When you’re a startup company, you would probably want to do everything in-house. Aside from fund allocation, another reason behind this trend is the convenience of managing a small brand when working with a tight-knit team.
While it seems like the best choice for a budding eCommerce company, expansion and growth usually demand more. As companies increase their employees and clients, additional factors come into play. Outsourcing back-end processes such as data entry and product fulfilment soon become a better option.
Business process outsourcing, commonly referred to as “BPO”, refers to a company contracting its business functions to an external service provider.
A few business process outsourcing examples include payroll management, product listing, data entry, web development, Search Engine Optimization (SEO) copywriting, and even accounting or bookkeeping.
Over the years, more brands have embraced the convenience brought by outsourcing. Now included in the many traditional tasks like data processing and payroll processing are modern services recently offered by a typical BPO outsourcing company (like social media marketing and call center operations).
There’s more than a single way for a business to start outsourcing, depending on the scale of the company and the industry it’s in. For example, a startup company may be inclined to outsource both back-office and front-office tasks because of their lack of resources. On the contrary, an established company may start to consider outsourcing benefits as more valuable, which includes getting more precise work for less time and cost.
Outsourcing was previously an option to save money. However, in more recent times, it’s now viewed as a critical tool in innovation. The shift in industry thinking led to more businesses relying on automation to get things done.
BPOs are becoming more popular than ever. If you’re considering it for your own business, we listed down the top reasons why you should start outsourcing sooner.
Both established and fresh businesses could benefit from outsourcing their tasks. It’s fitting to see BPO as a way to control a company’s future integrity. One of the top reasons why companies decide to outsource is the potential to reduce expenses significantly.
Previously, BPOs were for menial tasks like data encoding and reports generation. However, the option to subcontract became even more reliable and popular come the newer years. Outsourcing companies continue to adapt and innovate ways to offer their services that save clients’ time, effort, and expenses. Any good outsourcing company can provide both core and non-core services with a lower cost while maintaining the same level of quality and efficiency.
Running a business is no easy feat, especially if you’re handling all the repetitive tasks internally. You run the risk of spending too much time and effort on operations, leaving little to none for strategy and growth-pursuing.
BPO companies lend a hand to brands in taking care of non-core business functions, such as printing, billing, and labelling. In doing so, leaders have more freedom to avoid spending on expensive equipment and instead re-allocate resources for creating data-driven strategies for expansion.
While there’s nothing wrong with investing in equipment or facilities, it can be costly and difficult to maintain in the long run. In the end, outsourcing is still the best route to take if you want to put growth at the top of your priority list.
Handling back-end tasks internally can translate to missed opportunities on investment, process improvement, and training. A huge bulk of a brand’s capital falls on maintaining the processes and running the business.
With BPO, companies can aim for higher expertise and greater success by focusing more on customer experience, marketing, and business strategies. Once these organizations establish their non-core functions, handing over the tasks to a subcontractor will free up their plate to an overwhelming degree. Companies can get more things done while still running operations efficiently.
Furthermore, hiring outsourcing companies to do other work can space up your employees’ daily responsibilities, who can then focus their efforts into more crucial tasks.
Depending on your industry, staying updated on the latest technology trends for eCommerce may not be a priority. However, you could be missing out on more efficient ways of working brought by constant innovation. In contrast, BPO companies are always on the lookout for cutting-edge capabilities.
When you outsource, you help your business keep up with the ever-evolving world of technology without dealing with high costs, tedious setups, and rigorous staff training.
It’s almost guaranteed that every good outsourcing company will take extra steps to implement forward-thinking strategies and advanced capabilities for their clients. The rewards for both the subcontractor and the client are endless.
Another factor that makes an outsourcing business appealing is the guarantee of expertise. You’re assured that the professionals dealing with your business functions are trained and skilled in the field; so, you don’t have to hire in-house talent and spend on training.
An example of this scenario is outsourcing financial companies that are specialized in handling data with high security. Most companies don’t have the resources nor the time to setup their own secure database.
In the coming months, the Business Process Outsourcing market is expected to grow by a considerable degree. It makes sense for business leaders to entrust critical and non-critical functions to companies who boast their expertise in assisting companies. In a time of slowed-down economies and work-from-home setups, cost-cutters like BPOs make it easier for leaders to communicate with one another and delegate tasks.
So if you’re still on the grey area about outsourcing your business processes, start to weigh your options. List down the pros/cons and possible consequences and benefits. In the end, choosing who to hand over your business tasks to is a decision that will depend on your goals, market, and priorities.