Business process outsourcing has become incredibly popular with companies ranging from large ASX-listed companies to start-ups over the last two decades. Australian businesses in every industry can now outsource non-core processes while applying more resources to core business functions.

Businesses have been adopting BPO because business process outsourcing solutions provide an array of opportunities for cost reduction and business growth. It allows for better quality and performance, a diversity of skills, a more global presence and competitive advantage.

The four main types of BPO now are:

KPO

Knowledge process outsourcing is when a company outsources work to a service provider for specific expertise in the process. This may expand past process expertise, into business and domain-based expertise.

LPO

Legal process outsourcing, specific to legal services, includes conducting legal research, drafting legal documents, and even providing legal advice.

RPO

Research process outsourcing entails research and analysis functions. Examples of organizations that would engage in RPO include biotech companies, investment firms, and marketing agencies.

ITES

Information technology-enabled services delivers IT services through leveraging information technology over the internet or data network. IT outsourcing job examples include service desk analyst, IT analyst, production support analyst, and technical support.

Outsourcing providers are expected to use new technological innovations to effectively address market challenges, enhance products/services and manage talent shortages – while helping keep operating costs low.

Here are some trends in the sector to look out for:

1. Process Automation

Process automation, in particular robotics and AI, have begun to impact business. With cost savings, speed and efficiency, these new technologies are making their way into all types of business processes.

Outsourcing companies can access new technologies to help their clients make processes faster and more efficient.

2. Social Media Tools

The customer service industry was previously entirely reliant on websites and telephone response for customer management. Now there are more than 3.4 billion active social media users worldwide with 57% of Australians having at least one social media account.

This provides companies with a wealth of data and feedback which can enhance the ability to analyse trends and innovate. Real-time customer engagement through social media is preferable to call centres for the majority of millennials.

Services provided by outsourcing companies can include social media monitoring, business intelligence and actioning customer response.

3. Cloud Computing

Small to medium businesses may not have the budgets needed for state-of–the-art office space and infrastructure, nor might they have the data centres, hardware, software or personnel required to implement new technology.

The benefits of outsourcing computing infrastructure and management include system standardisation, increased storage, higher data security and simplified administration. Cloud-based processes also have flexibility and scalability.

4. Filling the Skills Gap

Demand for more skilled outsourced staff is increasing. BPO used to be about call centres but is now used for accounting, human resources, web design and marketing. Even more specialised work can include data science, legal outsourcing, cyber security and coding to name a few.

5. Start-ups using BPO

Talent outsourcing is becoming a successful model for start-ups under time and resource constraints. New companies can rely on BPO providers for cost effective labour and new technology.

The BPO sector is expected to continue to grow by 6% per year and businesses at all levels could benefit.

If you’ve been looking at outsourcing, or increasing your outsourcing, give SBA a call and see what we can do for you.

Our Business team can help with accounting, marketing and IT, while SBA Strategic Legal Solutions (

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