What is Seat Leasing? What is seat leasing?
Seat leasing is an outsourcing business model where clients prefer to handle the recruitment, training, and management of their employees, without wanting to concern themselves about physical assets such as desks, computers, internet connections, and maintenance of facilities.
It is also the practice of leasing desk and office space from any outsourcing company who have already invested in the essential aspects of sourcing, implementing, and maintaining the physical infrastructure necessary for an online business.
This allows companies to quickly get offshore operations up and running while keeping a cost-efficient investment. In addition, most companies can also enjoy the security and other services — including maintenance — that come as part of their lease deals. Seat leasing services
There are various methods of seat leasing in different countries. However, it usually involves offering customers two options: warm seat leasing or cold seat leasing.
For warm seat leasing, clients are given access to the more essential aspects of the service. This includes office seats, supplies, and work equipment, as well as additional staff to help keep the company's operation going.
Staff included in warm seat leasing usually do back-office management services. This includes virtual assistance and administration, human resources, accounting, marketing, or basic IT services.
Cold seat leasing, meanwhile, only includes office seats, tools, and equipment needed for a client's day-to-day operations. Companies that invest in this option usually have their staff or a small team of employees who are ready to occupy the office space. Seat leasing in the Philippines
Seat leasing is arguably the most basic form of business process outsourcing, where only the IT and office infrastructure is delegated to a third-party service provider while the recruitment and management of the employees are done by the client directly.
The next level of outsourcing is staff leasing, where the BPO company is contracted to provide the staff needed by the business.
Outsource Accelerator’s directory lists over 700+ outsourcing companies in the Philippines. All of these are carefully selected for innovation, expertise, and technology that will benefit our clients. We also provide you with guidance on the best seat leasing options you can get in the Philippines for your business. What are the benefits of BPO seat leasing?
There are several reasons why leasing a BPO seat is not only advantageous but also the best investment that a company can make. Here are several examples of them: For startups and SMEs
Small businesses frequently have a difficult time getting a location for themselves due to landlords taking advantage of the scarcity of available spaces to rent thus, offering higher rental costs.
Seat leasing is beneficial for this type of business operation due to the following reasons: Cost efficiency
The cost-efficiency of BPO seat leasing is beneficial to small and medium enterprises. A company's location is a valuable resource, especially in urban areas. With established companies willing to occupy any spaces for the continuation of their business operations, rental costs are continuously rising.
Seat leasing solves this dilemma for SMEs and start-ups. The monthly payment for seat leasing services is cheaper than renting traditional office space — one that is seen as a luxury for start-ups and small businesses. Fully-furnished spaces
In addition to providing ready space for companies to make use of, seat leasing services come already fully furnished, sparing you the burden of having to finance your equipment.
Additionally, seat leasing services are easily customizable to perfectly suit the needs of a company and the industry that they belong to. You can also manage your seat leasing deals to reflect the overall brand of any organization. Up-to-date equipment
Outsourcing providers have specialized office desks and workstations that are equipped with modern hardware and software to meet the customers' needs. Their computer networks also operate with advanced software that ensures the safety of your company's confidential data.
Moreover, any dedicated office space, hardware, or seat leasing equipment is designed to promote productivity and ease in doing business operations within a seat leasing facility. For established organizations
It may seem unlikely that established call center companies would need to seat lease office space outside of their own, but several BPO companies do. Additional capacity
Even the largest BPO companies with entire buildings can find themselves in need of additional capacity to run their business. Several companies rotate their workspaces in shifts to give all employees their own desk space.
Through seat leasing, call centers can rent out a coworking space for their employees to bring their own devices and use the rental desk and internet connection.
High-ranking employees who have their company-issued laptops and might have to work longer hours will benefit from this arrangement. Additional services
Another attractive feature of seat leasing is that it lets property owners and employers add additional services for the workers. Features like game rooms, vibrant meeting rooms, quality furniture, and the availability of pantries all cater to an employee’s satisfaction in the workplace.
This helps promote the comfort, and therefore productivity and satisfaction of employees within a company. Easily expand operations
Through seat leasing, big companies can scale their operations up or down, depending on the market demand. This means that they do not need to go through the hassle of finding another office space, renting it, and fitting it with the equipment needed for the job.
With seat leasing, companies only need to hire a seat leasing partner and immediately move the rest of their operations into the leased spaces.
What is What is business process outsourcing? What is Business Process Outsourcing BPO?
Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.
Some of the usual outsourced business functions are the following. Payroll
In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.
BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.
With this shift in focus, companies improve their current processes which 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. Outsourcing services can also help them save costs and resources in hiring suitable employees. How does Business Process Outsourcing work?
Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. 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
Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India. Global market
Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries. Global presence
At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area. Flexible workforce
BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm. Leverage skill
Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT. Focus
Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider. Business process outsourcing examples
The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.
BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO 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 them full time and 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 generalists, in that they offer a full range of professional services.
Meanwhile, some specialise in certain verticals such as the following. Legal process outsourcing
Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.
Knowledge process outsourcing
Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives. Location
Business process outsourcing typically operates from 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
Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss. Healthcare
Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries. Creative and content
Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content. Tech, IT and development
IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries. Sales & customer support
Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase. Marketing
BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way. Talent and HR
Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management. Administration
Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions. Supply chain management
Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes. Top BPO companies in the world’s top outsourcing hubs
A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for 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
With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.
Good thing advisory services such as Outsource Accelerator is there to help them.
Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.
Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.
Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!