Outsourcing, as well as business process outsourcing (BPO), have become popular alternatives to hiring full-time employees in-house or hunting for freelancers on Upwork. Nowadays, you can find an outsourcing solution in any corner of the world and reap the benefits of geoarbitrage!
Top reasons a business should consider using a BPO provider for HR:
- Time savings
- Cost savings
- Increased flexibility and scalability
- Choice of location
- More flexibility to focus on priority business activities
- Coverage in any timezone
- Ability to hire on a project-based basis
- English speaking staff
- Global Expansion
BPO, also known as subcontracting or externalization, is a subtype of outsourcing where a company delegates some business processes to a third-party provider. There are some distinctive reasons why businesses should choose the services of professional BPOs rather than doing everything on their own. And in this article, we will particularly look into the benefits for HR departments.
Why should you consider using BPO for hiring?
Firstly, BPO providers can be of different types:
- Onshore outsourcing: When an organization hires a service provider that is located in the same country. This is also called domestic outsourcing.
- Nearshore outsourcing: When an organization hires a service provider in a neighboring country.
- Offshore outsourcing: When an organization hires a service provider in a different country.
Each of these BPO types has its advantages. In particular, BPOs for HR can assist your business with the following:
- Handling HR activities
- Payroll and benefits administration
- Developing and implementing training programs
For recruitment, they can manage the following tasks:
- Placing job ads
- Advertising job listings
- Filtering applications
- Conducting interviews
- Negotiating offers
How can your business benefit from BPO?
As you saw above, there are plenty of tasks a BPO company can handle for you. Moreover, they can provide staff in several areas including:
- Back office operations, such as payment processing, information technology services, quality assurance, ETC.
- Front office operations such as marketing, sales, customer relations, customer support and tech support.
One of the biggest benefits of outsourcing is of course to save time on dealing with the hiring process. BPO providers will find the right person or team for your business.They will as well complete all related processes without the involvement of another party.
Manpower or in-house employees are usually the main expense of a business. Additionally, the recruitment process is time-consuming and costly. If you want to save money, BPO is the best option.
In outsourcing your hiring processes, you no longer have to manage this part of the business internally. You instead get to save on expenses for payroll and staff training.
Typical outsourcing destinations also have lower costs of living and salaries. On top of that, employees in these destinations are often working remotely from home, reducing costs even more.
A company from the UK or USA can outsource HR to a BPO based in India or the Philippines, however we would recommend South Africa. The country provides the native English speaking cultural compatibility you’re looking for at a fraction of the cost, while also having access to top quality talent!
According to a recent study, European companies tend to save up to 50% on staff by hiring in this beautiful land. South African workers will satisfy all your needs and fit into your budget.
Increase flexibility and scalability
Due to the elimination of the most difficult processes, namely hiring, a company will instantly become more flexible and scalable when using a BPO. Hence, outsourcing is a great decision for small businesses that are ready to grow.
Moreover, a BPO can allow a business to proceed with onboarding a new hire much faster than if the company was handling that all on their own.
Nonetheless, hiring fast doesn’t mean not being selective. Many BPOs already have a team of workers who’ve been handpicked from high standards of training and testing, as we do at Support Adventure. We hire less than 3% of all applicants.
Choose a location
Using BPO will also allow business owners to tailor staff locations to whichever time zones and locations they desire. For many years, the traditional destinations for outsourcing have been India and the Philippines, largely due to their low costs and large workforce. Today however, with so many people working remotely, businesses can hire high quality employees from anywhere.
Focus only on the priorities in your business
While hiring contributes to the expansion of your business, it unfortunately can take a lot of time and energy. Delegating this to a BPO allows businesses to focus on other important tasks they haven’t had enough breathing room to dedicate undivided attention to.
This is especially vital in the growing stages of the company. An outsourcing provider saves time for the business and helps the management team explore new revenue areas, work on other projects and focus on their customers. That is why using a BPO can lead to improvement in productivity.
Choose any timezone
While scaling your business, you might also want to enter new markets in time zones outside of your local working hours. This factor is especially important when outsourcing customer support so that you can choose staff in the same time zones where some of your non-local clients are.
Using a BPO will give you greater coverage of international working hours since contracted staff typically live in countries that are ahead of US time zones.
Hire on a project-based basis
Some businesses might be looking for staff only for one or two projects, but don’t want to deal with unreliable freelancers. In that case, some BPO providers can offer you workers within short-term agreements or on-call coverage if there is scarce work to be done.
Choose English speaking staff
By outsourcing staff to a BPO, companies can select their preference of native language, which often happens to be English. You can work with a BPO like ours that employs English-speaking expats living in more affordable places around the world, thus offering competitive prices.
Productive and well-performing employees
By outsourcing hiring to a third party provider, you can significantly improve HR productivity levels. Companies today require efficient human resources that can generate economies of scale.
Outsourced staff often can show better results in productivity and performance than in-house employees. For example, the KPIs of companies who rely on outsourcing tend to be higher in terms of:
- Average handling time
- Average response time
- Average speaking time
Businesses can have an effective and efficient staff by using the services of BPO providers.
BPO vs. Hiring Freelancers
What is the difference between using BPO staff compared to freelancers?
BPOs are professional companies with their own set of supervisors. Employees of BPOs are well trained and know how to create value for their clients.
When hiring freelancers, a company will deal with independent individuals who may not deliver the desired results due to developing their own standards. Moreover, freelancers are often engaged in multiple projects, hence they may not be wholly dedicated to your company like an outsourced full-time staff would be.
If this article has enhanced your excitement about working with a BPO, we advise you not to wait any further to request highly talented candidates from us! We specialize in providing IT technicians for MSPs around the world. Our employees have all the skills your organization needs for a fraction of Western prices. Learn more about our offerings here.