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BPO Providers: Is Outsourcing Necessary?
What is BPO?
BPO is an acronym which stands for business process outsourcing. It is simply the process of acquiring service help, manpower in particular, from outside sources instead of getting labor services from their own company. In general, white collared office workers are those involved in carrying out this kind of work.
Through the process of labor delegation with the assistance of BPO providers, a company will be able to maximize its full potential as their standards of service are being enhanced.
The typical kinds of work being outsourced through BPO providers are: human resources, accounting, call center and customer care, manufacturing services, medical transcription, IT, software development and engineering as well. Nowadays, BPO providers have also explored other services such as: freelance writing, advertising, sales etc.
What are the Responsibilities of a BPO Provider?
A BPO provider is responsible for imparting business services to industries and companies who are in need. BPO providers are expected to transfer all the necessary workload assignments allocated to their customers. It is also expected that both parties are aimed to uplift the image of the company with an outstanding quality of service.
BPO providers were known to have their main office located inside established and developed countries like the US. Some would also be found in parts of Europe. They are recognized to get assistance from developing countries like India, China and the Philippines.
In the process, a BPO provider maintains a dynamic rapport between the vendor and the consumer is established. The vendor would be the BPO provider, whereas the consumer or the buyer is the company or the person who demands for labor.
Buyers are entrusted to have full control, assembly and administration of resources detailed to them by their BPO provider. Thus, they are expected to act as an independent entity. This gives them the opportunity to hire another set of laborers for better workforce.
However, this does not detach them from being linked with the first company. The established partnership is still there, since the buyer earns its funds from the mother company.
Why is there a Need for Outsourcing?
Evidently, there are an increasing number of organizations in the global market these days, who go for sourcing outside labor. Why is this?
In general, the reason why BPO providers allocate labor force from outside sources is that they want to cut their costs. This is so, such that the work load is redirected to low-cost service workers. This indicates an efficient utilization of international workers, resources, investments and expertise.
Developed countries like the US have an obviously very powerful currency worldwide. Allocating their money to the third world countries, or the developing ones, is a good resort. In this way, they will increase their productivity as resources are maximized without putting their investments in jeopardy.
Here’s an example --- Because US is considered powerful, there is a large gap between their money compared to those in the Philippines. They can buy more pesos, whereas the Filipinos would need larger funds just to buy a dollar.
Nevertheless, they still exploit this opportunity due to the fact that foreigners need to earn for a living. Yet, it is also considered that these people are the ones who are responsible for elevating their company to the next level.
They prefer this option of outsourcing since their citizens usually demand for higher salaries. They can’t afford to hire their own due to the aforementioned costcutting effort.
Is there really a Need to Outsource?
Detractors have laid their criticisms regarding BPO trade. It has become a worldwide issue if it is equitable or not. The most common questions asked are --- would there be an excellent service output when you support the work of others? Can this help uplift the economy?
Viewing this perspective, how would you judge? BPO providers are helpful, it’s true. However, for cultural activists, can you defend this? Obviously, they will patronize their own.
In spite of this, it not restricted that you close your doors to outsourcing. There have been many proven facts by which outsourced businesses have established a greater and larger venture. Since some people believe that by far, economy is determined by their profits. As a consequence, if you earn more through BPO, you will also help promote your own economy as well.
In terms of service quality, the company has the right to either push the business to outside sources or pull it back to their own country. They only have to consider all points. There’s nothing wrong in trying. If it doesn’t work, or if the service acquired is not of good quality, then better turn your head back to where you first came from.
