Business Process Outsourcing: Increasing productivity at a lower cost

Business Process Outsourcing: Increasing productivity at a lower cost

Picture of Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

t7083byjBusiness process outsourcing allows other departments of a certain business to be performed by a third party. Due to high demand in manpower and that companies nowadays have staffs working until seven to late at night just to comply and meet the demands outsourcing has become a must for most. Organizations nowadays are forced to explore available tactics to remain competitive due to the current decline in the economy. Business process outsourcing of certain functions will improve basic services while allowing the company to remain afloat and have time to do strategic role in their organizations. These areas may include, prospecting, customer service, technical support and marketing. This approach can cut cost in the company’s budget as outsourcing especially offshore is considered a cost saving approach. Let’s discuss the reasons for outsourcing.

Outsourcing is a great way to save money. An average hourly rate for an assistant maybe $10 to $12 an hour. A virtual assistant that is outsource only costs $4 to $5 an hour, that is more than half the price. The company can focus on strategy to further enhance their business by leveraging some repetitive tasks and minor customer issues that can be handled by an outsourced customer service. Hiring an outsourced representative will improve accuracy of your records as the outsourced human resource are mostly college levels and are up to date with their data recording and can immediately follow steps. When you are tight with your budget and need to hire someone with enough experience in accountancy for example, this can be outsourced at a lower price. The technological advances has helped a lot of companies to outsource their customer service and technical support staff allowing them to cater to more customers.

Business process outsourcing or BPO is an emerging industry in the Philippines. Regarded as one of the fastest growing industries in the world, BPO services is predicted to reach $180 billion in 2010 according to McKinsey & Co. The recent trend in primary business tend to shift from cost effectiveness to skills quality and competence. This is the advantage that overseas investors see in the human resource in the Philippines a very high quality of service skills at a much lower cost. Continued in- house development are provided by BPO centers in the Philippines to ensure that all their dedicated representatives are up to date with their knowledge and that they also learn to manage all the calls they take. Since many clients have many demands all of these are met maintaining a higher standard of training.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting

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