What are the benefits of business process outsourcing?

Companies nowadays are looking for ways to stay nimble while focusing on what they do best. Business process outsourcing (BPO) has become a popular strategy, with YouGov data revealing nearly 70% of UK businesses are now using some form of outsourcing. 

When done right, outsourcing specific functions frees up your time and resources to focus on your core activities. Let’s explore how smart outsourcing could transform your business. 

What is business process outsourcing (BPO)? 

Business process outsourcing means hiring specialist companies to handle specific business functions for you. This goes beyond just using temporary staff—it’s about working with established professionals who excel in particular areas and can seamlessly become part of your operations. 

Modern BPO covers nearly every aspect of business—from answering phones and handling reception duties to marketing, HR, finance, and customer service. What makes it powerful is that it connects your business with expertise that would be expensive or impractical to develop in-house. 

Rather than just cutting costs, BPO is now a strategic approach that gives businesses access to top-tier capabilities without the overhead of expanding their team. 

How does business process outsourcing (BPO) work? 

BPO creates a partnership between your business and specialist service providers who take responsibility for specific functions. Here’s how it typically works: 

• Identify needs: Figure out which processes would benefit from outsourcing based on required expertise, resources, and importance to your business 

• Find the right provider: Research and select partners with the right skills, experience, and cultural fit 

• Get them up to speed: Brief the provider on your business requirements, preferences, and processes 

• Let them handle it: The provider manages the outsourced function according to your agreed terms 

• Regular check-ins: Review and refine the relationship to ensure it’s working well and adapting to your changing needs 

The best BPO arrangements work as true partnerships rather than just supplier relationships. Your BPO partner should become an extension of your team, aligned with your goals and invested in your success. 

What are the different types of business process outsourcing? 

BPO comes in several forms, each offering different advantages: 

By function 

• Front office BPO: Handling customer-facing services like phone answering, customer service, and sales support 

• Back office BPO: Managing internal operations not visible to customers, such as HR, accounting, IT support, and admin tasks 

By location 

• Onshore BPO: Working with providers in your own country, offering cultural alignment and easier communication 

• Nearshore BPO: Partnering with companies in neighboring countries with similar time zones 

• Offshore BPO: Working with providers in distant countries, potentially offering cost advantages but requiring more careful management 

By service model 

• Full service outsourcing: Giving complete responsibility for a business function to an external provider 

• Project-based outsourcing: Hiring specialists for specific time-limited projects 

• Co-managed services: Sharing responsibility between your team and external providers 

The right approach depends on your specific business needs and circumstances. Many companies use a mix of these models across different functions. 

What are the benefits of business process outsourcing? 

BPO offers numerous advantages that can transform how your business performs: 

Improve customer experience delivery 

Enjoy better NPS and CSAT scores by combining your current operation with trained and experienced people who you trust to represent your brand. This increased customer satisfaction creates reoccurring revenue opportunities and strengthens loyalty. 

Immediate access to expertise 

Creating specialist capabilities within a company requires a lot of time for recruitment, training, and development. On the other hand, Business Process Outsourcing (BPO) allows you to quickly connect with experienced professionals who are already skilled in their areas of expertise. 

Recruit and retain employees more effectively 

Spend less time and energy finding, hiring, and training reliable staff by eliminating the need to recruit altogether. Instead, invest in dedicated people who understand your objectives and can deliver consistent results. 

Scale up efficiently 

One of BPO’s biggest advantages is the ability to scale resources precisely in line with demand – something that’s nearly impossible with an in-house team. 

Make your customer service function more responsive with permanent access to quality support that allows you to serve customers more efficiently and unlock more opportunities. 

Focus on what you do best 

Outsourcing non-core functions frees your team to concentrate on activities that directly drive business success. Rather than spreading attention across many operational needs, your people can focus their expertise where it delivers the greatest value. 

This focused approach typically leads to improved performance in key business areas, accelerating growth and enhancing your competitive advantage. 

Drive more innovation 

Know your day-to-day customer experience function is optimised with regular review sessions that identify new revenue opportunities and more seamless ways to support customers. Stay ahead of best practices by working with specialists who understand your industry. 

Hit agreed SLAs consistently 

Honour your service level agreements with people who understand your obligations and will dedicate themselves to making sure you consistently hit service benchmarks. This reliability builds trust with your customers and partners. 

Introducing Moneypenny’s Bespoke Customer Teams 

While many BPO providers offer generalised services, Moneypenny takes a distinctly different approach with our Bespoke Customer Teams. We’re not your usual BPO provider, we pride ourselves on being niche, bespoke and capable of offering something truly unique. 

What makes our Bespoke Customer Teams different? 

We hand-pick five, ten, even as many as thirty customer service agents to represent you 24/7, logging into your own systems to answer calls and emails, respond on social media, manage your live chat, process orders, take payments and more. These teams can be fully outsourced or complement your in-house resources, providing end-to-end customer journey management. 

Our 1,000-strong team means we can hand-select individuals from our wider agent population and bring them up to speed with how you like to work in lightning-fast time. This agility and approach means you enjoy a Bespoke Customer Team of people who understand your objectives and complement your brand to the letter. 

Ready to explore how a Bespoke Customer Team could transform your business? Contact Moneypenny today on 0333 202 1005 to discover our award-winning services and begin your journey toward more efficient, professional customer service that helps your business grow.