BPO Then and Now – History and Growth

BPO Then and Now: A Look at its History and Growth

Can you imagine the BPO industry without computers and the Internet? It’s a silly thought, right? Where would BPO be without the interconnected networks that span across two or more countries? Outsourcing is about people and businesses that are geographically apart but are brought together by a powerful technology that makes human and data communication possible in real time.

But, would you believe that BPO used to work sans the technology we know today? YES! Before the Internet became a “thing”, sourcing out operations already existed but it in a very different way.

The Old BPO

Business Process Outsourcing (BPO) then was largely associated with the manufacturing industry. The “BP” or business process that was “outsourced” are huge segments of a company’s supply chain, often involving raw materials, production, and distribution of goods and services.

A great example of how BPO worked before is Coca-Cola.

Before Coca-Cola or “Coke” became a global brand, it was ours first. Starting in the late 1880s, Coke made its way into the American market, rising to popularity over time. After roughly three decades, Coke decided to “outsource”. In 1921, Coke teamed up with a local corporation in the Philippines, establishing their first international bottler in the process.

By “outsourcing” their manufacturing operations in the Philippines, Coke did not only save costs but it has also secured a strong presence in the Asia Pacific region.

Early Stages

Now, fast forward to the late 1990s upto the early 2000s. The Internet may not be as good as it is today, but it has allowed the BPO we know to take shape and form. Still centered around cost effectiveness, more and more companies are entrusting their non-core business functions to outsourcing partners in countries like India, China and the Philippines. The number of call centers and back office support companies grew. As a result, businesses gained flexibility, allowing their main office staff to focus on vital core processes.

Business Process Outsourcing in the Present

Today, the BPO industry has definitely gained solid traction. Some even go as far as saying it has undergone a revolution.  Over the years, the BPO industry has proven it has more to offer than being just an economic strategy.

For instance, outsourcing is no longer limited to back office and support jobs such as contact centers. With the right systems and the right people, having offshore teams with high level of expertise and specialization is possible. Therefore, companies can outsource even their core business functions.

And it’s already happening now.

KPO, which stands for Knowledge Process Outsourcing, is a subset of BPO that refers to outsourcing integral business functions and working with offshore teams that have an advanced degree of analytical and technical skills.

The industry has grown exponentially since the 1990s. It has opened doors all over the world, benefiting not only the companies that outsource but also the people who openly embraced the opportunity to work with foreign businesses right in their homeland. For both parties, the advantages are undeniable. BPO has gained global acceptance, and without a doubt, it is here to stay.

So, if you haven’t tapped into outsourcing’s potential yet, don’t get left behind. Work with Straightsource and give your business the flexibility it needs. We offer over 44 business services to help you maximize your budget, headcount and resources.

Outsource Mortgage Services to Free Up More Resources Within Your Business

Real estate is often described as a roller coaster and, consequently, the mortgage industry is along for the ride. But despite its ups and downs, this industry is here to stay.

However, just like real estate brokers who have to cope with the ever-changing market trends, mortgage companies have to adapt as well. They have their own set of challenges to face and their own roller coaster ride to survive. It’s not always easy to keep up, and stay compliant.

Outsourcing mortgage processes can help tremendously. Besides saving you from the humdrum and detail-oriented aspect of mortgage processing, it can give you the following advantages:

Higher Accuracy, Better Efficiency

Streamlining processes and having a uniform approach towards mortgage-related scenarios are possible when you have a dedicated team. Your outsourced staff  is focused on nothing but your mortgage processes and as a result, they become experts. Although the goal is not to have a set-and-forget team, they can function independently for the most part.

Systematic Monitoring and Follow Up

Collecting payments is often a tricky process. Think about the countless notifications and reminders you’d have to send out. Having a focused team can ensure that payments are monitored and documented accurately. In case of delinquency, protocols will be set in motion and you will be notified without delay.

Reduced Cost

When you outsource, you’ll get the same quality of work at a lesser price. Your outsourced team will be trained based on your mortgage processes. They’ll carry out your systems the way you want them to. In addition, there’s no need to worry about staffing and performance control. Your outsourcing partner will take care of it for you.

Increased Customer Satisfaction

Meeting customers’ expectations is good but exceeding them is the goal. With an outsourced team, you can expect faster turnaround rates, quicker resolutions, and better interaction. Because your team’s sole focus is working with your borrowers and their mortgage, they can take a more proactive approach with customers.

Use of Up-to-Date Tools and Infrastructure

Aside from having experienced and trained people, you get access to up-to-date and well-maintained infrastructure and tools, a technological advantage already integrated into the outsourcing service you pay for.

Internal Process Realignment

Mortgage processes, although crucial, are downright painstaking. But once you outsource it, you gain back resources within your internal team. You can reallocate these resources  — time, funds, and workforce — to other areas such as research, marketing, and administration. In return, you strengthen the core of your business, becoming more efficient in the process.

Mortgage operations are tedious by nature and accuracy is absolutely critical. From approval to redemption, there are numerous big and small steps in between. Going through them requires effort, money, and most importantly huge amounts of time that could be directed towards attracting more clients and strategizing on how to work with the current state of the market. You need a reliable partner to do the heavy lifting.

