The Massive Growth in Business Process Outsourcing By Hire Dynamics CATEGORY: Blog POSTED: February 3, 2022 Many people think Business Process Outsourcing (BPO) has been around for a long while (the early 1990s) when many companies started outsourcing their call centers to countries like the Philippines and India to reduce labor costs. But BPO truly got its start in the late 1980s, when law firms, microfilming businesses, and other enterprises started outsourcing data entry as a way to – of course! – lower costs. The internet, naturally, changed everything! Now, technology and artificial intelligence have made BPO’s capabilities practically limitless. Companies now can completely outsource: IT services Accounting needs (including even AP processing) Transcription Translation Front-end customer service (via automation) Back-end operations (also via automation) And many other business processes that are critical to a company’s day-to-day operations. BPO’s many benefits Business process outsourcing’s goal is to make running any business of any size easier. BPO also can: Increase quality assurance, Help mitigate risk, Reduce operational costs, Lower storage costs, Streamline compliance efforts, And more. BPO’s future More and more companies will start using business process outsourcing for more business operations as more tasks can become automated, thus making BPO services almost so affordable a company would be foolish not to use them. Banks, digital marketing services, healthcare, and more will embrace it via a subset of BPO: knowledge process outsourcing (KPO) outsources information-relation operations/business activities. Companies will contract work out to those with advanced degrees or skills in highly specialized areas. The types of professionals outsourced in KPO often include: Research and development pros Financial consultants Management consultants Technical analysts Attorneys/paralegals Healthcare pros Data analysts And so on. BPO growth now Most companies use BPO to lower costs: a global outsourcing report from Deloitte in 2020 showed that cost reduction has remained BPO’s main objective. If it’s not, flexibility, speed-to-market, access to tools and business processes a company can’t afford to perform on its own, and agility tend to be next in line. The outsourcing market worldwide in 2019 was $92.5 billion, with the largest share of revenue coming from the U.S. (Europe was second). The Deloitte report predicted an annual growth rate in the BPO sector to be 6.7 percent by 2025. Recruiting as a BPO? …Sort of! Recruiting and staffing businesses traditionally work as partners with the members of a company’s HR department to bring on staff for temporary assignments of varying lengths. Therefore, since many BPO services work to outsource an entire functional area, a staffing company’s services often aren’t considered “truly” BPO. Also, asking staffing companies to find talent in different business sectors could be considered more recruitment process outsourcing (RPO) than true BPO. Benefits of recruitment process outsourcing Cost-effectiveness Streamlining your recruiting process often results in increased cost savings: not only can the hiring timeline become more efficient, but metrics such as cost-per-hire and time-to-hire often decrease. What’s more, a targeted hiring process will generate higher quality talent and lower attrition. High-volume recruiting needs often result in tailored-for-the-specific-business cost-effective rates. Scalability A fast-growing company often needs more team members to meet demand, and a BPO/RPO can help companies meet recruiting and hiring deadlines without sacrificing productivity. In addition, most recruiting efforts such as these often can be pared down or scaled up quickly as needed – such as hiring extra talent during a month’s long growth spurt. Customization What does a business need 300 contact center agents in 30 days? Is its HR team and contact center managers able to handle such a large-scale recruitment effort? More than likely not. Outsourcing the entire recruitment for large hiring initiatives lets a company create a hiring process that aligns with its exact talent needs, timeline, and skillsets. Considerable support for a stretched-thin internal recruitment team. Many people now are resigning from their current positions for what they feel are better opportunities. Couple that with the robust growth occurring in many different sectors – especially contact centers –HR team members and recruiters undoubtedly won’t keep up with demand. From our vantage point, contact center BPO services offerings are EXPLODING. We’ve noticed that many contact/call centers that outsourced their operations overseas still do so. Still, due to changes in their business operations and, of course, tech security, many are moving to U.S. BPO suppliers. This often necessitates paying team members a lot more money – one of our BPO clients recently raised its rate by 37 percent! But the fact that quality contact center personnel are often hard to find, especially when dozens are needed at once, our clients find that engaging the services of a staffing BPO/RPO makes excellent sense. As an example of the demand for contact center BPO services, one of our clients recently asked us to find 300 agents in just 30 days! Most of our contact center BPO services clients need inbound agents more often than outbound agents. In addition, business sectors embracing business process outsourcing with us include telecommunications, healthcare (medical insurance issues, collections, even financial services. Requests from our clients for live chat agents also are growing at a robust pace: we expect live chat to grow and exceed the need for “traditional” contact center agents shortly. No matter the scope of your contact center BPO/RPO needs, Hire Dynamics can meet them. This isn’t a “humblebrag;” this truly is bragging because it’s the truth: Hire Dynamics is an expert in contact center staffing! Learn more about how we can quickly source, recruit, and place talented call center agents for you.
