Factors you need to Know about Business Process Outsourcing – Dynamics to Shape your Trade

Simply business process outsourcing or BPO is the process of outsourcing key management procedures of your company to a qualified third party. Due to the key role these procedures play in a trade's success many BPO companies in Sri Lanka are well established and recognised. Overall a BPO will perform general tasks such as payroll management, social media marketing, telemarketing, accounting etc. The BPO performs supportive business functions that free up staff to engage in directly productive core business functions within the company.

There are two main styles of business process management; these are back office and front office management. A back office process includes purchasing and billing procedures within the firm while front office services cover the customer's clients by providing tech and marketing support.

The BPO industry is categorised under the following sections; often defined on the location of the BPO. Similar to the global services of H-Connect there are BPO's that offer offshore services to a company's branch located in another country; as an example look at a Sri Lankan company with a branch in Australia. Then there are near shore services which cater to branches of local companies located in an adjoining country; such as a Sri Lankan firm having a branch in neighbouring India. Lastly, there are onshore services provided to companies based within the same country as the BPO provider; this could apply even if the client and BPO are in separate states or provinces.

For starters it decreases overhead costs; in-house, labour is reduced especially for non-profitable services. The company saves costs on additional space to accommodate employees for these processes. Most BPO management systems are streamlined and adopt for example the Lean Six Sigma Methodology which helps eliminate unnecessary waste. Plus these service providers have tried and tested cost models and streamlined process management which adds a professional touch to the companies mundane tasks. This invariably helps achieve better results amongst non-core functions. Also, offshore services mean there is an almost 24hour service in multiple languages ever ready for the customers use. This helps a firm to expand their global presence before setting up the office and finding the right employees.

There are many services a BPO will provide; these include information technology enabled programmes, legal process outsourcing, research process outsourcing, knowledge process outsourcing and customer interactive services such as email management, marketing, customer support services and order processing. There are also back office services of credit, debit and check processions, debt collection, direct and indirect procurement, transportation administration services, logistics and warehouse management services. Invaluable is the knowledge services of internet and web research, data analytics, data accumulation for certain experiments and customer feedback surveys.