Call Center Outsourcing

A Cost-Effective Solution without Sacrificing Customer Service Quality

Business thrives because of customers. They serve as the lifeblood that drives business towards stability, progress, and profit. In other words, success. Taking care of them should be a top priority, and having a call center is an excellent way to keep them happy and satisfied. However, cost is a huge consideration when setting up a call center. On one hand, you want to deliver effective customer support but on the other, you want to keep expenditures low. Fortunately, there’s an answer to it: Call Center Outsourcing.

Moving your call center to a country where your dollar can return more value is the most practical solution. Aside from allowing you to save money on call center operations, quality isn’t sacrificed. In addition, it delivers other benefits your business can capitalize on:

Below are the biggest benefits of call center outsourcing:

Specialized Team

When you outsource, you get a team of trained individuals who are not only knowledgeable about your company’s product and services, but are skilled in handling different types of customers. In reality  customers often call to complain or raise an issue. For this reason, soft-skills are necessary. You need people adept in handling possibly irate customers while providing solutions at the same time.

Management Support

Imagine having your call center in-house. Staffing, training, and people management becomes your responsibility. But when you outsource, these will be taken out of your hands. If something goes awry, you have people to fix the problem for you. As a result, you can keep your focus on the most important thing which is running your business.

Call Center OutsourcingAccess to Infrastructure and Technology

Reputable call center companies come with high-grade Internet, up-to-date software, and top-of-the-line communication hardware, tools that will cost you an arm and leg if you choose to purchase yourself. When you team up with one, these tools are at your disposal and you’re paying only a fraction of the cost.

Room for Growth and Flexibility

Let’s say you want to start small. A team of 10 perhaps. But later on, your needs will change. As your business grows, your need for customer support will grow too. A call center company has the flexibility, as well as the capacity, to accommodate your needs.

Data Gathering, Management, and Analysis

Knowledge is power. Who can give it to you better than your customers themselves? All calls and customer feedback are transformed into quantifiable and qualifiable data. Through analysis, you’ll be able to point out which areas are doing well and which ones you should take action on. This allows you to keep your finger on the pulse of your business. You’ll be able to improve, tie loose ends, and boost customer satisfaction.

American business author Michael LeBoeuf once said, “A satisfied customer is the best business strategy of all.” It sounds simple, but the road to achieving 100% customer satisfaction is paved with smart choices. If you’re thinking of having a call center – outsource. You’ll get all the benefits of an in-house call-center at a lower cost.

At StraightSource, we help you find the right solutions to fit your business and your budget.

What is BPO (Business Process Outsourcing)?

What is BPO?

BPO or Business Process Outsourcing is when a company hires a third party company to perform functional business processes. In most cases, a BPO company is specialized in one or more functions, such as accounting, call center management, recruitment, human resources and more. Some are even more specialized towards a particular industry, such as mortgage process outsourcing, medical coding or medical recruitment.

When a company hires a resource outside of their country, it is called offshore outsourcing, while if it’s a neighboring country, it is nearshore outsourcing.

Business Process Outsourcing first became known as a manufacturing solution, whereby companies would hire factories to perform manufacturing services in a variety of industries, from automotive, to clothing, to electronics and more. In recent years, those solutions have expanded to solve many different business functions in many industries. Additionally, information technology outsourcing (ITO) has grown, especially in India.

With the advancement in technology, the world has truly become a global economy. The countries which are the biggest players in BPO include India, the Philippines and China. There has also been growth in Eastern Europe and Africa in recent years.

In 2017, the outsourcing industry equaled approximately US$88.9 billion, with ITO earning the majority at US$64.3 billion.

There are many reasons why companies decide to go the BPO route. Some of the reasons include:

  1. Streamline repetitive and low skill processes to save money that can be spent on higher level initiatives and talent.
  2. Quickly fill a gap where there is a lack of talent, equipment or technology to perform current functions or fulfill new industry requirements.
  3. Manage headcount for better financial reporting.
  4. Manage budget and overhead during high growth or business lows.

In certain regions, such as Silicon Valley in California, finding technology talent is a constant struggle. While much of the international technological education takes place in top universities in the U.S., many graduates take their education back to their home countries where they hope to improve the lives of their families. Getting work visas in the U.S. has been a continuous struggle for many top graduates and those hoping to immigrate to the U.S. It is also a long, expensive ordeal, and can usually only be done by a sponsoring company willing to foot the legal expenses.

With the talent returning to their countries of origin, the talent gets spread across the globe. A smart BPO company will hire this talent in teams in their countries, and provide these services to U.S. companies.

But it’s not just large corporations which utilize Business Process Outsourcing. Small businesses and start-ups also enjoy the affordability of outsourcing, as well as the flexibility it offers.  Consider a small mortgage operation who requires back office support and mortgage processing. Their loan officers can focus on the customer while the mortgage process outsourcing company focuses on the transaction.

If your company is considering BPO for one or many functions, carefully consider the organization before you sign any contracts. Not every BPO is the same, and not all of them will make the ideal partner for you. No savings in the world can make up for a company that fails you or your customers or eats up a lot of your time to manage them.

At StraightSource, we provide you with top quality service for over 45 different business functions. We work with YOU to determine what you need and what solutions will benefit you the most for the best price.

Sources

https://www.statista.com/statistics/189800/global-outsourcing-industry-revenue-by-service-type/

https://en.wikipedia.org/wiki/Business_process_outsourcing#cite_note-almanac-27