Contracting work out to business process outsourcing companies for improved efficiency and reduced cost is fast becoming a requirement for all organizations big and small. Era Biz has extensive experience providing IT BPO services to organizations in the form of long and short-term projects over the past 11 years.
Business Process Outsourcing (BPO) is defined as the delegation of one or more (often IT-intensive) business processes to external service providers who will own and operate the process on behalf of their client. The outsourced processes are managed by the business process outsourcing companies based on strict metrics and guidelines as defined by a contract. It is also necessary to understand what horizontal and vertical BPO are.
Horizontal BPO is where the business process is outsourced horizontally across all departments or product lines of the client. An excellent example would be, outsourcing all IT operations or customer service operations among all departments.
Vertical Outsourcing is where a business process, where specific industry knowledge is required, is outsourced from one specific department or product line only. An example would be outsourcing the software being developed for the HR department.
As can be expected, organizations often outsource in a mixed manner with both horizontal and vertical BPO elements together
There are many advantages to working with Business Process Outsourcing Companies.
Outsourcing to a company with a specialized field of expertise, especially to a country with lower living costs, will help reduce costs significantly. There may be little to no hiring cost and overhead costs and in addition, the costs for resource materials (such as laptops and software) may be eliminated.
Through increased experience and specialized skillsets in a certain field or task, workers in BPO companies are able to adopt new and more efficient best practices and automate tasks through higher technology. This will provide improved productivity and efficiency.
Organizations are able to achieve better focus on their main objectives through outsourcing auxiliary processes. As usually core processes are the ones focused on key organizational objectives, this allows the organization to have greater visibility and growth in the direction they choose.
Business Process Outsourcing companies allow organizations to take advantage of natural advantages such as lower cost, local knowledge, human resources, and material resources through globalized outsourcing of business processes. This means taking advantage of availability wherever they are.
Business Process Outsourcing companies offer access to a large pool of talented personnel with skillsets that may not be easily accessible, costly, or less available on the market. This allows organizations to reduce the cost and effort of searching and hiring such personnel for their tasks.
Business Process Outsourcing allows organizations to take advantage of an external team to adjust their team size and operational tasks far more easily as demands arise. This will improve resource efficiency for the organization while keeping it ready to handle any situation that may occur.
Business Process Outsourcing companies follow a basic structure in what processes they specialize in. This structure segregates processes into two basic sectors: Back Office Operations and Front Office Operations. Most companies will specialize in either the back or front office operations, while very few do both sides of the BPO structure.
Includes Back-end Processes with no direct contact with the client’s customers such as HR, IT services, Accounting and Purchasing, etc.
Includes front-end processes directly dealing with the client’s customers such as customer service, customer support, and marketing.
Notably, in the case of front-end operation Business Process Outsourcing companies, the phrase “operating on behalf of” becomes of key importance, as any direct customer contact will need to be clearly stated to be under the name of the client and not the BPO company.
Today it is not an exaggeration to state that even the largest organizations are able to operate with just a small skeleton crew for in-person activities and save a hefty percentage of their costs through business process outsourcing. There are many types of services that business process outsourcing companies (BPO companies) will specialize in. However, 7 of them are the most common.
While almost all services offered by Business Process Outsourcing companies (BPO companies) have a strong technology requirement; there is a high demand for IT processes such as software development, service and maintenance, technical support, and more. Some organizations also request for their entire IT department to be outsourced for all operations that can be handled through online or remote assistance. This saves them valuable resource space and funds.
A number of HR tasks are often outsourced to BPO companies with a specialization in human resourcing. Tasks may include areas such as Payroll, Benefits, Recruitment, Candidate Selection, Learning and development, and more. This allows the organization to focus its HR activities on areas that need in-person intermediation or cannot be outsourced.
Many organizations outsource their entire marketing activities to third-party service providers (BPO companies) and monitor the activities through CRM software. This allows them to operate the organization on a reduced staff basis, reducing employee pay and benefit costs, and spending more on product and service improvements.
A number of major organizations contract out their customer service activities to business process outsourcing companies (BPO companies) offshore to avoid employing a large host of expensive employees. They are also able to increase productivity and reduce costs by relying on the different employment laws in lower living-cost countries.
BPO companies specializing in finance are often able to fully take over the accounting activities of large organizations allowing faster accounting and reporting through larger specialized teams that are more task-oriented. This allows speedier turnaround times and quick decision-making.
Organizations involved in data processing are outsourcing their data manipulation, data analysis, administration, and management sections to technical and research-oriented BPOs who are able to reduce costs and increase client retention.
Supply chain management can be outsourced to BPO companies in the locality where the supply is obtained to minimize costs and risk. Local service providers are able to better detect ways to make the supply chain more efficient in a competitive manner
BPO operations can be actioned in 5 generalized key models:
This is when a large company contracts out the work from their clients to many specialist companies within their country and around the world. This benefits the client, the organization, and society.
A joint venture splits a project’s assets, profits, and losses. Some contracts also stipulate the sharing of personnel, resources, and time until the end of a project allowing the reduction of risks to a single party.
Offshoring is where an organization opens up branches or independent subsidiary organizations in other nations around the world to take advantage of lower-cost labor and/or specialized skill sets.
Sometimes called a Staff-Leasing model, this allows organizations to fill their short-term requirements for specialized staff members by augmenting their team with skilled personnel from a BPO Company.
Era Biz has been fully established as an offshore IT outsourcing company since 2011. It has extensive experience as a business process outsourcing company for many onshore and offshore projects over the years.
We provide the best quality for the most affordable cost. Unlike other IT service providers, Era Biz operates on the vision of never compromising on quality while offering the best possible rates. This is why many of our clients keep coming back to us for their projects.
We provide the best collaboration for projects through enhanced communication supported by fluent English-speaking developers, increased efficiency and decision-making through task-tracking software, and better motivation and updates through regular meetings, brainstorming sessions, and more.
Our team members are each highly skilled in multiple technologies while being expert in one to two of them. Most have over 5 years of experience in multiple projects both locally and internationally. The few others all have over 4 years of experience, though with skill sets that are rarer and highly in demand. They also receive mentorship from our seniormost developers and are able to gain active experience very swiftly. In addition to this, we have access to a large pool of talented Sri Lankan developers and are able to hire more members as needs arise.
With all the advantages that Era Biz can offer it is undoubted that outsourcing with us can make your IT business processes most efficient and productive while lowering your costs. So what are you waiting for? Contact us right away to contract with one of the best business process outsourcing companies in Sri Lanka.