Business Process Outsourcing – BPO Projects are the subcontracting of business process functions to service providers, whether internal or external to the company, usually in places with lower costs.
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Today many of the common functions of companies are outsourced so that it can concentrate on your business and strategy. For example:
– Customer service is contracted to a company specialized in receiving and making telephone calls (contact or call center).
– The administration of human resources (payment of salaries, hiring, and selection, among other activities).
– Accounting and finance.
– The administration of technology.
Main areas under Business Process Outsourcing:
Some large consultants offer various Call Center Projects services to large companies. The BPO areas that have traditionally obtained greater demand and development are:
Administration and Finance BPO:
It includes financial analysis, financial reporting, and planning, management accounting, cash and cash management, payment and receipt of accounts, risk management and taxes.
Human Resources BPO:
It is especially focused on the candidate recruitment service, known as recruitment.
Customer Contact Services BPO:
Call centers, customer service, claims, etc.
BPO Information Management Services:
Control of the flow of information, support media (hardware, software), as well as everything related to information and communication technologies.
Description of Business Process Outsourcing:
The outsourcing of a business process consists of outsourcing the management of some area or activity of an organization to a specialized provider, based on a multi-year contract. This agreement guarantees the quality of service through service indicators.
This implies a paradigm shift in customers: delegate media management for the benefit of service level management
The evolution of Call Center Franchise business practice has clearly been growing over the last few years, mainly in the field of information systems. However, a new phenomenon emerges in the strategic actions of organizations: the outsourcing of a business process, in which Information Systems are one of the supports, one of the dimensions of the business.
To the traditional reasons that have enhanced outsourcing such as concentrating on the main activities of the business, reducing costs and converting fixed ones into variables, others have been added that configure a new scenario of relationship with suppliers. A scenario with greater commitment and creativity:
– The need to create very dynamic service structures and adaptable to changing environments in the ways of doing business and providing services.
– The guarantee of the availability of resources and specialized technology at predictable costs.
– The improvement of the overall efficiency and not only of certain tasks.
Conditional factors for Business Process Outsourcing:
We can consider, in a broad and general way, a series of factors that condition the implementation of BPO Franchise in companies.
Strategic environment:
The natural need for broad knowledge by officials about the new management system implies the dissemination throughout the organization of the company’s strategy, vision, mission, objectives, and goals for the correct application of the outsourcing process.
Likewise, the objectives, policies, and guidelines should be reviewed so that the company, in case of conflict, is able to establish a relationship of trust between all hierarchical levels and jobs.
Organizational environment:
Due to the changes in the functional structure, there are significant alterations of the physical space occupied by the organization, variations in the functional activity and in the delegation of authority and changes in the departmental organizational charts and in the general.
Therefore, there are also alterations in the rules, systems and operational methods, which should be reviewed frequently to support the changes produced by outsourcing.
Consequently, the organization will be immersed in a process of adaptation to the new internal control of management information systems, through greater support and qualification of data for decision making.
Economic environment:
Under this perspective, outsourcing requires an adaptation of the internal cost structure to this new system defining its situations at an accounting and operational level. Thus, the data obtained through the cost system of outsourced activities in relation to the costs of internal activities.
From the implementation of Inbound BPO projects, a continuous review of the costs of production processes, distribution, marketing and, in general, the costs of many internal administrative activities is necessary, as they directly affect the operational administrative structure of the company.
Likewise, there must be an environment aimed at reviewing the prices and rates of the organization’s products or services, considering the participation and influence, directly or indirectly, of the outsourced activities for their final determination.
Business Process Outsourcing:
In many cases, depending on the outsourced areas and depending on the flexibility of management implemented in them, there may be significant variations in the planning of the level of investments in assets by the company or in the planning of the performance of existing assets.
Social environment:
The special circumstances of the political and social moment lead us to talk about employment. This topic should be analyzed taking into account two aspects:
Opening of new businesses:
In this sense, international examples of outsourcing, some of which will be discussed below, lead us to think about the rapid formation of new companies in various market segments in the services sector.
Function Review:
With the implementation of outsourcing, the transformation of functional structures is inevitable in companies. It is up to senior management, based on the strategic vision, to define the internal consequences of such a process.
The social aspect of the dismissals when they occur, trying to facilitate the process together with the officials, and trying always and to the extent possible, through negotiations with the provider of the services that will be hired, the foster care, in a partial way or total, of these officials who will become collaborators of the new company.
The functional internal movement will teach the administrator the possibility of taking advantage of the workforce available in outsourced areas. This situation is facilitated since former employees know the company, its culture, and philosophy.
This approach is extremely important because, with the implementation of outsourcing, the business trend is to lay off employees.
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