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SHIFTING THE PARADIGM
TOWARD EFFICIENCY AND COST- EFFECTIVENESS
By Tennille Bell , general manager : sales at Programmed Process Outsourcing
Business process outsourcing ( BPO ) is a business model whereby an organisation contracts a third-party service provider to perform an essential business function . While such processes are critical to the running of a business , they do not form part of the company ’ s core value proposition .
Business Process Outsourcing ( BPO ) has been around for longer than most people would imagine . Established after
World War II , BPO gained traction in the late 1980s .
While many still associate BPO with outsourcing call centres to foreign markets , BPO has expanded worldwide since then as more companies realised the benefit of reducing costs , increasing efficiency , and boosting customer service , all of which fast-tracked business growth while working with fixed , scalable resources .
BPO , now a USD26-billion global industry , has infiltrated almost every sector in every industry with the proliferation of the internet and digitisation . Yet South African businesses have been behind the curve on the uptake , reluctant to adopt this business model despite irrefutable benefits .
As such , we must ask ourselves : is it a case of misperception that hinders the uptake of BPO in South Africa ? Why wouldn ’ t businesses want to become more efficient and profitable ? How can we correct these perceptions and help business owners to unlock the benefits of BPO for themselves ?
BPO : BRIEF HISTORICAL CONTEXT In the early 2000s , organisations were concerned with world domination and , in their endeavours to expand their global footprints and increase competitiveness , businesses were quick to take advantage of the value delivered by BPO service providers . Initially outsourcing back-office operations to save costs , the advent of the internet enabled BPOs to completely diversify their service offerings .
They began managing other important aspects of the business - from accounting to data processing to human resources . Today , technology developments have empowered BPO providers to offer high-end capabilities , often incorporating multiple competencies to deliver increased value to their customers , by assimilating disparate products and services .
This transformation aligned with the global proliferation of cloud-based services and technology , marking the dawn of the “ Everything-as-a-Service era ”.
www . refrigerationandaircon . co . za RACA Journal I March 2023 45