Is Business Process Outsourcing on the Rise in 2021? – Check Out Here!
It is no surprise how outsourcing has turned into apt choices for organizations for their operations. With the Covid-19 pandemic, we have entered into a new ecosystem; wherein remote works are considered normal.
Now, companies are outsourcing their logistic functionalities even more. Perhaps, this may shut down opportunities for the onsite team, yet it is highly profitable when you see the other side of the coin and how it is exceptionally helping companies to do better.
Regardless of the work nature of a company, i.e., whether the team is working from the office or working from home, companies still need some reliable third-party service to handle their functionality available in the outsourced services.
So, it is clear that business process outsourcing services (bpo) have always been the perfect solution for the companies, making BPOs ruler to the date. Yet, to determine whether BPO will thrive in 2021 or it will remain the way it has been, you need to take a plunge further below.
But First, How BPO Operates?
BPO typically operates in two segments which include:
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- Back office: Back office generally handles finance, accounting, human resources, payrolls, etc.
- Front office: Whereas front office covers the call operations, including inbound and outbound calls, customer support services, marketing/sales, and other services related to customer care.
In many circumstances, both segments are highly useful for the companies. They are required the same as they were back in 2018, 2019, or 2020. That is the accurate reason why BPOs are expanding their scale and encouraging companies to delegate their business functions to an outsourcing company. And so, BPO will continue rising in 2021 and the future.
Top Reasons Why BPO is Considered as the Fastest Growing Industry
BPO has economic advantages
Business Process Outsourcing (BPO) has always been one of the most economical preferences for businesses and organizations based in the UK, US, EU, and many more countries. They tend to outsource their functions to a third-party vendor because they don’t have to create their premises, saving a huge amount of money.
Thus, the former doesn’t have to invest funds while the latter earns their legitimate charge leaving both the offshore BPO and the company happy.
Outsourcing is cost-effective, and hiring an offshore company seems a perfect choice for the companies. And the ongoing pandemic has accelerated the worldwide requirement of BPO even more, cracking all the code of boundaries and technologies, giving a booming future to the BPO industry.
The government backs BPOs
Now that BPO has various economical perks, the industry is highly encouraged by the government. Government implements relevant programs and policies, which is good for the nation.
BPO provides benefits to the government in several aspects, such as the government shares the BPO companies’ profit in the form of tax, employee tax, house-keeping tax, and much more. Upon this, BPO provides a spectrum of job opportunities to people regardless of their degree and qualifications. One more feature that plays a vital role in creating profits for the government is the Data Privacy Act.
With this act, international quality data privacy standards are now being adopted by many offshoring countries allowing companies the flexibility to obtain new clients that have tight adherence to the protocols and the information.
BPOs are unstoppable
Despite pandemics leaving the entire globe to economic drought, BPOs are continuing with their impeccable work. BPOs are effortlessly performing their work remotely, creating a steady balance between both company and the employees.
In this hyper-competitive world, there is a great demand for a vendor who can take care of the non-core activities on the company’s behalf, and to this, outsourcing is a savior for the businesses. They simply check on the best outsourcing company, and after analyzing everything, they assign their business functions to the outsourcing company. Thus, no matter the situation, BPO will continue doing its prolific work and offering great service to organizations worldwide.
BPOs has a splendid global presence
BPO enables companies to offer services in multiple languages across different time zones. The availability of multiple languages enhances customer experience and customer satisfaction and gives them a more extensive global presence.
Customer experiences are more enticed to your company if they have multiple language options. Their experience turns extra special when they are addressed in their preferred language, filling up communication barriers. Not every individual can understand or speak English fluently, so in that case, BPOs can help you out with multiple language choices.
BPO has a great level of expertise
One of the most typical reasons for outsourcing various businesses is that the companies that offer such services have a greater level of expertise and professionalism. For instance, if a company goes for IT outsourcing, they will seek a company with proficiency in IT services.
Hence, their expertise will be much better than if the organization hires an employee. That is the reason why an enormous number of manufacturing companies opt for software outsourcing instead of hiring personnel for in-house software services.
The Bottom Line
Since BPO has managed the businesses with its sheer adaptability, there is no doubt that the BPO industry is on a spectacular rise in 2021.
Moreover, we live in a technology-driven era that offers various techniques and innovations, including artificial intelligence, marketing automation, and other technologies that help the BPO industry and other industries expand their scale, leveraging all the technologies that emerge today.
With this, outsourcing will grow rapidly in 2021 and the future, at least for the foreseeable future, because it still makes profitable sense for companies to handle their business functions. When we discuss the advantages of outsourcing your business, cost efficiency is the foremost thing that is highlighted.
However, it is not necessarily a cost-efficiency area to consider, and outsourcing is beyond just cost-effectiveness. BPO is adaptable, provides 24×7 availability, offers core competency, and much more that allows you to focus on the other aspects of the business. This is how BPO is rising and will keep growing in the future.