What is business process outsourcing company and how does it work?

Business Process Outsourcing company (or business process outsourcing for short) is the best type of outsourcing that involves close interaction from the outsourcing party to the customer. This process has been and is being applied to business process outsourcing, but not all businesses fully understand the concept of business software outsourcing.

So, L4 studio will help you to know the business process outsourcing, application development outsourcing, software outsourcing company and how that company can operate?

1. What is business process outsourcing?

1.1 What is business process outsourcing?

    “Business process outsourcing” stands for “business process outsourcing.” It is considered a business practice where a company contracts with an external service provider to do a vital business task. Particularly, a plant initially determines a process that is essential for its operations yet is not part of its core value proposition at this moment. This step requests a great deal of insight into the processes of the organization and sustainable business process management. 

   Processes that are done the same or similarly from plant to plant, like accounting, are candidates for business process outsourcing. As those commodity processes do not particularly differentiate one plant from another, company executives regularly identify that there is little value in getting their employees to perform them. 

   In reality, plants can calculate that outsourcing those processes to them and focusing on those processes might yield high outcomes. Business process outsourcing brings its roots production field. Producers rented third-party suppliers to deal with components of their supply chains after identifying that this process can take a lot of skills, and cost efficiencies to this process rather than an in-house group could convey.

1.2 Character of business process outsourcing

• Large manufacturing firms first used business process outsourcing to help with supply chain management,
• Business process outsourcing uses supply chains or third-party non-primary contractors to perform certain parts of their business.
• Today, business process outsourcing has expanded to embrace a wide range of industries, including service providers.
• Business process outsourcing is likened to “outsourcing” which means we have to work with suppliers and subcontractors in another country.
• Today, business process outsourcing is a distinct industry with businesses that specialize in providing business process outsourcing for businesses all over the world.

1.3 What Is a business process outsourcing Call Center?

There are three ways to classify business process outsourcing companies

   Based on geographical area: divided into 3 types of business process outsourcing: 

• Local outsourcing: Done by a company located in the same country and also in the same region as your company.
• Offshore outsourcing: a business that is located abroad
• Nearshore outsourcing: a business that is located in a close-by nation to yours.

Based on the service object: divided into 2 types of business process outsourcing:

• Outsource the back-office department: Outsource internal corporate operations like payroll and human resources to the back office department.

• Front-office outsourcing: contracting out customer-facing tasks like maintenance and technical assistance.

Based on service function: divided into 3 types of business process outsourcing:

• Knowledge process outsourcing (KPO): is when a company hires an outsourced service provider not just to conduct a certain business process or function but also to offer expertise in that process or function.
• Legal process outsourcing (LPO): is a particular kind of KPO that provides legal services, which might include everything from creating legal documents and conducting legal research to giving advice.
• Research process outsourcing (RPO): Research and analysis functions are another type of KPO; organizations that engage in RPO for services include marketing agencies, investment firms, and biotech companies.

2. Why choose business process outsourcing company?

   In today’s dynamic, fiercely competitive business environment, many businesses—from small startups to established corporations choose to outsource certain activities.

  In addition, some startups or small and medium-sized businesses will have limited personnel and a lack of experience in some fields. Therefore, they need an intermediary third party with high expertise in that field to help them solve their problems or meet their needs.

   The business process outsourcing contract will be short or long term depending on the needs of each company. But most of these activities usually take place in the form of project-based contracts. Business support areas that business process outsourcing companies such as accounting, law, IT services, human resource services, event organization,…

  As mentioned, business process outsourcing is also considered as “Outsourcing outsourcing.”  this is also one of the reasons that businesses choose Business process outsourcing companies because in some other countries there is a high cost. Low labor force, tax savings or political stability will help businesses to benefit and save more costs in projects.

3. How does a business process outsourcing company operate?

A business may choose to outsource a task, finding that a third-party service provider can perform the task better. Organizations must go through a process of not only identifying the ideal supplier for operations, but also having to switch tasks between internal and external vendors.

That requires a huge amount of change management, as moving to an outsourced provider particularly affects employees, established processes, and existing workflows. The factory may even invest in new technology to stimulate a better flow of work from the organization itself to the outsourced service provider, with the cost of that technology product depending on the scope of the functionality being covered. outsourcing and the maturity of the technology infrastructure in the region to some extent. enterprise.

