Pros and Cons of Business Process Outsourcing

By KPSG Official Business Process Outsourcing

As the nature of the business climate has become more and more competitive over the past few years, more services are being outsourced on the market today. Why outsource is very popular nowadays? Why the company does not recruit the employees internally? Why a third party holds a crucial part?

In running a company, many things are cleared by the help of third party, like Business Process Outsourcing. What are the common problems a company faced in this past passed market nowadays? Most of the time, an organization cannot handle all aspects of a business process internally. In addition, some processes are temporary and the organization does not intend to hire in house professionals, to perform the tasks. Then, time limitation problem. This might be one of the biggest challenges a company might face. Rushing in finding a person to fit a vacant position is a very common.

Yet, lack of time, out dated recruitment process strategy, etc. could lead a bad result, such as, reduction of the value of the candidates. Sometimes, the qualities of the candidates are in the second list. The first is of course the quantities or the amount of the candidates hired in a very short time. It is definitely is a problem.

Considering those problems as a new market, Business Process Outsourcing (BPO) companies, offer the best solution for a competitive seeker companies. Once the task is outsourced to the service provider, all the responsibility of carry out the task is taken and all the organizations assets are maintained. Some companies may gain better benefits from BPO. But, other companies may be better off handles all procedures in-house.

In consequence, it is very wise, if you first consider the pros and cons of BPO:

The Pros:

1. It is One Stop Solution Service

Once you decide to use the BPO service, BPO will organize end to end recruitment process. From advertising the vacation, conduct interview, screening and selection the proper candidate your company search, and sometime providing some short training needed by the candidates. Usually, BPO employees are usually well trained, productive and experienced. As a result, BPO employees have greater access to professional world.Effectively, the tasks can be completed faster and with better quality input.

2. Reduce Operational and Recruitment Costs

The costs outsourcing are always lower than are you spend money hiring and training staff and handle everything in-house. Imagine how much money you will spend in doing each task. Nevertheless, when you outsource, you know what to expect in terms of cost. The pricing structure will have been agreed up on in advance, allowing your company to predict the expenses of BPO.

3. Allow the Companies to Focus on Internal and Business Activities to Increase the Speed of Productivity of the Company

By using BPO services, your company can excel in other area of the business. Focus on the other internal or in-house matters, while BPO helps you to do the recruitment process for some vacant positions in your company. As the result, the effective collaboration between a company and a business process outsource, might be the best duet to increase the speed of business process. The professional services provided by BPO supplies high quality candidates. And the company plays the role to increase the productivity.

 

The Cons:

1. Risk of Exposing Confidential Data

By involving a third party to your company, always be aware. The chances of exposing the internal data to the third party are always there. Keep all the data safe. Nevertheless, here in KPSG, this problem is solved. Because it is 100% trusted, that KPSG keeps all the client’s data secure. The importance of keeping the client’s data secure is written also in agent’s code of conduct. So the clients are safe from the data theft and can focus on other things.

2. Hidden Costs

Although outsourcing most of the times is cost effective, at sometimes the hidden cost involved in signing a contract can cause a serious threat. Always ask everything clear before signing the contract.

3. Lack of Customer’s Focus

A BPO company may handle the needs of multiple organizations at a time. In such situations vendors may lack complete focus on your organization’s tasks. If you do not get the right BPO vendor, sometimes, the final outcome is not as you expected. Many revisions are needed in the process. A regular report is commonly a bit of difficult to get, due to the hectic times a BPO might have.

 Considering the pros and cons above, it is very important to know the pros and cons of Business Process Outsourcing before entrusting any task to the service provider. Compare in details the various services offered by those outsource companies, before you decide on the best BPO firm that you believe can meet your specific requirements. Remember to find a BPO company with the experiences and expertise necessary to handle your business processes efficiently and effectively for many years to come.

The answer to the client’s doubt in selecting the proper BPO is keeping an eye on KPSG. As well known, KPSG can fulfil all the pros that a BPO has and offers a very good relation to all the clients. You can also validate that KPSG is a company apart from the cons that discussed above.

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Topics: Business Process Outsourcing