Companies spend an estimated $230 billion on business process management worldwide. These span from customer-service functions like call centers to back-office processing in applications such as claims, payments, finance, and procurement.
Keeping an in-house customer service department requires much work. There’s a continuous process of recruiting, hiring, and training. Start-ups and small businesses often have limited resources, and employing and training a dedicated customer service team can be costly. Many companies are partnering with a BPO for their call center operations to take advantage of the cheaper labor costs in offshore and nearshore locations. This saves them significantly on employee salaries, benefits, and training expenses.
Setting up an in-house team of call center agents also requires a significant investment in infrastructure, such as office space, furniture, computers, telephony systems, and network infrastructure. Businesses might save these capital expenditures through a BPO. BPO providers have the essential infrastructure, saving companies money on equipment and maintenance.
BPO allows businesses to pay only for their needed services rather than the fixed costs of maintaining an in-house call center. The pricing model can depend on call volume, operating hours, or performance metrics. Because of this scalability, businesses can only pay for their services, resulting in cost savings during low call volume periods.