When starting a new business venture or project, it can be challenging when you don’t have enough resources, especially when it comes to core business processes.
Outsourcing business processes plays a significant part in solving these challenges. So much so that global business process outsourcing is projected to hit a staggering $525 billion by 2030. (Grand View)
Inefficiencies or disruptions in these core processes, however, can have significant consequences, including decreased customer satisfaction, financial losses, and loss of market share.
Therefore, businesses tend to prioritise the continuous optimisation and improvement of their critical business process to remain competitive and successful in their respective industries.
Outsourcing non-core tasks is daunting enough, as it requires placing trust in third parties to manage projects or tasks that produce results. Not to mention, choosing the wrong business process outsourcing services provider could have financial and security implications.
Outsourcing core tasks or projects may seem like a risky idea. And it can be. However, by choosing the right business process outsourcing or BPO services, you could reap the rewards that so many other businesses are today. There are significant benefits to outsourcing critical business processes. But before we jump into these perks, let’s take a look at what we’ll be covering in this article:
- What is a business process: core vs. non-core
- Critical business process outsourcing examples
- Benefits of outsourcing critical business process
What Is a Business Process: Core vs. Non-core?
A business process is a task performed to achieve an organisational goal. This can be anything from day-to-day tasks to strategies designed to drive business. There are non-core or non-critical and core or critical business processes.
Non-critical vs Critical Business Processes
A non-core or non-critical business process is an operational or functional task or activity that is necessary yet not a high priority in an organisation. It does not have a substantial effect on the value proposition, profits, or losses of a business. For example, this could be anything from administrative tasks to customer service.
A core or critical business process refers to a core activity within an organisation that directly contributes to its overall success and achievement of strategic objectives. In other words, a core process is anything that helps your business grow and maintain its competitive advantage. This includes essential processes like customer acquisition, marketing strategies, and financial analysis.
Critical Business Process Outsourcing Examples
Critical business processes can vary depending on the nature of the organisation and its industry. Here are five examples of critical or core business processes include:
- Sales and marketing: The process of identifying target markets, promoting products or services, generating leads, and converting them into customers through effective sales and digital marketing strategies.
- Customer relationship management: The process of building and maintaining strong relationships with customers, including managing inquiries, providing support, and addressing customer needs and concerns.
- Financial management: The process of managing financial resources, including budgeting, accounting, financial reporting, cash flow management, and risk assessment, to ensure the organization’s financial health and sustainability.
- Human resources management: The process of recruiting, hiring, training, and retaining talented employees, as well as managing payroll, benefits, performance evaluation, and employee development.
- IT infrastructure and support: The process of managing and maintaining the organization’s information technology infrastructure, including hardware, software, networks, cybersecurity, and technical support.
These critical processes are vital because they directly impact the organisation’s ability to achieve its goals, maintain operational efficiency, and deliver value to its clients or customers.
One way to do this is by utilising critical business process outsourcing services to ensure these goals are achieved.
Benefits of Outsourcing Critical Business Process
Outsourcing critical business processes can provide several benefits to organisations. Here are five of the key advantages:
1. Cost Savings
One of the primary reasons companies turn to outsourcing business processes is to reduce costs. Outsourcing critical business processes allows organisations to access specialised expertise and resources at a lower cost than maintaining in-house teams. It eliminates the need for infrastructure, technology, training, and recruitment investment, resulting in significant cost savings.
2. Increased Flexibility and Scalability
Outsourcing business processes provides flexibility in scaling operations up or down based on business needs. When demand fluctuates, external vendors can quickly adjust their resources to accommodate the changes, ensuring optimal efficiency. This scalability helps organisations avoid the costs and complexities associated with hiring and training new employees or downsizing during slow periods.
3. Enhanced Risk Management
Outsourcing critical processes can mitigate risks associated with business operations. Providers offering BPO services often have industry-specific knowledge and experience, which enables them to navigate regulatory compliance, security threats, market fluctuations, and other risks more effectively. They can implement robust security measures, disaster recovery plans, and quality control mechanisms to safeguard the organisation’s interests.
4. Improved Service Levels
BPO services providers are typically bound by service level agreements (SLAs) that define the quality, performance, and timelines of deliverables. This contractual commitment ensures a higher level of accountability and drives service providers to meet or exceed expectations. Improved service levels can lead to increased customer satisfaction, which is crucial for retaining existing customers and attracting new ones.
5. Global Reach and Market Expansion
Utilising business process outsourcing services can help organisations expand their presence in global markets. By leveraging the capabilities of offshore or nearshore service providers, companies can gain access to new customer bases and markets. This enables them to achieve faster market penetration, extend their operating hours, and provide support to customers in different time zones, resulting in improved customer service and increased competitiveness.
Wrapping It Up
There are various benefits of outsourcing critical business processes. However, when outsourcing critical business processes, assessing the outsourcing company’s reputation, reliability, security measures, and compatibility with your organisation’s values and culture is crucial to ensure a successful partnership.
Choosing the right outsourcing company can be confusing, especially if you’re new to outsourcing. But it doesn’t have to be. At blackbear, we carefully select the best professionals worldwide to bring you the highest quality services that your business so rightly deserves.
Ready for the next step towards streamlining your core business processes? Check out our demo – it’s free!