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As globalization and digital technology continue to drive today’s competitive environment, businesses, particularly small ones, must reevaluate their processes. Many have turned to the business process outsourcing (BPO) industry for a solution to increase cost savings and enhance core competencies.
Outsourcing extends to various domains, such as human resources (HR), call center services, accounting, marketing, technology, and security. It offers small businesses greater operational flexibility and efficiency, improving their competitiveness.
How can the BPO experience help small businesses? Find out in this article.
Examples of Small Businesses That Utilized BPO for Success
So, what is BPO? It is a practice that involves contracting out specific business functions or tasks to external service providers.
The benefits of BPO for small businesses include access to special skills, standards to ensure quality service, and 70% savings on labor costs. Case studies illustrate how BPO experience proves an effective tactic for smaller enterprises to contend with industry leaders.
In the early 2000s, Groupon delegated its customer service operations to an offshore BPO company in India. This strategic move enabled them to concentrate on their core business activities and rapidly expand to meet the needs of their growing customer base. Consequently, this modest business substantially grew and competed with more prominent contenders.Â
Here are other examples of small businesses that succeeded in their BPO implementation.
Gennev: Leveraging BPO for Scalability in Healthcare Web Platform
Gennev is a Seattle-based telemedicine company that aims to assist women in their journey through menopause. Its mission is to help women manage and understand their health in a personalized way using its telemedicine services and online community.
The Client’s Needs
Gennev needed to shift its attention to developing additional features to elevate its brand. Since most of its webpage traffic comes from mobile devices, it required a responsive design capable of seamlessly integrating existing features with ease of use, all while accommodating rising mobile traffic. Enhancing the overall customer experience hinges on this goal.
Additionally, a key objective for the company was to extend its operations to all 50 states, making scalability a significant factor in its future endeavors.
Expert Solutions
The skilled engineers from the BPO vendor tailored solutions to elevate the full-stack development of Gennev’s web platform. They devised a strategy to retain the existing legacy website while constructing a new one that could more effectively align with Gennev’s objectives.
The BPO provider became an integral partner for Gennev, offering a wealth of expertise in modern front-end interface design, site reliability, scalability, and maintenance.
Given the significance of data security, the team accorded it a top priority. This emphasis stemmed from confidentiality concerns and the need to adhere to industry data standards, including compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and other related regulations.
LivingSocial: Offshore Outsourcing to Boost IT Infrastructure via QA
LivingSocial is an online platform that offers daily deals for discovering and purchasing enjoyable activities in your local area. It is a convenient resource to uncover savings on everyday products and experiences while providing opportunities to explore and relish unique and enjoyable adventures with friends.
The Client’s Needs
LivingSocial was searching for a reliable partner to ensure its platforms’ continued quality, functionality, and advancement.
Expert Solutions
Third-party automation engineers and quality assurance experts upheld the top-notch quality of LivingSocial’s core platforms with each successive release. Collaborating closely with LivingSocial’s in-house quality assurance (QA) team, the BPO provider conducted automated and manual testing procedures.
The QA services played a crucial role in enhancing LivingSocial’s reputation, ensuring its products consistently meet and surpass expectations. The BPO team dedicated its efforts to upholding stringent compliance with requirements, offering valuable insights, and regularly integrating user feedback.
Limeade: Hiring a BPO to Create a Next-gen Integrated HR Platform
Limeade is a software company that enhances the employee experience, focusing on creating excellent work environments. Its employee engagement platform is tailored to various workplace settings, primarily emphasizing well-being and reinforcing organizational culture.
Limeade aims to increase productivity and reduce turnover rates by promoting employee engagement.
The Client’s Needs
Limeade needed assistance in software engineering to advance its Limeade ONE platform. This platform consolidates three HR solutions into a unified and user-friendly system, offering employees a seamless and comprehensive experience. It also required support for integrating machine learning (ML) algorithms as an integral component of its core features.
Expert Solutions
A team of skilled external engineers handled web application development, assisted with existing software, and focused particularly on business intelligence tasks. Their primary focus was migrating the older Limeade Classic software to the new Limeade ONE platform, which included transitioning the app to a microservices architecture.
How the BPO Experience Benefits Small Businesses
Small businesses frequently encounter substantial obstacles in competing with industry giants. Bigger corporations typically possess more extensive resources, established brand visibility, and a larger market presence. These factors pose challenges for small businesses aiming to gain a foothold in the market.
Most small businesses lack the financial means to match the internal support services maintained by larger corporations. The BPO experience is a practical approach for small businesses to bridge this gap. Outsourcing enables small firms to operate at a scale similar to larger companies, giving them access to the same economies of scale, efficiency, and expertise.
Eighty percent of small businesses planned to outsource in 2021. Here are other ways outsourced business processes benefit small enterprises:
Start New Projects Faster
A competent outsourcing company has the necessary resources to commence a project immediately. In contrast, managing the same project internally could involve a lengthy process revolving around recruiting and training the appropriate personnel to offer the required support.
Moreover, if a project necessitates substantial capital investments, such as constructing multiple distribution centers, the initiation process can be notably more challenging when performed in-house.
Turn Knowledge Into Strategy
During the research phase, you must gather data on your competitors’ actions and keep abreast of current industry trends. BPO opportunities are helpful if you lack the means to access the necessary information, especially when formulating innovative strategies.
Outsourcing during the research phase can enable you to expand your operations effectively, as this stage guides the foundational components of product development, transportation, logistics, storage, and other activities.
The Bottom Line
With the right strategic partnerships and approaches, the BPO experience can help small businesses level the playing field and rival industry giants. It also drives innovation, growth, and operational efficiency, ultimately leading to the business’s long-term success.
Unity Communications has been operating for over ten years, providing high-quality solutions for clients across industries. Interested in giving BPO a try? Let’s connect to discuss custom BPO experiences for your business!
