Learn more about our services

Customer Experience

Business Process Outsourcing (BPO) as a Cost Optimization Tool

BPO picture

Why did we decide to consider business process outsourcing (BPO) from the perspective of cost optimization? There are several main reasons for this. Firstly, it is a global economic trend towards increased efficiency, vividly represented by the automation of business processes through RPA. Secondly, it is our life in an era of constant change demanding continuous adaptation from businesses. Outsourcing happens to be one of the tools for operational transformation of business processes under changing realities. So, let’s explore what BPO is and what advantages outsourcing business processes provides.

What is Business Process Outsourcing (BPO)?

According to Deloitte, in 59% of cases, companies resort to business process outsourcing for control and cost reduction. When considering outsourcing from an optimization standpoint, the most accurate definition is:

Business Process Outsourcing (BPO) is a business practice involving the delegation of certain functions (production, service, informational, financial, logistic, managerial, etc.) or business processes (organizational, financial-economic, production-technological, marketing) to an external organization that has the necessary resources based on a long-term agreement to reduce costs for the client company.

In practice, business process outsourcing (BPO) aim to improve the quality of end products/services and, consequently, increase company profits by involving specialists/professionals with better competencies in the operational chain. Let’s provide two examples:

  1. Startups often have to outsource back-office and front-office functions because they lack resources for developing the workforce and support functions to perform them internally.
  2. A large, established company may decide to use contact center outsourcing services if the analysis shows that servicing customers with a team of professional operators will improve service quality and reduce costs.

Types of BPO: Horizontal vs. Vertical Business Process Outsourcing

Horizontal BPO and vertical BPO are two types of different business process outsourcing strategies that a company can delegate to an external service provider.

Horizontal BPO

Horizontal outsourcing of business processes involves outsourcing non-core functions or processes that are common to different industries or enterprises.

For example, many companies outsource their technical support functions, call center outsourcing, auditing, recruitment outsourcing, or staffing to specialized service providers who can perform these functions more efficiently and cost-effectively than the company could independently. Horizontal outsourcing can help a company reduce costs, increase efficiency, and focus on its core competencies.

Vertical BPO

Vertical outsourcing, on the other hand, involves outsourcing specific business functions or processes that are unique to a particular industry or market. For example, a pharmaceutical company may outsource drug development or clinical trials to specialized contract research organizations with the experience and resources to perform these activities more effectively.

Or an IT company may outsource the development of a specific type of software. Vertical outsourcing can help companies gain access to specialized expertise, reduce risks, and increase competitiveness in specific markets.

Ultimately, the choice between horizontal and vertical outsourcing depends on the specific business goals of the company, the industry, and the competitive environment.

Business Process Outsourcing BPO Benefits for Business

Global crises force companies to rethink their work algorithms in turbulent conditions. Business process outsourcing (BPO) has already become an integral part of doing business worldwide, as companies can receive competent service, save time, and significantly optimize costs.

Most commonly, outsourcing involves the management of finances, personnel, marketing, legal support for organizations, and contact center outsourcing. Among Ukrainian companies, the outsourcing of functions related to information technology and corporate information systems management is also very popular. So, what are the advantages of outsourcing business processes?

In general, business process outsourcing offer the following benefits:

Reduction of Operational Costs

Outsourcing operational and administrative functions is always cheaper than performing them in-house, especially for large businesses. By outsourcing certain tasks, you pay for a package of services, avoiding the need to hire individual employees.

Moreover, for an outsourcing company, what they do is their core business. Consequently, they will be interested in providing clients with the highest level of service. The resources saved through outsourcing can be redirected to the development of the company’s core business.

Preservation of a Compact Company Structure

The more functions are outsourced to contractors, the fewer in-house employees you need.

Thus, by using business process outsourcing, you can maintain a compact and flexible company structure and save on expensive infrastructure (office, equipment, software, etc.).

