In 2023, the global business process outsourcing industry market size was worth $350.2 Billion. Businesses are
diligently looking for outsourcing partners because it spares them with enough time to focus on important tasks. When
sub-processes are outsourced, executives are left with enough time and resources to focus on core business processes.
Organizations also outsource processes that need to be executed properly, but they lack SMEs to implement them. By
outsourcing innocuous processes like bookings, payroll management, cold calling, and preparing interview schedules,
enterprises can help their valuable executives focus on important tasks.
Table of Contents
- Why do organizations Choose Business Process Outsourcing?
- Business Functions that can benefit from Outsourcing
- Business Development & Marketing
- Human Resources
- Operations
- Administration & Finance
- IT & Data Security
- Business Process Outsourcing Examples
- Final Thoughts On Business Process Outsourcing
Why do organizations Choose Business Process Outsourcing?
The reason for outsourcing varies with companies but there are some specific processes that every organization can
outsource. An enterprise is made up of functions that come together to serve one end goal. Business Development &
Marketing, Human Resources, IT, Admin, and Finance are some functions that exist in every organization.
While the dependence on technology has increased, the changing nature of the job leaves employees with less time to
serve their functions efficiently. By outsourcing not-so-important processes from all functions, organizations can help
their valuable employees focus their efforts in the right direction.
Helps Executives focus on Core Processes: When leaders are left with time to focus only on core business processes, they
analyze available data and discover new avenues of growth. By outsourcing sub-processes, organizations can help their
thought leaders think clearly.
Boosts Efficiency and Effectiveness: The job of a marketer is to get the interview publish and share across all channels
and not fixing appointments and doing follow-ups. By outsourcing such tasks, marketers can focus on work and come up
with effective content.
Improves Revenue: Yes! Outsourcing is cheaper and improves revenue. India is the most preferred location for outsourcing
back-office tasks; the cheap labor and the English-speaking population offer incomparable service and improve the bottom
line as well.
Improves Processes: Outsourcing can help organizations improve their processes by relying on a partner who brings in
that expertise. Most outsourcing companies help clients improve their processes by applying their quality
improvement knowledge. Organizations can utilize this expertise to boost their process efficiency and improve
productivity.
Business Functions that can benefit from Outsourcing
Business Development & Marketing
Business Development and Marketing functions are responsible for identifying potential prospects, generating leads, and
preparing collaterals. While the business development team manages all the outreach tasks that include data collection,
cold calling, and follow-ups, marketing is responsible for creating appealing content, putting it in the world and
helping the organization communicate its brand value correctly.
To make business development and marketing teams more efficient, organizations can outsource the following processes and
leave professionals with more time to concentrate on client service:
Market Research: Just when market research is outsourced, the business development team is left with enough time to
create effective proposals that cover all touchpoints and offer a clear understanding of the services.
Content Creation: When blog writing, link building, and video editing works are outsourced, marketers can use the
available time and resources to collaborate with industry leaders. The spare time can be used effectively by the team to
create campaigns that will effectively portray the brand’s reputation.
Data Entry: Business Development can leverage the maximum benefit out of BPO employees. When the data entry task is
outsourced to industry experts, BD can expect quality and refined data to work upon.
Lead Generation: Cold calling and email marketing can always be outsourced, leaving the team with enough time to work
on collaterals and proposals.
Appointment and follow-up activities: Both business development and marketing functions can outsource appointment and
follow-up activities to save time. Later the resources can be used for building valuable relationships with businesses
both online and offline.
Human Resources
HR is the backbone of an organization; not only are they responsible for hiring efficient people, but they are also
responsible for creating policies that are just for both employees and employers. Human Resources always finds
themselves juggling between talent acquisitions and maintaining employee relations.
By outsourcing the following processes, organizations can make their human resource function more effective and
efficient:
Employee Verification: In times of illegal migrants and terrorist activities at the peak, it is indispensable for
enterprises to conduct employee verification. These verifications require reaching out to previous employers and local
police stations, which is not something that requires help from professional executives. These processes can be
outsourced to agencies that can carry out the verification in bulk from time to time.
Payroll Management: All processes that are repetitive and require no guidance from a subject matter expert can be
outsourced, including payroll management. Since organizations have more salaried employees than contractual ones, it is
easier to outsource these processes without affecting the day-to-day business.
