Five Advantages of BPO for Small Businesses

How small businesses benefit from outsourcing

You might think Business Process Outsourcing, or BPO, is only for large corporations with entire departments to outsource. BPO, however, can benefit small to mid-size companies as well. 

Key takeaways:

  • BPO offers many benefits to small and mid-size companies.
  • You can outsource billing, payroll, data entry, and other functions, often at a much lower cost than handling these duties in-house.
  • It saves you time and money on hiring in-house employees.
  • You may experience increased productivity as most BPO firms monitor employees’ results and implement high standards.
  • It can free up your in-house employees to focus on activities that grow your business such as sales and client outreach.
  • You can choose what functions to outsource, meaning you’re in control of the work that you delegate. 
  • Outsourcing your answering service could extend your availability to clients and customers. Answering services can accept calls after hours.  
  • Be sure to work with a reputable BPO firm that can meet your unique needs. 

Your small business may already employ contractors or freelancers to ease workloads and obtain outside expertise. Perhaps you hire independent contractors to perform services or you work with consultants on high-level decisions. 

BPO is an extension of this type of business relationship. According to Forbes, “…in BPO, subcontractors perform essential business operations in lieu of internal staff.” The industry provides outsourcing for a variety of specific business functions. Rather than hire in-house workers to handle billing, payroll, data entry, and other duties, outsourced employees can manage these tasks for you – often at a much lower cost.

Forbes reports that BPO has expanded in recent years. This trend is expected to continue, with more small companies experiencing the rewards of outsourcing. See why BPO is so beneficial for small businesses.

The benefits of BPO for small businesses

1. Hassle-free hiring

Hiring in-house employees can come at high costs for small businesses. Besides an employee’s salary, there’s health care, paid sick days, vacation time, and other expenses. It can all add up quickly for a small team. BPO can offer the productivity benefits of an employee without the extra expenses.

In addition to saving money, you’ll save time on lengthy interview processes and reference checking. When you hire a BPO firm, they’ll recruit talent for you to meet the task(s) at hand. 

2. Increased productivity

Most BPO firms closely monitor employees’ results and implement quality and time management standards. As a result, you may find that productivity increases with the task you’ve chosen to outsource. Whereas in-house employees may become busy with other tasks or distractions, outsourced teams only need to focus on their specific job function whether it’s data entry or lead generation. 

3. Ability to grow your business

BPO frees up your in-house employees to focus on functions that grow your business such as sales, developing new products and services, and/or expanding your client base. In most cases, BPO will also save you money over hiring in-house employees, giving you the ability to allocate resources elsewhere. 

4. Pick and choose what you outsource

BPO firms targeted to small and mid-size businesses offer outsourcing on a variety of tasks including answering phones and directing calls, appointment scheduling and calendar management, event registration, order processing, tech support, billing and payroll/benefits, and much more. Smaller companies can generally use to outsource one of these tasks or a combination of them. Having the freedom to choose how much or how little to outsource allows small businesses to ease into BPO at the level they feel most comfortable with. 

5. Extended hours

If you choose to outsource your answering service or other call center activities, you may be able to offer round-the-clock service for your customers or clients. Outsourced call centers typically offer extended hours beyond what an in-house employee would be expected to work. And if you’re working with a BPO firm, they’ll handle the 24-hour staffing. Rather than having an in-house employee take calls after hours, you can outsource this function and be able to respond to customers and clients even when you’re not in the office. 

The bottom line

If you’re a small business and want to experience the benefits of BPO, look for a company that can tailor its offerings to meet your unique needs. Some firms specialize in one area of office administration whether it’s human resources or marketing or data entry.

If you know your needs are in one area, you might consider a specialized BPO firm. Whichever route you choose, make sure you’re working with a reputable company with a proven track record of meeting client needs. Reputable firms should be able to recruit highly-trained global talent, meaning your small business will benefit from skilled workers at a lower overhead cost.

DOXA for small businesses

At DOXA, we know there’s no one-size-fits-all solution. We’re founded by entrepreneurs for entrepreneurs so we’re familiar with the challenges of running a small business or startup. We deliver a custom approach tailored to your specific needs. We pride ourselves on giving local businesses access to global talent that can help them scale their operations. Contact us today to learn what we can do for your small business.

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