Business Process Outsourcing companies (BPOs) generally operate from within developing economies. This provides a number of benefits to businesses looking to outsource their non-core, transactional business processes. In Beepo’s eyes the top 10 benefits of business process outsourcing are:
- Cost Savings
- Grow your business
- Increased job satisfaction
- Leverage your employee’s strengths
- Increased hours of operation
- Become a Global Corporate Citizen
- Renew your focus on business strategy
- Work in a less regulated Industrial Relations environment
- Leverage the value of the Aussie Dollar
- Everyone else is doing it
1. Cost SavingsIt is cheap to employ staff in developing economies. Beepo operates in The Philippines where the cost of living is lower than western economies. Therefore you can work with outsourced staff in The Philippines for a fraction of the cost of outsourcing locally having your own in-house staff complete the processes.
2. Grow your businessThe first thought that pops into most business owner’s minds when they think about BPO opportunities is the possible cost savings. However, it is important to understand that most businesses struggle to grow because they don’t have the funds to hire the required staff. By outsourcing non-core, back office, transactional business processes overseas businesses can free up their employees’ time to focus less on the ‘admin stuff’ and more on growing the business.
3. Increased job satisfactionWhen I was studying my MBA, I was surprised at the relationship (or lack of) between job satisfaction, employee retention and remuneration. The research basically states the link between job satisfaction and remuneration is pretty tenuous; however, the link between employee retention and job satisfaction is a big one. One of the things that turns people off their jobs is doing things they do not enjoy doing; like the mundane, administrative, transactional, back officetasks that prevent them from doing the things that they enjoy about their role.
4. Leverage your employee’s strengthsAlong the lines of point 3, by outsourcing non-core, transactional business processes you allow your employee’s to focus on doing what they do best. For example, you didn’t hire your sales team to fill out paperwork every time they made a sale, right? You hired them to sell! And I bet they are constantly whining about the administrative load they carry with them everywhere, right? But, think about what might happen if you outsourced some of the non-core, transactional stuff that they do? They would be happier, but they would also be able to focus their time on selling more; which, therefore helps grow your business.
5. Increased hours of operationBy outsourcing processes overseas you can also leverage the working conditions and the time differences to work for your business. Generally, overseas workers are happy to work whatever standard hours suits the client. So if you need processing work done at night while you’re business is closed then this could happen through outsourcing. On the other hand, if you need your outsourced team to work the same hours as you do then they can do that as well. At the end of the day the flexibility of operating hours is there to suit you.
6. Become a Global Corporate CitizenBy working with our overseas team, not only are you creating opportunities for your own business to grow, but you are also helping to improve the living conditions in less fortunate countries. The BPO sector’s contribution to The Philippine economy cannot be compromised.This is evidenced in the figures below:
- Php 232.7 billion in VAT (Value Added Tax – similar to GST) contribution for food purchases
- Php 73.7 billion in housing rental
- Php 45.4 billion in public transportation and mobile communications costs
- Php 22.5 billion in clothing costs
- Php 80 billion in savings/investments
- Php110 billion in taxes that could go to cover public services equivalent to 300,000 classrooms and 3.2 million families receiving maximum Conditional Cash Transfer (CCT) for a year.
So by engaging in the BPO sector you are helping improve living standards for people less fortunate.
7. Renew your focus on business strategyOutsourcing non-core, transactional processes will ultimately result in time saving for you. Especially, when you outsource with Beepo. We will look after documenting your processes in a way that makes sense to our offshore team and will also train our team to look after your needs. Imagine what you could do with the time saving you will realise when you hand the staff onboarding process over to us? You could use that time to focus on your business strategy and grow your business or…. You could be sipping Pina colada’s on the beach. Either way you’re not worse off!
8. Work in a less regulated Industrial Relations environmentBy working with Beepo in the Philippines you won’t have to worry about performance management problems within your business. We employ the team in The Philippines, so you only need to tell our consultants that you are having a problem and Beepo will manage the issues from there. You also don’t have to worry about doing that Masters in Industrial Relations just so you can understand Australian employment legislation!
9. Leverage the value of the Aussie DollarThe high value of the Aussie dollar has posed problems in recent economic times for our exporters. But if you want to import services from overseas i.e. outsource processes to an overseas based BPO, then you will reap the benefits of a strong dollar. Towards the end of 2013, the RBA stated that their strategy is to reduce the value of the Aussie dollar to 0.85 US Dollars. When you consider that in Jan 2014 the Aussie dollar was worth 0.89 US Dollars and bought around 40 Philippine Pesos then that 4 cents difference is not going to affect the outsourcing value you get for your buck.
10. Everyone else is doing itA quick internet search will make you realise that the Australian government is not doing too much in terms of trying to understand how many Australian companies are utilising BPOs. However, when you consider the following points it is obvious the BPO sector is huge and growing – It is growing because businesses of all shapes and sizes are jumping on board:
- Since 2001, the Philippine BPO sector has grown to employ 770 000 people
- In 2012, the sector grew 20 percent and generated $6bn USD for the economy
- By 2016, the BPO sector is estimated to hit revenues of up to $25 billion, will account for approximately 10 percent of The Philippine’s GDP and will directly employ 1.3million Filipinos and 3.2 million more in indirect employment.
Businesses are outsourcing their non-core, transactional processes to Beepo because it makes good business sense for them to do so. Outsourcing provides businesses with the opportunity for growth and to maintain or increase their margins in a domestic business environment that is continually becoming more regulated and, increasingly complex and expensive.