Hiring Operations: Organizations that need to hire hundreds of employees from time to time can outsource hiring
operations to industry leaders. Hospitality and entertainment industries can easily outsource their hiring operations to
ensure they are never lacking resources.
Must Read: 5 Things To Keep In Mind Before Outsourcing Your Contact Center
Operations
It is the day-to-day operations that are repetitive in nature that need to be outsourced at the earliest. Various types
of BPOs have invested heavily in acquiring expertise in repetitive tasks, which is good for bigger organizations. By
outsourcing repetitive tasks to Subject Matter Experts, enterprises can save themselves from monotony and focus on
innovation.
Order Processing: Be it B2B or B2C, order processing can always be outsourced to BPOs. The scope of business process
outsourcing related to order processing is high and impactful because countries like India and the Philippines have
affordable English-speaking talent.
Onboarding: Be it a restaurant or cab aggregator entity, they can outsource their lead generation and onboarding tasks
to contact centers. Cost-saving is not the only feature of BPOs; they can assist organizations with varied other tasks,
including lead generation and onboarding sellers/drivers.
KYC Processing: All aggregators, whether cab or restaurant, need to fulfill Know-Your-Customer compliances, which are
very bulky and strenuous in nature. With effective BPOs offering KYC processing services, aggregators can focus on
improving the algorithm and increasing efficiency.
Administration & Finance
Both Administration and Finance are functions that run the show from behind the curtain. Without their effectiveness,
organizations will fail to transport employees from home to the office, and all vendors will also succumb. Admin &
Finance works round the clock to ensure that day-to-day activities in a company are running smoothly.
While processes involved in Admin & Finance must be managed from the head office but some processes do not impact the
output of enterprises much, like:
Bookkeeping & Accounting:
Hiring a team of account graduates to keep books and manage the day-to-day finances will only
add to the company’s cost. Since these processes require monthly updates and have no impact on daily operations, it is
easy to outsource these processes.
Travel and Bookings:
Earlier, organizations used to buy vehicles to transport their employees from home to the
workplace, but the growing regulations have coaxed them into outsourcing these processes. By outsourcing travel and
bookings, admin and finance functions can save time and resources to concentrate on running the office efficiently.
Security:
The security of every employee is the responsibility of the admin function. By outsourcing security to
professionals, the team can offer better protection to employees and the company’s assets.
IT & Data Security
Organizations spend millions to establish a running office they buy hundreds of computers and spend years managing them.
By outsourcing IT services to professional companies, big businesses can save themselves from much hassle.
Administrative Support: Building a team of professionals is not only tough but requires resources and incomparable
dedication. By outsourcing IT administrative support to industry experts, businesses can ensure 24/7 connectivity and
efficiency.
Data collection and management: Running a business requires entrepreneurs to maintain a database of everything that
happens in day-to-day operations. Industry experts have developed paradigms that record, manage, and maintain a backup
of every data created at organizations.
Business Process Outsourcing Examples
BFSI and NBFC: The 3G/4G penetration now covers 95% of regions of countries like India and China. With Internet
penetration increasing, the app-based payment system is gaining momentum. With the increasing use of online payment
systems, the need for effective customer support and affordable onboarding services has grown.
NBFC and BFSI sectors are leveraging varied features of BPOs to the fullest to ensure smoother functioning. By
outsourcing the following functions, they have reduced the burden on the core team and ensured quality in all processes.
- Customer Support
- KYC Processing
- Lead Generation
- Onboarding new Kiosks
E-commerce Marketplaces: Unlike standalone online stores, where everything from designing, cataloging, selling, and
shipping is managed by a company, marketplaces rely relying on BPOs. By leveraging varied types of BPOs, marketplaces
are improving their overall impact.
The top processes outsourced by leading marketplaces are:
- Data Entry
- Logistics
- Catalog Creation
- Seller Onboarding
- Customer Support
Still Thinking about outsourcing?
Final Thoughts on Business Process Outsourcing
Outsourcing is not always about saving money; at times, it is about increasing the efficiency of businesses. When
repetitive processes are outsourced, thought leaders and professional executives are spared enough time to concentrate
on important processes that will take the companies forward.
Technological advancements have made BPOs quite efficient and accountable. An incomparable combination of
state-of-the-art technology and talented professionals is offering businesses the requisite accuracy and efficiency.
