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December 23, 2021

Many businesses, large and small, outsource some or all of their work to third-party talent to help them progress through the various stages of growth. A good business approach is a good balance of in-house employees and outsourced talent. The main reason for this is that no company, regardless of size, can do everything on its own. In
addition, due to the highly competitive environment, there are a multitude of innovative and readily available services that are reasonably priced.

Google, Apple, and Alibaba, to name a few, are examples of companies that outsource. And, with Covid-19, the demand for outsourcing has only grown.

What Exactly Is Business Process Outsourcing

Outsourcing is the process of contracting business operations to external parties, either domestically or offshore.

In general, businesses use BPO in two areas: back-office and front-office operations.

Back office BPO is when a company outsources its key business support roles such as accounting, IT, human resources, payroll, compliance, and quality assurance to external specialists. In other words, any office solutions that are not customer-facing.

Font office BPO, on the other hand, deal with services that are customer-oriented such as after-sales, marketing, customer support, and so on.

The Different Types of BPO

The BPO industry is divided into three categories based on the vendor’s location:

  • Offshore BPO: The company that provides the services is located in another country.
  • Nearshore BPO: The service provider is in a neighboring country.
  • Onshore BPO: The organization hires the services of a vendor located in the same country.

Benefits of BPO For Your Business

You might be wondering why do companies choose to outsource their operations instead of hiring in-house. The following list will give you a good reason of the advantages and value that Business Process Outsourcing bring:

1- Flexibility

When their usefulness is limited to a specific period, your company may not need to hire full-time employees all year-round. It is because it would put an unnecessary strain on your finances. Outsourcing gives you the flexibility of obtaining the talent you need. Only when you need it.

You can staff up during the busy season of your operations without having to commit to hiring full-time employees. After the busy season is over, you can easily transition back to an entirely in-house team.

An experienced outsourcing agency is the best way for you to always find the right expertise for your needs.

2- Scale Faster

Hiring more employees can help your company grow, but the costs and resources required to hire and support them can outweigh the benefits. It can severely limit your growth potential and slow any momentum you built up to that point. You might even reverse your growth.

Outsourcing some tasks is a more practical solution than forming an in-house team. It is because outsourcing is less expensive and does not put as much strain on your finances.

With outsourcing, you can have an internal team focus on the core aspects of your business while outsourcing the rest for more consistent, long-term growth.

3- Easily Find Top Talent

In general, top talent gravitates toward large corporations because they pay extra and provide more benefits, both of which you’d struggle to provide while your business is still growing.

In general, top talent gravitates toward large corporations because they pay extra and provide more benefits, both of which you’d struggle to provide while your business is still growing.

It is especially true when you work with an outsourcing agency. They are usually capable of providing the best talent to ensure they stay competitive.

4- Stay Compliant

With so many privacy, security, and quality regulations in place across many industries, it can be difficult to keep track of everything. It is especially true if your staff is poorly trained and does not follow regulations.

Small and medium-sized businesses may also find it difficult to find and retain experienced staff to ensure compliance and avoid potential lawsuits.

Outsourcing some of the more sensitive operations to a third party with dependable talent is the best option. And, as previously stated, outsourcing agencies are the go-to solution for locating such expertise.

5- Maintain Focus

Another advantage of outsourcing is the ability to focus on critical internal company tasks such as sales.

Your productivity will suffer if you rely solely on key members of your in-house team to perform all the time-consuming and distracting menial tasks.

Outsourcing allows your internal team members to focus on the core operations, allowing your company to run more efficiently and, as a result, increase your ROI.

Outsourcing BPO in New Zealand

Look no further than Smart Staff if you’re looking for business process outsourcing companies in New Zealand. Run by Kiwis for Kiwis, Smart Staff is a leading New Zealand outsourcing specialist focused on helping businesses to achieve sustainable growth by outsourcing the right business processes to the right people.

We offer a wide range of premium workforce support services across a wide range of industries. We handle your non-core business processes, so you can focus your team on the key aspects while lowering costs and increasing your growth potential.