What is Business Continuity Plan (BCP)? What is a business continuity plan (BCP)?
A business continuity plan (BCP) is a part of risk management strategy to help the business recover from potential threats. This includes cybersecurity attacks, weather-related calamities, and other force majeure events such as pandemics.
Business continuity planning involves listing all the possible risks that the business will face, how this will affect its operations, and how they can prevent this from happening. It also aims to protect the assets and resources of a company in case these threats happen. Business continuity plan template
Usually, BCP development consists of impact analysis, recovery, organization, and training. A BCP uses realistic and time-bound risks that commonly affect the business. Then, they can analyse how to prevent this and recover from setbacks of these risks. Templates to document BCP is available from resources on the internet.
What is Cost-cutting? What is Cost-cutting?
Cost-cutting refers to measures done to reduce costs while increasing profit. Businesses look at their expenses and seek ways on how they can improve their spending.
The definition of cost-cutting may come in the form of downsizing to a smaller office, closing down branches, or laying off excess employees.
Cost-cutting does not always mean that a business is failing. These measures apply to any stage, whether they are starting, expanding, or already maintaining their size.
Usually, entrepreneurs who cut their expenses aim to increase their savings and profit since they have limited cash flow. Cost-cutting strategies
There are different ways to cut costs, such as bartering and finding alternatives to availed services, finding a lower office space with better amenities, and going digital. Business Process Outsourcing (BPO) is also a good way to save costs without sacrificing service quality.
India and the Philippines, the most popular outsourcing destinations, offer a wide range of services at a fraction of the cost versus hiring in-house employees. Cost of hiring a BPO
Hiring a BPO provider can totally transform a company’s revenue and free up working capital. However, the total cost of outsourcing varies depending on each job function and location of the outsourcing company.
Outsource Accelerator helps you save up to 70% on costs compared to developing a fully-staffed in-house department. It covers all the expenses needed in setting up a team — such as office space, equipment, and tools — so that you do not have to worry about those things anymore.
Employee salaries, benefits, onboarding, and training are also managed already. The only thing you need to think about is the tasks that you want to delegate to your offshore team.
What is Business Process Outsourcing (BPO)? What is Business Process Outsourcing BPO?
Business Process Outsourcing (BPO) is the engagement of services from a third-party provider. BPO uses various technology-enabled services to hasten the delivery of services. The business activities could be back-office such as, but not limited to, payroll, accounting, human resources, or front office jobs like customer service, sales, and marketing, etc. In the case of content providers, these business activities could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business activities use their time on core services and competencies. With this shift in focus, companies improve their current processes that may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies. Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. How does Business Process Outsourcing work?
When a business engages an external specialist to manage and operate some of its internal processes, it's referred to as business process outsourcing. Such ‘processes’ include customer service, accounting and finance, or sales. It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.
Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing. What are the benefits of business process outsourcing?
There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include: Cost savings: significant savings of up to 70%, leveraging the lower global salaries Global market: access to a bigger employment pool of talent Global presence: having operational across the globe increases trade opportunities Flexible workforce: reduces internal local labour and employment compliance obligations Leverage skill: leveraging the skills of other specialist companies Focus: enables the client company to focus on their core functions
Business process outsourcing examples
The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing many millions of people worldwide. Some examples include: Big enterprise
Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber Medium-size businesses
A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines. Small business and entrepreneur
It is common for small business owners to have a Virtual Assistant (VA) working for hem full time, remotely from the Philippines. What are the different types of BPO?
The type of business process outsourcing can be characterised by their specialisation, location, and size. Generalist or specialist BPOs
Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalist, in that they offer a full range of professional services, although some specialise in certain verticals (ie accounting, or animation). Location
Business process outsourcing typically operates form developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages. Size of BPO
The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people. Functions of business process outsourcing
Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include: Finance and accounting: operational, technical and specialist functions Healthcare: various functions of the backend of the healthcare and health-insurance industries Creative and content: everything from post-production of Hollywood movies to newspaper and website content Tech, IT and development: network management, web and app development and maintenance Sales & customer support: ongoing sales and customer operational support and delivery Marketing: ongoing marketing, communication and branding activities Talent and HR: externalising the management of company HR, recruitment and compliance Administration: general business administration and operational activities Top BPO companies in the world's top outsourcing hubs
A wide range of BPO companies in different parts of the world provide utmost services to their Western and local clients. Many of them have even earned awards and recognitions by award-giving bodies due to their performance on both the roles they take and on their way of taking care of the employees.
Check out the top BPO companies in several outsourcing destinations below: Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 4,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, business process outsourcing.