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What Business Process Outsourcing Can Do to Your Business?

by: jayr123

Posted on: Thursday, October 8, 2015


There is a magic in business process outsourcing. There is a power in it that many small and even large companies are already turning into the outsourcing industry. If you are a business person and wanting to seek more answers about the benefits of outsourcing (including its underlying risks), you come to the right place.

There are lots of ways to define the nature of BPO. But simply put, BPO is contracting with a third party company to do the job for you. Most small and medium scale businesses outsource the tasks for their websites. This includes web development, content writing, graphic and logo design and others. Other large companies are also supporting virtual assistants and call center services.

Why there is a need to outsource?

Outsourcing has helped a lot of companies ever since the 21st century. It clearly cuts costs and increases revenue without expanding expenditures. But aside from that, business process outsourcing has aimed towards boosting quality, productivity and improving innovation of the company.


There are several pros and advantages of hiring a BPO partner, which include:

  • Lower labor costs. Outsourcing has been able to hire contracted employees rather than full time or part-time workers. Offshore outsourcing is also taking advantage of getting foreign workforce than domestic workers due to lower labor costs.
  • Cheap operational costs. Partnering with an established outsourcing company will really save you big bucks from operational costs. In fact, you can expand without spending a lot.
  • 24/7 support. Outsourcing from different countries makes you reap the benefit of operation beyond working hours. With different time zone, your business runs while you are sleeping. This system works best for e-commerce and customer support industry.
  • Focus on core objectives. You can outsource boring, time consuming and repetitive tasks like data entry and online research to better focus on the core aspects or areas of your business.
  • Increase revenue. With the clear cut costs and more hours of serving, you can expect higher revenue without extending your expenditures.


The benefits of getting an outsourcing partner have also some drawbacks. Most problems associated with outsourcing depend on each business and how they set up the partnership. However, there are some common risks pertaining to it, including:

  • Slow response time. With the nature offshore outsourcing, expect some interference like clarity and delivery of instructions, difficulty of tasks, as well as sudden intermittent internet connection.
  • Less customer-focus. With the lack of business knowledge, outsourcing company partner may deliver a sub-standard, low quality outputs. But with the enough time to introduce business, proper delegation of tasks and justifiable time frame, you can avoid this one.
  • Other factors. If you unfortunately partner with an incompetent BPO company, there may be issues related to language, culture and classification of tasks. You may also lose your control over your business, especially if you outsource all of the areas of your company.

With the probability of risks underlying the business process outsourcing, it is a must that you hire the right business solutions provider. If you want to know more, check out our previous content.

Are you ready to outsource?

According to Statia, BPO market size from 2000 to 2014 has amounted to 28.5 billion US dollars. In a global survey, 57 percent of the global leaders admit that outsourcing has improved their company efficiencies, while 44 percent unwilling to venture in the industry due to lose control.

The benefits of business process outsourcing are undeniable. It is expected that many merchants will turn to this industry. But the question is… are you willing to outsource? Let us know.

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