition, the adoption of sophisticated technologies and the availability of skilled employees also lead to the utilization of resources and productivity.

Sophisticated Technology at Low Price

The leading area of outsourcing is technology. The technology makes most of the work of an organization pretty simple. However, investing in new technology is often risky and costly. The technology market is developing rapidly and it is a bit difficult to keep the pace of the latest solutions and innovations. Therefore, outsourcing to BPO companies that have relevant experience and remain updated with technological solutions is a true advantage.

Focus on Core Business

An effective business strategy is important to achieve the desired goals in business. Since considerable activities, such as operations, installation, and management of a system of the business is outsourced to BPO outsourcing companies, the top management can better focus on core operational areas. Thus, it leads to increased employee productivity and makes them better and informed on how to make business decisions.

Excellent Employment Opportunity

The BPO industry is among the highest job providers in most of the countries. In fact, it is also ranked second in terms of the jobs created in Asian countries. One of the major reasons for employees to work in this industry is remuneration. There is no doubt that the BPO industry has provided jobs to loads of youngsters and changed the GDP of some small countries.

Great Source of Customer Feedback

The BPO employees continuously remain in direct contact with customers, as a result, they receive feedback (be it positive or negative) about services and products. In turn, this valuable feedback helps the company improve its services. 

Cater to Varying Customer Demands

This is one of the greater advantages of outsourcing the processes. Many BPOs provide flexible services to the management to cater to the changing requirements of customers, and to support joint ventures, consolidations, and company acquisitions.

Business Domains Served by BPO Industry

Nowadays, outsourcing BPO services has become an important part of almost all of the businesses. The industry provides cost-effective services to most of the businesses. The business domains which are covered in the BPO industry include –

Financial Services – Payroll processing, bookkeeping, financial analysis services

IT/ITES – IT staffing, helpdesk services, software development, infrastructure management services

Call Center Services – Telemarketing, email support, technical support services, inbound and outbound call centers, and more.

Healthcare Services – Medical transcription services, teleradiology, healthcare claims adjudication

E-commerce Websites – Refund processing, online ordering, chat process

Retail Services – Status checking, ordering

Travel Industry – Cancellations, bookings

Telecom Sector – Complaint processing, service information

Educational Institutions – Fees processing, course information

Manufacturing – Ordering, help services, component information

Recommended Article: Debunking the Myths about Business Process Outsourcing

The Bottom Line

These advantages are enough to attract a lot of businesses towards the BPO industry. Most of the leading organizations are offering their non-core activities to experienced BPO outsourcing companies, as they know these companies have better hold in the market. So it is better to take an outsourced customer service and grow your business by focusing more on the core activities. Go4customer will guide you if you need anything from a call center in India.

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