Deciding Factors to Join BPO

Outsourcing your business to third party brings huge risks with it. On one hand business process outsourcing brings tremendous growth to your business in terms of increased productivity and reduces cost. While on the other hand you face sever risks in terms of reliability and promised target fulfillment by BPO Company. So before handing over your business activities to a third party you need to take some precautionary measures in order to avoid any problem afterwards.

Here are some times which help you to decide what, when and how you have to outsource your business processes.

•   Selection of Right Business Activities for Outsourcing

Selecting which activities need to be outsourced is one of the most important steps.  You must retain control over activities and aspects which make you unique or define your brand. Don’t outsource those activities which directly impact your customers directly. Mostly companies outsource their noncore activities so that they can actively focus on the major business operations.  As selection of business activities is the major step which is going to define future success of your business, therefore you need to be very careful.

• Finding the Right BPO Company

Once the selection of activities to be outsourced is done, the next important step is to select a reliable BPO Company. BPO firm unable to manage your business functions can ruin your whole business.  Take your time, compare and contrast offers from various companies. After a proper analysis of shortlisted BPO companies, go for the one which suits you best.

• Consider All Outsourcing Costs

Companies outsource to reduce their cost, however most of times projected cost does not match with actual cost. While choosing the BPO company fees charges from networking sites or any other legal charges while drawing up the contract may add up in your predefined cost plan. Therefore it is important to note down all extra charges that might occur, in order to avoid financial problems afterwards.

No doubt following above mentioned steps might help a lot to find ways to work more effectively and efficiently.   

BPO Concept becoming Popular in Insurance Industry

Business Process Outsourcing is developing its roots in insurance industry. It is expected that in 2015 the global insurance sector is going to spend about $3.5bn in outsourcing insurance operations. The reason behind this transition is the need of better skill set, technology and customer care. 

The latest research conducted by Everest Group shows that the amount of $2bn spent in 2011 will increase up to $3.5 to $3.6 in 2015. Furthermore Life and Insurance segment is going to spend about 60% of their total expenditure on business process outsourcing. Everest Group mentioned:

“Insurers need help to understand the requirements and priorities of digital consumers and are looking to BPO service providers to help them navigate through this channel”

How Outsourcing is Beneficial for Insurance industry

The challenging business climate has compelled insurance industry to adopt new means of doing business. Some major benefits include:

• Outsourcing helps insurance companies to focus on core activities that can increase their revenue. By outsourcing noncore activities insurance companies can focus on new projects and new insurance packages to clients.
• Hiring outsourced team of experts helps insurance companies better manage claims, frauds and other functions.
• Customer services become more efficient and effective by hiring services of professional BPO Company. Companies can add more customer care professionals for the same cost, improving the ration of customer care agents to customers. Good customer care will naturally build up customer’s trust eventually improve the brand and getting a larger share of the customer’s business.
• The overall capex for implementing latest technology and integrated system decreases as the outsourcing companies systems are used to achieve business results. Moreover companies have to pay less for expert staff as compared to hiring them in-house.

In summary then, outsourcing insurance services is a proven and reliable strategy for enhancing business revenue and developing an excellent customer experience. 

Why Logistic Companies should outsource their Back office Functions

Business process outsourcing with its remarkable benefits in terms of increased productivity and reduced cost is now becoming an important part of almost every industry. Like others logistics industry is also embracing BPO concept in order to enhance and secure their business.  

The safety regulations in logistics market are making it difficult for companies to manage cost and maintain their market position.  According to latest research conducted by Avondale Partner analyst firm, in first quarter of 2014, 390 motor companies were bankrupts. The present stats depict that latest business ideas and technology should be utilized in order to stand in today’s challenging market.

Top trucking and transportation companies are now outsourcing  back office functions.  Back office outsourcing enables these companies meet their deadlines for delivering freight. Here are some main reasons which explain the importance of outsourcing in logistics industry:

•  Work force Cost Reduction

Trucking companies mostly have high demand for hiring workforce in order to make their process efficient. However despite of increasing the staff there is needs to think smart. Think of improved means of doing business which can reduce your workforce cost while increasing business productivity.  Back office outsourcing is one of the best ways to reduce workforce required to maintain back office data and documents processing. Moreover 24 hours services of a BPO company will help you in fast processing of payments, bills and salaries. In short you can manage variety of back office functions by hiring one BPO firm rather than inducing separate person for each function. No doubt back office processing is best way to reduce cost and increase production.

• Good Customer Service

Outsourcing customer support to a well experienced logistic document processing firm can make your business customer support efficient and effective.  Mostly BPO companies have trained error correction and quality assurance staff which ensures that every customer problem is solved quickly. Improved customer service naturally reduces pressure for the delivery team.

• Better Load Planning

Immediate processing of documents and critical information allows management to do better load planning. Outsourcing enables logistic companies to focus more on planning of their core activities.  A properly engineered plan reduces delays in shipments, allows proper utilization of trucks and decreases overall cost.

No doubt business process outsourcing is the major contributor in success graph of logistic companies.