Building the Business Model of the Future
Today’s world is connected in a way like never before and this connectivity offers tremendous opportunities for businesses. We are no longer constrained by geographical boundaries. The covid-19 pandemic forced businesses to take a look at their business models and explore ways to future-proof them against unexpected shocks. One of the ways in which a sustainable business model can be built is through Business Process Outsourcing (BPO).
Let us take a closer look at the BPO business model and how businesses can efficiently adopt this proven approach for future success.
Important Considerations for Setting up a Business Model based on BPO
#1: Strategic Impact
For businesses to be competitive in today’s global market, they must take a new approach to their everyday business processes. One winning strategy is to outsource non-core business functions so that in-house teams can focus on tasks directly related to the growth of the business.
There’s no one-size-fits-all strategy since different businesses tend to define their core processes differently. So consider the strategic impact that outsourcing will have on your business. List all of your business’s strategic objectives and then list all of the business processes that directly affect those objectives. Anything not on that list can and should be outsourced.
#2: Business Impact
Businesses must be built on a solid foundation to be successful. However, that foundation must constantly be strengthened to maintain success. Look at businesses that were successful but refused to adjust their base processes and eventually failed because of their stubbornness.
A BPO business model will force businesses to analyze their current strategy to make sure their focus is on building fundamental growth and not wasting time on trivial tasks. All businesses benefit from this type of auditing. This is one of the main reasons why BPO is the business model of the future.
#3: Financial Impact
BPO is often seen as a way to decrease the cost of operations in a business but this isn’t the only benefit. Sure, outsourcing certain tasks are much more budget-friendly but the financial impact goes far beyond just saving money. Globalization of businesses has enabled access to highly qualified specialists in almost every facet of the business.
Outsourcing does lower labor costs but it also ensures that highly qualified specialists are performing tasks which they are good at. Therefore, the financial impact is seen in the fact that a business will have a higher quality outcome. Consider the financial impact before moving forward with a new BPO business model. Just don’t focus on cost savings alone. Consider the quality improvement as well.
Revising business processes will require businesses to make deep changes so there will be some areas where this just isn’t possible right away. Not only are there legal obligations that a business must consider, but they also have to look at the service providers available. Are they more qualified than your in-house team? Do they have the strategic expertise or local presence to deliver true business value?
Businesses must make sure that a new BPO business model meets their needs, both in the present and future.
#5: Business and Operational Risks
Finally, businesses must analyze the risks involved in adopting a new BPO business model. There are a lot of benefits that come with outsourcing so the key is to determine whether those benefits outweigh the risks.
Benefits of adopting BPO as the Business Model of the Future
Developing a BPO business model comes with a lot of benefits including:
- Allowing in-house teams to focus on important customer-centric processes rather than routine, non-revenue generating tasks.
- Reorganizing everyday business processes will force you to reevaluate them. This results in productivity gains and versatility.
- Gaining access to experts that are more skilled than an in-house team in specific areas so they can cost-effectively deliver high-quality work.
- Get tasks done around the clock by outsourcing to countries like India, where the experts will work on tasks during your off-hours.
A BPO business model is not some magical remedy for inefficient business processes but choosing to open your mind will reveal some of these inefficiencies. Businesses must carefully consider which processes are to be outsourced though. Choose tasks that are not directly related to the growth of your business for outsourcing.
Covid-19 has forced all of us to re-evaluate our business models to build a foundation for future success. This has caused the BPO business model to emerge as a viable, and in fact, a much superior option. BPO provides a strategic boost to businesses that goes far beyond cost-saving. To discover how BPO services can do the same for you, get in touch with BackOffice Pro today.
– BackOffice Pro