   Business executives often begin this process by deciding which individual business tasks or processes to outsource to save costs, increase flexibility, improve performance, and reallocate resources. their core business competencies.

   The next question for business owners is whether one vendor should handle all the outsourcing work or if hiring different vendors for the diverse jobs will yield the best results. . For example, a business may choose to outsource most of its HR tasks and then hire one vendor to handle all of the tasks outsourced, or contract with two different providers, one for pay and one to manage benefits.

   These factors should result in a comprehensive list of specifications and scope of work for outsourcing. They are used by organizations to create a request for proposal (RFP) which they then share with suppliers to see if they can meet specifications, at what cost and value. any increase.

   An organization must choose the type of contract after selecting the supplier or vendors the organization intends to hire.

4. Criteria to choose a business process outsourcing company

    Enterprise executives should choose business process outsourcing providers who can assist them in achieving their business goals and becoming more innovative, flexible, and competitive. As a result, while selecting a provider, businesses should take into account more factors than just the contract’s cost. They must also take into account how well the supplier can fulfill those other requirements, assessing each provider to see if it possesses the following:  

1. A sufficient understanding of the business and sector of the corporation
2. The ability to scale up to meet future needs while also being able to meet existing requirements
3. Reporting statistics to show that it is fulfilling contractual obligations
4. A grasp of and capacity for meeting compliance, regulatory, and data privacy issues
5. The geographic areas that will satisfy both corporate needs and legal requirements.

5. What are the advantages and disadvantages of business process outsourcing?

5.1 The advantages of business process outsourcing:

• Save

The benefits of business process outsourcing are numerous. The fact that costs are reduced is one of the main benefits. Internally, it costs a given amount to carry out a particular job function. In order to lower the overall cost of carrying out that job function, business process outsourcing can lower these costs by outsourcing this task to an outside party, frequently in a less expensive country.

• Focus on core values

   Business process outsourcing frequently attracts businesses because it gives them more operational freedom. Enterprises can reallocate time and resources to core capabilities like customer interactions and product leadership by outsourcing non-core and administrative tasks, giving them an edge over rival companies in their market.

• Access to new technology

   Businesses that use business process outsourcing have access to cutting-edge technology tools they might not otherwise have. By implementing the newest technologies and methods, business process outsourcing partners and businesses continuously try to improve their processes.

• Ensure promptness and timeliness

   Business process outsourcing also provides businesses with the advantages of rapid resource reassignment as needed, improved productivity, and quick and accurate reporting.

5.2 disadvantages of business process outsourcing

•  Security breaches.

   As enterprises frequently need to exchange sensitive and regulated data with their service providers, this presents another point of entry for criminal actors.

• Regulatory compliance requirements

  The regulatory requirements of an organization apply to its outsourced work as well, so it must make sure that the vendors it hires comply with the laws the business must follow by all laws and rules that are relevant to the job it outsources.

• Unanticipated or higher costs

 The amount of work that has to be done can sometimes be underestimated by organizations, which can result in higher expenditures than expected.

• Relationship challenges

  Organizations may experience communication issues with their outsourced providers or discover cultural obstacles.

• Overdependence on the external provider

   When a company outsources a task or service, it is bound to the partner that completes the work. The business must oversee that connection to ensure that significant objectives are met at the agreed-upon price. If not, it could be challenging for the company to relocate the contract to another outsourced supplier or even bring the operation back in-house.

6. Future directions of the Business process outsourcing industry

Executives continue to specify and reorder from the vendors they hire to perform their business processes what they need and want.

When asking more than 200 business decision-makers and leaders about the criteria they would use to assess their business process outsourcing providers in 2021, the service provider CGS discovered the following:

• 6% put data privacy and compliance as their top priority;
• 9% want their providers to be a knowledge partner with advanced technology capabilities;
• 3% evaluate business process outsourcings on their technology platform capabilities; and
• 3% want business process outsourcings with in-depth experience in the organization’s own industry vertical.

