Today's economy demands changes in the way we do business. The growth in the BPO industry is one sure indication that the economy has indeed transformed our perspective on the way we should do things. Nowadays, companies choose to outsource non-essential parts of their business, preserving their money and making sure that they remain competitive, both in the local and the global market.
Business process outsourcing came about as companies began to realize that they were performing some processes which, while very important and essential, were not really connected with the kind of enterprise that they were running. Money was being spent to train individuals and buy equipment that those individuals used in performing their duties. This was not an ideal situation, and in the 1990s, many organizations simply had to cut costs where they could to survive the harsh business climate. Although a few processes were already outsourced, BPO boomed during this decade and beyond. Today, the industry is estimated to be worth $180 billion.
Outsourcing companies recognized the need for quality office services, and these firms have spurred the growth of the industry. There are a lot of business process outsourcing services to choose from today, and many of them are provided by offshore companies located in countries like India and the Philippines. Customer care services are a huge part of the BPO industry. Instead of speaking to an actual employee of the company, customers with concerns ranging from sales to technical problems speak to a representative of that company. These representatives are employees of outsourcing companies with existing contracts to provide call center services for their clients. They are specifically trained for the account that they handle, ensuring that quality services are maintained.
Financial services and accounting are increasingly becoming part of business process outsourcing. These processes are very important to a business. It covers asset management, financial management, accounting and bookkeeping, and financial analysis. While these processes are central to the financial state of a business, they are not central to a business that deals with, say, manufacturing and production. Instead of hiring accounting professionals and spending on an in-house accounting department, many companies choose to outsource these areas instead.
Outsourcing companies also provide human resource management. HR deals with areas such as recruitment, benefits administration, payroll administration, or training. Big companies have a separate HR department, but smaller companies can't afford the maintenance and equipment that HR needs to operate successfully. BPO companies include this in their services, and many organizations respond positively.
Transcription services are one of the processes that companies choose to outsource. A medical transcription company does medical reports, discharge summaries, and other documents in the medical field. In a similar way, legal transcription companies provide transcribed versions of depositions, legal proceedings, or witness statements. The process is simple: a client sends a sound file (MP3, WAV, or another format) of the document to be transcribed, and the BPO services provider sends the transcription back in a few hours. This provides a great benefit for clients who need the transcription immediately.
Business process outsourcing has a lot of advantages that save money for the client company. The industry offers many services that help a company deal with the central parts of its business. Indeed, a business that employs a third-party company to do some of the non-central work for them gets an easy solution to many issues. All signs point to the possibility that BPO is here to stay.