Advantages And Disadvantages Of BPO

 Advantages And Disadvantages Of BPO

BPO or Business Process Outsource is a method of one business company contracting or subcontracting some specialized services from a small BPO company to fulfil these services for them as a third party between them and their customer. While they may seem similar to a call service company, there are BPO companies that provide much more than just call service. Call service is only one of the things a BPO is capable of providing. Some BPOs are capable of providing call services, some technical support, research, content writing, data management and many more. 

Advantages of hiring a BPO company:

While it may be so much cheaper for companies to hire Philippines outsourcing for cheap labour and great services, it may also have disadvantages. So it’s best to know the advantages and disadvantages:

  • More Time For Customers: While most of the non-core staff is outsourced, this leaves the company more time to concentrate on customers. There’s no need to worry about the employment and termination of these staff members. More time and valuable resources can be allocated to customer acquisition and relations, which will allow the business to flourish.
  • Cost Cutting: It can fall much cheaper for companies to hire BPO companies from places with lower wages and lower income taxes. This is a viable way to cut costs in richer countries, allowing the money to be spent on more important things. 
  • More Money For Product Development: The money saved can be used for product research and development for achieving and keeping product leadership. This way, outsourcing can lead up to advantages over competing businesses in the industry.
  • Technological Resources: The outsourcing companies always keep upgrading their processes, their technologies, and practices. They offer business different technologies and processes that they may not have access to. 
  • High Quality Of Work: They strive to constantly improve their abilities and speed to do things well. They keep further increasing the bar for fast and accurate reports and quick resources reassessment. 

Possible disadvantages of hiring a BPO company:

Everything good or bad may have its own advantages and disadvantages. And whenever making a step in business, it’s always better to know both the advantages and disadvantages. 

  • Time Zones: A BPO may have difficulty adjusting to different time zones if they’re used to working in very far away countries with very different time zones. 
  • Possible Delays: Due to there being different time zones, legal problems, and different policies, there can be possible delays. 
  • Communication Problems: There may be difficulty in communication, especially initially to get acquainted and learning to work together. There are also different processes and technologies. But they adapt to it fast.

Misconceptions about BPO businesses:

There is some common Misconception that locals may have about BPOs:

  • They ‘steal’ employment from natives:

It’s the employers who choose to hire offshore BPOs as non-essential staff. This actually means that the locals get a chance to become essential staff with more permanent positions.

  • These BPO employees are poor:

This is not necessarily the case. Employers provide materials and a working environment for them even if they’re overseas. And they earn decently. 

Clare Louise