Business process outsourcing (also known as BPO) management is crucial to the development of a business if done right. We are basically talking about a special type of outsourcing that will contract just a part of the business functions or responsibilities of a company. For instance, a business process outsourcing company might be responsible for the management of articles in a content writing business. Although BPO can relate to a number of things, nowadays we usually use it to describe service outsourcing.
When talking about business process outsourcing management we are referring to the management of BPO in any company. Business process outsourcing can be divided in 2 main categories:
- Back office BPO - linked with different possible internal functions of a business like finance, accounting, human resources and so on - Front office BPO - linked with services connected with customers
When people talk about business process outsourcing management that is done through the services of a company that is based in another country we must use the term "offshore outsourcing". It is very common to mistake regular BPO with offshore BPO due to the use of outsourcing.
We need to understand that BPO management is really a big field of activity. For instance, in India alone we are talking about over 11 billion US dollars in revenues generated by offshore activities done for other countries. Very big profits have also been recorded in South Africa, Egypt, Philippines, Morocco and Eastern Europe. As a total figure we can say that the entire BPO market is currently worth over $150 billion.
Why Business Process Outsourcing Management?
The biggest advantage that comes from BPO stands in flexibility. By outsourcing we are faced with a more flexible working environment that eventually builds up more time and bigger profits. It is quite easy to find an outsourcing company that will work cheaper than the local market, all at the same quality level. Also, if we take away some business functions from a company we are faced with a better work flow and a better focus on the internal activities. This basically translates in an increase competency of the core of the company.
The bottom line is that business process outsourcing management can easily increase the growth of a small business and even a bigger business. At the end of the day it is important to understand this and even try to incorporate it in your own business. It is basically impossible not to find the right BPO Company to handle your outsourced needs. All that you need is a good outsourcing strategy and profits can constantly rise.