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Advantages and Disadvantages of BPO (Business Process Outsourcing)

Posted by Rahul Garg
bpo

Outsourcing call centre services is a common business practice, which maximum organisations employ these days. To put it briefly, business process outsourcing is deemed as the key to a stronger customer base and stupendous business growth. Generally, new entrepreneurs have questions like ‘What is BPO stand for?’, ‘What is BPO?’, and so forth.

Well, BPO stands for business process outsourcing and it means contracting noncore business functions to a third-party company so that better growth rate can be secured. The fact that will leave you stunned is BPO is a 6 trillion industry.        

As we know, everything has some fors and againsts, so there is a possibility that some advantages and disadvantages of BPO are also present. Today, we will discuss the same:

Benefits of BPO:

 

Cost-effectiveness

For starters, the major benefit you can gain by means of business process outsourcing is ‘Cost-effectiveness.’ BPO companies offer impeccable services at pocket-friendly pricing, and the factor that makes this possible is high availability of resources and proper management.

Read More: Why do Business Owners avail 24/7 Answering Service from BPO Firms?

BPO service providers manage their resources in such a way that ensures they can meet their clients’ expectations with aplomb. Plus, it is made sure that everything goes in accordance with clients’ business requirements. According to reports, businesses save 30% of their investment money after availing services from BPO companies.   

Skilled Manpower

To get any job done, having a skilled person at the task is important, right? And getting a myriad of competent people on board isn’t easy and cost-effective. This is where the salience of business process outsourcing grows because BPO companies have always been known for their skilled manpower, which makes sure set objectives are met with perfection.    

Another perk that is worthy to be mentioned is hassle related to overstaffing and understaffing also gets vanished.   

For instance, if you decide to outsource supply chain management, all the related tasks will be taken care of by skilled supply chain managers. Same goes for other services.

24/7 smooth operations

Another attention-grabbing aspect that makes business process outsourcing an ideal choice is 24/7 operations. Goes without saying, operating day in, day out is paramount for achieving the goal of phenomenal business growth.

The fact that causes frustration, especially to small companies is round the clock business operations demand a hefty investment, which can shake the budget levels. This is where opting for business process outsourcing seems like a perfect choice.

Let’s say, you avail call answering service UK from a recognised BPO company, the thing you will witness next is smooth call handling operations 24/7.        

BPO service providers never confront scalability related issues, and all the credit goes to their enormous industrial experience.

Demerits of BPO:

 

Less control over outsourced tasks

The negative factor that stays hidden under the shadow of advantages of BPO is, ‘Less control over outsourced tasks.’

For business process outsourcing, both the company and vendor have to agree on some terms, after that, the latter takes control of outsourced tasks completely and does whatever it takes to meet SLAs… Jeez! Don’t think in a negative manner.

Sometimes, the client company wants some changes in the outsourced call centre operations. However, the signed agreement doesn’t let them do that, which sometimes yields trouble at the later stages.

Read More: The Upcoming Definition of Leadership From BPO’s Perspective

To avert this disadvantage of BPO, business owners are suggested to join forces with that service vendor, which offers the flexibility to make changes when the situation demands the same.            

Hidden costs      

In the business world, trust is everything as its strong presence guarantees you can hope for a bright future or vice versa. Usually, SMEs try to reach out to the vendor that offers BPO services at an unbeatable price. By all means, striving for availing services at a nominal rate is a good business practice, but that doesn’t mean you can let your guard down.

Because of the aim to avail BPO services at a lower price, companies partner with swindler vendor and then encounter the hassle of hidden costs in the later stages. In a nutshell, cost-related issues have always connected with BPO as a negative factor.

To stay away from the problem of being asked for additional money, it is significant to discuss the pricing model thoroughly before handing over the contact.

Final few words:

With all these advantages and disadvantages of business process outsourcing, we just tried to show where it can benefit or harm your business. Indirectly, we also tried to make you understand the importance of availing services from recognised BPO companies.

Read More: What is the difference between Call Centre and BPO?

Surely, we didn’t try to convey a message that running an in-house call centre is a far better option than outsourcing. All we want to say is just stay more careful while availing BPO services.

Thanks for reading!

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