BPO, or Business Process Outsourcing, is the outsourcing of business processes. When a company cannot perform certain tasks internally, it uses a supplier to do them for it. Find out everything you need to know about it.
In order to carry out certain highly qualified missions, a company must sometimes compensate for its lack of in-house skills by enlisting the help of a third party. This is called Business Process Outsourcing, or externalisation of business processes in French.
BPO or Business Process Outsourcing: what is it?
The outsourcing service also known as BPOis a business practice that consists of delegating to a service provider a task or the entirety of a profession. The company outsources the mission that it cannot carry out by itself.
Originally, outsourcing and offshoring were practices used in the manufacturing industry. However, over time, a large number of industries and all kinds of service sector companies have adopted it.
In the field of IT, companies generally outsource highly qualified missions. For example, software programming or network administration are tasks that can be subject to BPO. Companies can also relocate their entire IT department.
BPO: What are the benefits?
The advantages of Business Process Outsourcing are numerous. First of all, this practice often saves money. For example, an external supplier from a foreign country can perform a task at a lower cost. Similarly, in some situations, it is possible to pay less tax by outsourcing a task. BPO contracts also make it possible to gain flexibilityand to react more quickly to changes in the market.
In addition, by outsourcing missions that are not at the core of their business, companies can focus on operations that set them apart in their market. It can therefore be a competitive edge.
BPO vendors, on the other hand, are generally specialized in the task for which they are employed. In general, they are therefore able to to carry out these missions more quickly and in a more efficient way.
BPO: What are the risks?
However, the BPO does not only have advantages. Companies that adopt this practice also expose themselves to risks. First of all, it can be a security risk. For good reason, companies that outsource missions are obliged to create technological connections with their supplier.
These connections can be exploited by cybercriminals to attack the company’s computer system. In addition, organizations are often forced to share sensitive data with their suppliers. Again, this increases the risk that the data will be stolen by a malicious third party, or even exploited by a dishonest provider.
The BPO may also result in unforeseen costs. Companies may sometimes underestimate the amount of work required by the supplier to complete the assignment, or simply neglect to calculate costs. As a result, the bill may be higher than expected.
In addition, the supplier relationships BPO can be tense. If it is a foreign supplier, companies may face communication difficulties or even problematic cultural differences. Therefore, the pros and cons should be weighed carefully before deciding to use this practice.
BPO and Big Data
The benefits of Big Data are many, but many companies do not have the means to recruit specialized analysts or to invest in the necessary infrastructure. This is why many companies are turning to Business Process Outsourcing for data management and analysis.
The benefits of BPO for Big Data are generally the same as in other areas. It reduces costs, leaves executives and managers free to focus on the core business, and provides increased flexibility. In addition, you will be able to more reliable and faster results thanks to the expertise of experienced professionals from the Big Data.
However, several steps need to be taken before considering the outsourcing of Big Data. First of all, it is important to start with implement a Big Data strategy in particular by defining concrete objectives and needs. This strategy can be further developed with the help of the subcontractor.
It is also a good idea to outsource to a data analyst with an experience and understanding of your field of activity. For good reason, data analysis must be part of the reality of the business to be effective and reveal real threats and opportunities. However, the analysts you choose should also benefit from strong knowledge of mathematics, mastering Big Data tools such as Hadoop.
Also invest in the best Big Data tools, offering sufficient elasticity and performance so that the subcontractor can make full use of your data. Finally, make sure that you take important security measures through contracts that ensure that your data is protected and that your contractor complies with applicable regulations such as the DPMR. Data is valuable and sensitive, so it’s vital to take precautions when outsourcing its management…
In summary, Big Data Outsourcing offers many benefits for your business and will allow you to outperform the competition at a lower cost. However, it is important to be well prepared to outsource data analysis.
Business Process Reimagination: how artificial intelligence transforms BPO?
Over the past few years, the Business Process Outsourcing market has been strongly impacted by two emerging technologies The two main areas of expertise are artificial intelligence and Robotic Process Automation.
The reinvention of services related to RN and RPP technologies is referred to as the “reinvention of services”. by the term “business process reimagination”… . For good reason, these technologies not only reinvent existing BPO services, but also increase the penetration of shared services within companies.
In the field of data entry servicesFor example, automation reduces the risk of making mistakes. In addition, the data entry process is faster and more secure.
With Using Cloud Computinglarge, complex data sets can be managed more efficiently. Automated data entry enables real-time data entry and offers companies more flexibility and responsiveness.
According to NelsonHall experts, the market for Business Process Reimagination is expected to reach a total value of $8 billion by 2022. when it was only $701 million in 2017. This would represent an annual growth rate of 63%.
Nevertheless, the impact of artificial intelligence on the BPO market is not only positive. In recent years, as in other sectors, many professionals in this sector have lost their jobs due to automation.
Many companies are currently looking for the best way to deal with this profound change. One of the solutions seems to be to train employees for tasks that require decisions that are too complex and important to be left to an AI. This is for example the case for consulting, cloud and mobile services, or “Knowledge Process Outsourcing” (KPO).
Manual tasks, such as manual data entry, on the other hand, are likely to be massively automated. As a result, many people risk losing their jobs. However, in the long run, this technological transformation is expected to create more jobs than it takes away….