Business Process Outsourcing (BPO) A Good Option For Business
Working with our client Disys (www.disys.com) in both the USA and Brazil and observing their talented services in the area of Business Process Outsourcing (BPO), has greatly enhanced my understanding of the importance of this service and the benefits that it can provide for many companies, regardless of size.
What is BPO?
In any company, some processes are not part of the main focus of the business, but are essential to the operation of the business. Due to the need for increased productivity, corporations are concerned about maintaining the focus of the company directed on the business of the company. This is not easy when you have a number of bureaucratic secondary processes which are also necessary for the execution of the business. A solution is to outsource these processes. Thus was born the BPO - Business Process Outsourcing .
BPO is the concept of allocating manpower and specialized entities that perform specific tasks within the organization while ensuring quality level of service, increasing productivity of the administrative functions, and reducing costs. Quality BPO is much more than a third party outsourcing of business processes. It is providing tailored solutions and tools developed from a thorough analysis of the company’s business processes. The aim is to increase the productivity of the business without affecting the concentration in the activities of the company. The result is the execution of more simplified and secure processes while making critical information more accessible.
Near Term Forecast
The global BPO market is set to grow 5.1% in 2013, according to recent projections from HfS Research. The Finance and Accounting (F&A), Human Resources (HR), and Customer Relationship Management (CRM) verticals are expected to be three main drivers. The global market size for the BPO industry is expected to reach $304 billion this year, with industry-specific services representing $185 billion of the total. HR BPO will represent another $42 billion, CRM BPO will total $52 billion, and F&A BPO will represent $25 billion. F&A BPO will see 7.8% year-over-year growth, HR BPO is expected to undergo 5.6% year-over-year growth, and industry-specific BPO will probably see 5% year-over-year growth. Regionally, North America and EMEA (Europe, Middle East, and Asia) will continue to account for the vast majority of global BPO contracts, however, Brazil represents a fertile field for business process outsourcing services; its compound annual growth rate is forecast to exceed the worldwide rate. The market outlook is strong for the near term in Brazil based on Gartner research from April of this year.
Some of the Strategic Advantages of Outsourcing Processes of a Business are :
• Increase competitiveness, with business processes that run more efficiently, simply and with greater flexibility.
• More focus on the company's business, leaving secondary processes to the BPO experts.
• Management and operations specialists responsible for executing the secondary processes of the business.
• Optimization of internal labor costs, transforming them into variable costs.
• Growth in the core business structure.
Segments That Have Implemented BPO as a Tool for Growth:
Finance and Accounting
Document scanning and organizing documents.
It is clear to me that companies of all sizes and industries can benefit from the incorporation of BPO and that the future is bright for BPO service providers. Experienced companies like Disys will sit down with company directors and staff to clearly explain the steps and effects of implementation and insure that BPO is right for the firm. While BPO’s may not be a fit for all companies, it can certainly increase business and profits to many.