With India reopening after the pandemic, enterprise spending on business process outsourcing (BPO) is projected to increase at a compound annual growth rate (CAGR) of 5.8% to reach $8.8 billion by 2025 as knowledge-based and vertically specific processes are increasingly being outsourced. Over the years, the BPO industry has become one of the fastest-growing industries. Now BPO services are driving innovations and bringing immense value to businesses.
In this article, we will discuss the growth in the business process outsourcing industry, the benefits of business process automation, and how companies can build a better business using BPO & BPA services.
How is the BPO industry thriving in 2021?
As per the Global Industry Analysts report released in May 2021, the business process outsourcing industry is growing at a rapid speed. The market is believed to expand and reach the size of US$230.3 Billion by 2027. Here are some of the findings from the 776-page report:
- The BPO industry in the U.S. has crossed the market of $70 billion in 2020.
- By 2027, the market of China is expected to reach $7.3 billion, which represents a compound annual growth rate (CAGR) of 6.1% per year.
- In addition to Japan, other "noteworthy geographic markets" include Canada, which is expected to increase by 3.5% and 3.9% from 2020-2027, respectively.
- Among other nations, India still holds the position of one of the biggest BPO giants and handles 56% of the world's business process outsourcing.
- India has grown its BPO sector by 50% each year and will soon employ more than 1.1 million people, thanks to its reputation for providing high-quality call centers and customer support.
By early 2025, MarketsandMarkets expects the global healthcare outsourcing market to reach $468.5 billion, compared with its current level of $296 billion. Meanwhile, the global IT outsourcing market is expected to reach $397.6 billion by that point.
What are the services offered by BPO service providers?
Sales Process Outsourcing- A business process outsourcing service provider will help you set a team that will help you convert all your leads successfully. The primary goal here is to build your database of prospects. BPO sales representatives use a specific set of marketing technology tools to find your opportunities. Hiring a reliable BPO service provider will surely take your sales generation and lead conversion to new heights.
Customer Service Outsourcing- By customer service outsourcing, you will be able to access real-time data and reports that can help your business make better decisions. Your outsourced customer service center will keep you informed about everything happening, so your team can continue delivering the results and benefits.
Human Resource Outsourcing- By outsourcing human resources processes, you will get access to a dedicated HR department that can quickly find top talent and get them interested in your company and openings. It will save you from the hassle of finding talented resources for the company yourself.
Operation Management Outsourcing- Outsourcing operations management aims to maximize profit by converting resources into goods and services using as few resources as possible. The team will also be responsible for balancing costs to achieve the highest potential net profit.
Insurance-focused Outsourcing- According to the report, business process outsourcing (BPO) providers and third-party administrators (TPAs) that specialize in insurance offer a wide range of technology that can simplify customer interactions and customer experiences. Many providers can digitize the entirety of the policy lifecycle, from onboarding to claims, helping traditional insurers compete against them.
Many BPO service providers nowadays also offer BPA software that helps in automating financial operations in your business.
Let's find out what business process automation is and how it helps in growing your business.
What is Business Process Automation (BPA)?
An acronym for business process automation, BPA refers to utilizing software to simplify and streamline business processes through automation. BPA involves automating procedures such as purchasing, accounting, analytics, and expense reports. Automating business processes with automation technology simplifies and streamlines business processes. Although automation differs from outsourcing, there are more overlaps than you might think.
The primary overlap between outsourcing and automation occurs because there are two options for business process outsourcing: build or buy it. In simple words, outsourcing involves paying another company to handle specific business processes, while automation involves streamlining your in-house processes. To get effective results, you can consider outsourcing BPA services from any reliable and reputed Software-as-a-service (SaaS) who will help you automate your business processes.
Benefits of Business Process Automation (BPA)
Maintain healthy cash flow by automating bills
It is challenging for businesses to manage their finances without a healthy cash flow. Imagine if your customer base suddenly doubled, how difficult it would be to manage your finances! With so many bills to pay and invoices to send, even small companies would have faced difficulty managing their finances.
With BPA, payment reminders can be automatically sent, and bills can be automatically paid to avoid late fees. BPA automation solutions can manage the entire lifecycle of invoices and payments to provide an accurate picture of your company's cash situation and provide valuable financial data.
Better payroll accuracy
Payroll processing is time-consuming and requires a lot of effort, resulting in adverse effects on vendor relationships and employee satisfaction. Business automation platforms can automate payroll processing tasks like calculating taxes, processing for overtime, and estimating and following up on deductions. Using BPA solutions also removes the chances of human errors and increases accuracy while saving time.
Improved customer satisfaction
BPA customer service platforms minimize missed customer relationship opportunities that can affect your company's image and revenue. You must understand that one bad experience can result in losing regular business, and it can become much more dangerous when shared on social media. But you can easily prevent it by automating customer service or by customer service outsourcing.
Automating customer service workflows is a cost-effective and efficient way to manage customer service processes. It helps in reducing human error and prevents the costs of hiring a service team.
Accelerate business growth by automating reports
It is critical to accurately monitor KPIs to grow your business sustainably, set realistic targets, and meet your business needs. BPA platforms can generate detailed reports with metrics that let you measure how you're doing against your marketing benchmarks.
With BPA reporting, you can get a holistic view of where you're excelling, where you need to improve, and where you have the potential to grow. No matter what your goals are, you'll be able to accomplish them more quickly.
Hassle-free employee onboarding
The onboarding process is crucial to showing your team members that they are essential. Yet Human Resources is often overwhelmed by paperwork and miscommunication between departments, increasing the rate of human error and leaving new hires hanging.
Automation can automate work-related tasks to reduce time-consuming tasks and enable new hires to start working sooner, increasing productivity and efficiency.
How to build a better business with BPO & BPA?
Find a reliable and trusted BPO & BPA partner.
Finding a great BPO and BPA partner requires thorough research. Before starting the process of BPA or BPO outsourcing, your organization must know its financial goals and overall long-term goals. This discovery can help your organization find an outsourcing partner who will meet your business processing needs. Establishing a business growth plan and identifying areas requiring outsourcing and automation can help your organization streamline the processes and perform the operations precisely.
Analyze the processes that can be improved using BPO & BPA
Business processes have both core and non-core functions. We recommend separating these processes and evaluating each processing step separately to gain an overall perspective on needed improvements. Doing this will again help you find the methods which are in the utmost need of automation.
Make a realistic BPO & BPA implementation plan.
Analyze how much your business is spending on processes like payroll, accounting, inventory and software updates, etc. The result will help you compare it with the cost of automated systems and decide which method is best to be automated or outsourced. It will also result in better productivity and performance.
And finally, considering BPO & BPA for your business processes will lead to increased efficiency and will upgrade your business to constantly changing business environments. Moreover, it will help your business effectively meet your clients' requirements.
So if you are looking for BPO services that come with business automation services, Go4customer is the best choice for you. We provide complete IT outsourcing and business process automation solutions for your business. To know more about our business process automation and BPO services, contact our experts at email@example.com.