We have been battling the Covid 19 pandemic for about two years now, and it has taken a significant toll on economies. Containment regulations have resulted in a drop in demand and in turn, reduced revenue. But as SMEs, we keep forging on, rethinking strategies and revisiting processes. Our hope is that as economies slow down, we can still remain ahead of the pack. This means making changes that push us towards our scalability and profitability goal
Business Process Outsourcing can be a positive investment that allows businesses to gain lost ground by focusing on strategy improvement and growth rather than just process. It creates a balance between continuous improvement and process enhancement, solving a common dilemma for SMEs.
What is BPO?
BPO or Business Process Outsourcing can be defined simply as “the movement of business processes from inside the organization to external service providers”. It can also be described as a shift of work, to the lowest cost or highest quality provider regardless of the physical location. BPO is an outgrowth of BPM (Business Process Management). Its services can be either technical or non-technical. They include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more.
How Can BPO Improve SME Competitiveness?
- BPO allows leadership to focus on key result areas.
Running an SMEs business involves focusing on both the business processes and operations. This divide in attention, coupled with limited resources can result in stifled growth for SMEs. With BPO, you as a business leader, have the opportunity to focus on core functions such as maximizing overall growth through scaling operations, improving business differentiators and customer satisfaction.
- Outsourcing cuts down in-house costs.
BPO is one way to eliminate staffing and training costs. It also reduces rentals that are paid to accommodate employees. With social distancing and working online becoming the new norm, BPO fits perfectly in today’s SME business models. Outsourcing from developing companies has also proved to be inexpensive.
- BPO increases efficiency in secondary function.
By improving consistency and effectiveness of tasks such as telemarketing and social media marketing BPO can increase efficiency in the secondary functions in a business. It can provide specialized customer services, online analytics, data capturing and storage. This translates to improved client response rates, increased company’s visibility and maintaining internal efficacy.
An article on “How South African SMEs can survive and thrive post COVID-19” by Agesan Rajagopaul, Nomfanelo Magwentshu, and Shakeel Kalidas, reveals that BPO enhances performance through workload distribution and provides a smooth transition to remote working. It frees SMEs up to explore new business opportunities and develop sustainability plans.
As economies of the world are contracting and businesses are in survival mode, BPO provides capability building functions that create more “capacity for senior leaders to focus on growth and strategy, to ensure sustainability” rather than just survival.
Ready to improve your process efficiencies? Sign up for our BPO Offering today!