2020 saw the biggest rise in the demand for outsourcing and BPO services. Not just because of the shift to a remote work environment but also due to the technological developments which have increased by leaps and bounds. It is easier than ever for companies to outsource their day-to-day operations to a third-party support company in order to focus on their core competencies. In fact, not doing so can risk businesses falling behind those that are actively offloading their operations to a BPO.
In this article, we will discuss why outsourcing has not just risen in the past 2 years, but also why it is here to stay and will only continue to increase in the coming future.
1. Development of Remote Technologies
As the world shifted to a remote work environment during the COVID-19 pandemic, the technology required to make remote work possible adapted astonishingly quickly. Many services such as Zoom, Uberconference and Microsoft Teams rose to the occasion and made it easier than ever to create remote teams that do not require an office space.
One indirect effect this has had is that BPO’s are now more capable than ever to serve as remote teams for companies around the world. Using modern software tools, many companies are able to act as a seamless extension of other businesses. For example, many BPO’s can act as a customer service representative for any given company and represent their brand without having any direct contact with them. This is only possible thanks to the recent technological developments.
2. Cost-Reduction
The global markets have been significantly hit by inflation in recent years. Many companies are looking to cut costs wherever they can. While automation has certainly helped, many branches such as multilingual customer support still require trained individuals. Hiring, training and facilitating staff can be a big financial burden with seemingly no alternative. That is until BPO’s come into the picture.
BPO’s specialize in talent management. That means they already have a professional staff ready to serve at a moment’s notice. Supervising the workers is a team of coaches, managers and HR specialists constantly training them and handling turnover. BPO’s help companies save money by providing this staff whenever they need for whatever project needs to be delivered. The ease of hiring staff through BPO’s at a cost-effective rate has contributed tremendously to the growth of third-party support companies.
3. Downtime Reduction
For many companies, such as online stores, it can be disastrous to go offline for even an hour. With how competitive markets are these days, losing an edge can leave companies with big losses in revenue without even realizing it.
No company, no matter how big or small can remain operational all the time. Even companies such as Facebook have experienced their fair share of service outages. Therefore, BPO’s are needed more than ever to support companies around the world. They help companies fill the gaps by providing their services even during after hours and holidays in order to help companies stay operational through critical hours that yield the most profit. Thanks to disaster recovery tools and cloud storage, BPO’s ensure that no matter what happens services will remain online and even in the worst possible cases, no critical data will be lost.
4. Seasonality
It’s common for most businesses to experience upward and downward trends in sales. This usually happens due to the nature of seasonality. Customers are just not active during some times of the year. Scaling operations constantly can certainly take a toll on a business. They need to be constantly hiring and laying off staff to keep up with seasonal changes. This is where BPO’s have proven to be extremely helpful.
As previously mentioned, the real secret to BPO’s success is how they smoothly manage talent. They are constantly maintaining a healthy amount of manpower to assist any companies that need additional staff. More importantly, BPO’s are extremely scalable and elegantly handle seasonality by assigning staff to different projects in order to maximize their throughput. This has caused BPO’s to be a popular choice among businesses who wish to optimize their performance according to business seasons.
Conclusion:
There are many other reasons why BPO’s are becoming more and more popular among not just SMB’s, but also large enterprises. The ease and convenience of having a third-party company support you every step of the way can be truly game-changing. And thanks to advances in technology, it is becoming easier and cheaper than ever to hire a BPO.
IdeasUnlimited is one such firm that has a proven track record of helping companies dominate their global markets for over 11 years. With a large variety of support services available, IdeasUnlimited is in a prime position to assist any company in need. To get started, be sure to contact IdeasUnlimited today to get a free quote for the support service of your choice.