Utilization of Innovative Technologies

Large companies do not always keep up with rapid technological developments. To leverage business process automation and robotics (RPA), cloud services, or modern equipment to optimize specific processes, it is better to turn to an outsourcing company with a high level of technological support.

This allows companies to benefit from new technologies and improve operations at lower costs.

Simplification of Project Task Execution

Every company reaches a point where it needs to complete tasks it has not encountered before, such as launching a network marketing campaign, conducting an audit, or market research, developing software, etc.

In such cases, it is simpler, cheaper, and faster to use the services of experts through outsourcing. The end result when using a qualified contractor will be of higher quality.

Business Process Outsourcing (BPO) in Crisis Situations

Using outsourcing as a contingency plan is particularly relevant for large organizations. For example, a company has a call center that provides 24-hour customer support. Suppose, for some reason, its operation is temporarily suspended.

Outsourcing the contact center allows continuing uninterrupted customer service.

Additionally, any company should have a list of outsourcing partners who can temporarily take on part of the functions in unforeseen circumstances.

Every company can optimize its business processes and significantly reduce costs through outsourcing. To achieve this, it is necessary to determine which functions need to be controlled independently and which can be delegated to contractors.

Experience of Global Bilgi in BPO

Your business should evaluate the advantages and opportunities of using business process outsourcing (BPO) from Global Bilgi if you are asking yourself the following questions:

  • How to save on secondary functions of the company?
  • How to spend fewer resources and time on supporting operational activities?
  • Do I need such a number of employees?
  • Can secondary processes be managed faster and more efficiently?

With 15 years of expertise in providing top-notch business process outsourcing, Global Bilgi understands the complex needs of businesses in various industries. Whether you operate in the service, finance, technology, telecommunications, or any other sector, our vertical BPO approach ensures that industry solutions perfectly meet your business requirements.

Why choose us for Business Process Outsourcing?

Excellence Priority in Cost Reduction

Cost consideration is an integral part of any business solution. Global Bilgi understands the delicate balance between economic efficiency and service quality. By leveraging economies of scale and process optimization, we offer cost-effective solutions without compromising excellence.

Service Spectrum

BPO call center
Outsourcing of business processes includes a wide range of services, which is far from limited to the contact center or back office

You can order market research, audits, back office outsourcing, recruiting outsourcing, outsourcing services, IT development, and business process automation from us.

Regardless of whether it involves customer support, technical assistance, or back office functions, Global Bilgi provides a wide range of services. Our comprehensive BPO approach allows businesses to optimize various operations under one roof, promoting efficiency and cohesion.

Customer Support in Multiple Languages

As a leading international company with extensive experience in outsourcing contact center services since 2008, we focus on high-quality contact center outsourcing services for major international clients in various industries.

We understand better than anyone that language should never be a barrier in the globalized business environment. The Global Bilgi team is multilingual, offering comprehensive support (technical support outsourcing, social media support, email support) to serve your customers, enhancing their satisfaction and market coverage.

Continuous Improvement

Global Bilgi supports a culture of continuous improvement. Regular assessments, feedback cycles, and active adjustments ensure that your outsourcing processes remain flexible, efficient, and align with the best industry practices.

Support at All Stages of Collaboration

From the initial consultation to seamless execution of outsourcing processes, Global Bilgi provides comprehensive support. Our holistic approach ensures that you can focus on your core business competencies, entrusting your outsourcing needs to competent professionals.

Experience the transformative power of Business Process Outsourcing (BPO) with Global Bilgi, where excellence meets innovation. Elevate your business processes to new heights—contact Global Bilgi today to unleash your business potential!

Related posts
Customer Experience

What determines the cost of contact center outsourcing services at Global Bilgi

Customer Experience

What is customer experience, and 6 metrics to measure it

Customer Experience

What are upselling and cross-selling?

Customer Experience

How to Improve the NPS Index in the Call Center?

Sign up for our Newsletter and
stay informed