The business world has been evolving for centuries. People have been finding new and inventive ways using which they can make more profit. Today, there are thousands of companies with millions of dollars in revenue and hundreds of organizations with a turnover of over billion dollars. It won’t be wrong to say that outsourcing has been a major role player in the shaping of the business sector.
Outsourcing, a delegation alternative that was started as a way to save operational expense has now become an additional business strategy for corporations of all sizes. The transition was slow at the initial stage. However, with the dawn of digitalization, the entire rundown of the outsourcing commenced at a much swifter pace.
With the technological boom, the entire world began to shrink and outsourcing helped a company owner in the USA to avail uninterrupted and first-string service experience from a vendor in India. Indian call center agents started assisting the American and European customers and offshore business process outsourcing became a trend.
Apart from India, some of the most favorable outsourcing destinations in the world are Malaysia, China, Philippines, etc. Let’s see how these BPOs have completely turned the business proceedings upside down in the last two decades.
The cost advantage
No doubt, curtailing the operational overheads of businesses is perhaps one of the most attractive and compelling aspects of outsourcing. When outsourcing started, in the early 70s, the big corporations started delegating their tasks like manufacturing, back-office, etc so as to save the related overhead expense.
Not until the early 90s, outsourcing was regarded as a business strategy. With a lot of internet-based businesses starting to emerge in the late 90s, outsourcing cropped up as the ultimate weapon for the companies to win handsome returns. Eventually, companies started outsourcing their business functions like telemarketing, lead generation, customer service, market research, content creation, SEO, etc to the firms with immense domain prowess. Reason?
- These specialized vendors can offer first-string service level to the businesses without any friction.
- Organizations save a colossal sum of time and money.
With outsourcing, no business has to set up and maintain the workforce and infrastructure related to the particular delegated tasks. This cost-benefit plays an integral role for companies looking to raise their profitability.
More than 70% of the businesses of all sizes have handed over their functions to business process outsourcing companies in one way or other. Still, there are some business owners and managers who think that the internal handling of such tasks is more preferable. They fear that the handing over the business tasks to an external third-party service provider can make you lose control of the unit altogether.
Now, outsourcing is only profitable if you are crystal clear about your business requirements and the vendor you are planning to tie-up with. This is why the top cats in every business sector are outsourcing their one or more units to BPO firms. Owners of these organizations know that the level of service that proficient and experienced service providers can render on a consistent basis is not possible while managing an internal team/facility.
Also, the benchmark in the service standard that these professionals are able to set is unparalleled. So, outsourcing assures an ace-level service experience for your business if you have been truthful to your company’s requirement and have thoroughly checked your vendor’s repute in the market.
Corporations that were eying to provide their customers around-the-clock assistance had to face the dilemma of whether to invest a heavy amount in the internal workforce or to hire an external vendor. When managing the facility internally, double investment is required as two teams on the rotational shift can assist the customers. This is a costly and quite an overburdened task to manage inside the company. Hence, most of the companies reach out to the BPO service providers so as to render their customers with uninterrupted assistance without any hassle. These BPO firms are known to have several agents who work on the rotational shift to match the expectation of many businesses simultaneously.
In the era where everything from a pin to a plane is being bought on the smartphone, customers’ expectations have gone remarkably unpredictable. With power in their hand now, customers are expecting nothing less than an unmatched service experience. This said, businesses are therefore making sure to tap every channel available where customers exist. Be it the social networking sites, email, websites, blogs, etc, business process outsourcing firms know exactly how to offer your customers impeccable service experience.