The value of outsourcing business processes
Business process outsourcing (BPO) industry is often plagued by false assumptions and stereotypes, making it difficult for companies to make an informed decision when considering this type of service. That is why, in this blog post, we decided to bust the myths of hiring a BPO.
According to a study by Maximize Market Research, the BPO market was valued at $169.762 billion in 2021 and total revenue growth is expected at a compound annual growth rate of 7.09% from 2022 to 2029, reaching almost $293.65 billion. Hence the importance of breaking the myths that surround this type of companies and evaluate their benefit for their clients.
Myth 1: BPO is too expensive
There are those who believe that hiring the services of an external company to carry out internal actions necessarily implies a higher cost than if it is done by the organization itself. Actually, the objective is the opposite: it is all about cost savings. In fact, according to the Maximize Market Research study, it is believed that hiring qualified and specialized personnel usually costs companies up to 60%, an expense that is reduced by hiring a BPO company.
BPO providers have access to technologies and resources that may not be available internally and that offer added value, which makes them a great option for companies looking to reduce their expenses without compromising quality; as well as avoiding large initial investments for hiring and infrastructure acquisition.
In addition, these services can often be tailored to the specific needs of the organization, allowing them to get the most for their money. Finally, by outsourcing certain tasks, time can be freed up for staff to focus on more pressing matters, thereby boosting business efficiency.
Myth 2: BPO services are low quality
With lower costs, some people think that business process outsourcing companies consequently offer the same quality level. In reality, it is due to the focus on the activities they perform and the wide range of technologies and advances that BPO providers can now offer world-class solutions that meet international standards.
Comprised of a team of highly skilled professionals in the field in which they specialize, BPO providers are capable of best practices and industry trends, enabling them to create high quality solutions that meet international standards.
Myth 3: They are only for large companies
One of the myths of hiring a BPO is that they are for big business, but in fact they can be a great asset to all size companies. They can provide access to sophisticated technology and experienced personnel, as well as cost-saving solutions that are not available in-house to many companies.
Even for start-up organizations, BPO services can help accelerate growth by allowing them to focus on their core business while leveraging the expertise of an outside provider. Established companies also benefit from outsourced services, as they have access to specialized skills and resources that may not be available in-house.
Size is not the issue, what is essential is to find the right BPO provider that understands the individual needs of the company, offers flexibility to tailor its services to your budget and needs, and offers full transparency throughout the process.
Mexico has approximately 4.7 million employees in BPO business, making it the fourth most profitable country to outsource operations.