7. Top Business process outsourcing companies in Vietnam

Seeing a lot of benefits and positives when applying business process outsourcing to business activities.

Therefore, the increasing demand for this activity has pushed more and more business process outsourcing companies to spring up, creating fierce competition in the market.

However, how do you find the right company when there are hundreds of business process outsourcing companies out there?

To make it easier for you to choose, we will introduce the most famous business process outsourcing company in Vietnam in this article. And here are four companies in Vietnam that specialize in providing business process outsourcing services, have brands on the market, and are, in our opinion, reputable companies that you can trust to cooperate with.

Let’s take a look at 4 business process outsourcing businesses below:

7.1 FTP Software

   Established in 1988, FPT Software currently has three headquarters located in Vietnam and offices in a number of other countries around the world, such as the United States, Japan, Malaysia, Germany, Australia, Singapore, Malaysia, Thailand, and the Philippines, To meet the needs of rapid business development, FPT provides BPO services to help businesses save on operating costs and focus resources on their core business areas.

FPT owns a dynamic, creative, always learning and always innovating staff. FPT also owns a large number of leading IT professionals in Vietnam.

   Currently, FPT Software is providing BPO services to more than 150 leading companies in the world’s 26 largest countries, including Hitachi, NEOPOST, Petronas, Deutsche Bank, and Unilever.

7.2 DIGI-TEXX VIETNAM

    is a business process outsourcing company established in 2002. Head office is on the 2nd floor of the Anna Building, Tan Chanh Hiep Ward, District 12, HCMC.

   With constant efforts and a team of young, enthusiastic, and passionate employees, aiming to build the values: “Creativity – Solidarity, – and – Dare to Think and Do,” to do”, DIGI – Texx has made its own difference:

• Using modern and innovative information technology in each project process, in order to optimize cost, accuracy and processing time.
•  Experienced staff in the business process outsourcing field, able to fluently use multiple languages at the same time.
• 24/7 service to support fast information processing for all customers around the world.
• The ability to settle large volumes of transactions/data in a short time saves time, human resources and costs for businesses using the service.

7.3 Bellsystem24-HoaSao

   Bellsystem24-HoaSao Joint Stock Company, formerly known as Hoa Sao Group Joint Stock Company (hereinafter referred to as Hoa Sao), is one of the first companies in Vietnam to provide professional solutions and services for contact centers and business process outsourcing (BPO).

   With 10 service centers operating 24/7/365 in 8 provinces and cities nationwide and a team of close to 4,000 people, Bellsystem24-HoaSao currently contributes to the success of more than 100 brands, making it one of the most successful companies. 

   Bellsystem24-HoaSao is confident in its ability to provide the enterprise’s customer contact operations on integrated omni-channel (Omni-channel) and full forms of interaction with a full chain of services and procedures.

   Bellsystem24-HoaSao pledges to deliver the greatest outcomes to its partners through self-developed distinctive technology products and strategic partnerships with the world’s top high-end technology brands.

7.4 THIENTU CO.,LTD

   Leading business process outsourcing and telecommunications services provider THIENTU CO., LTD. offers state-of-the-art outsourcing services for inbound and outbound customer support, voice and non-voice. with its main office located in Ho Chi Minh City, Vietnam, and four more branches spread out over the nation. THIENTU CO., LTD. provides clients with solutions both inside and outside of Vietnam.

   With 21 years of experience and a large staff of over 5,000, Thien Phu has become the leading business process outsourcing brand in the Vietnamese market, recognized and trusted by many international partners.

7.5 Pure Moderation

   Pure Moderation is a world leader in business process outsourcing services with extensive experience and a dynamic, experienced staff.

   Pure Moderation also prides itself on its after-sales customer care, including reliable warranties, staff training, and on-site and off-site support. After working with clients from many parts of the world, they build trust through high quality services, open and confidential communication. That is why Pure Moderation has been very successful in retaining customers (95%).

   Currently, Pure Moderation has a branch in Vietnam and also expands to many other countries in Southeast Asia.

Closing Ideas

That’s all about the business process outsourcing and IT support processes. We hope that through this article, you can find it useful to approach business process outsourcing company and understand a few other aspects of business process outsourcing company

Sources: Internet    

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