Hiring a BPO (Business Process Outsourcing) firm is a huge decision that can often make or break a company in terms of the effectiveness of its workflow and its long-term profitability. Using a BPO firm for programming, web development, software, administrative support, customer service, even sales and marketing can offer a number of benefits that make it a worthwhile risk. Here are 3 great reasons to consider a BPO to outsource work from your company:
#1 Reduce Operating Costs: Yes, this one is the "no-brainer" that leads most managers to investigate outsourcing to begin with. The obvious reason outsourcing reduces costs is because of the lower cost per hour for work that is being done, which is gained either because 1) the BPO firm is overseas and labor costs are lower or 2) the BPO firm is large enough to achieve an economies of scale, that the client does not have, from providing the outsource function across a number of clients.
#2: Free Up Resources: Also can be stated as "pay for what you use", because the principle here is that outsourcing enables a company to specify what services it needs and which it doesn't, and contract for those that it needs. Any company will have a degree of internal resource which is being paid "core resource" dollars but which spends a portion of its time (we're talking about people-time here) on "non-core" functions. This is an inevitable reality in business, but outsourcing to a BPO firm reduces that effect by creating a more "a la carte" system for consuming resource.
#3: Reduce Certain Risks: Not all risks are mitigated with outsourcing, and some can even be exacerbated by the use of a BPO firm that is non-local, or has cultural or language issues that impede the efficiency of the work. However the risk that I refer to is the longer-term risk of what happens when fast marketplace changes or government regulations render certain internal company investments obsolete, less competitive, or simply illegal. Outsourcing to a BPO means also outsourcing this risk, because the BPO firm makes those investments for itself on behalf of many clients, so the risk is spread out across many companies.
Not in the top 3, but important as well, is the idea that hiring a BPO firm for certain functions such as programming, design, accounting, or even virtual assistant work allows you to access the best providers. You don't have the same oversight, but again you have an "a la carte" option which allows you to get closer to what you exactly need and pay for what you use, generally, over the long term.
How to hire a BPO firm: For small or large-scale outsourcing, or even to find individual specialists in a given area, ODesk is a recommended provider who offers resource across dozens of areas. Go to their site here to get a quote and review providers.
Or to read more about BPO firms in general, see this article: Benefits of Outsourcing.