Business processes can be incredibly complex. They can be tedious, requiring attention and effort that seems far removed from the excitement of selling a product or providing a service. Sadly, they are also essential. A business that fails to cover all the necessary administration, customer support, finance, and legal will eventually have to pay a heavy price, and that might even include failure.
However, these processes form a significant part of the business’s overhead, sometimes without contributing directly to its goals. A consequence of this is that BPO in Australia has seen a resurgence of interest. First popular in the latter part of the twentieth century, outsourcing has fallen in and out of fashion. Ultimately, though, businesses face the competing pressures of having to make a profit while also satisfying customer demands for high-quality service and low prices. Outsourcing has been a common solution to that challenge.
Like much of the world, the Australian economy has been shaky for much of this century, with growth tempered by feelings of uncertainty among businesses and consumers. BPO providers have not been immune to this, and for a while, they saw some pressure as their clients opted for the illusory sense of security by taking their processes in-house. However, as time has passed, confidence in the sector has revived.
BPOs themselves have benefited, able to call on a skilled workforce at a time when other opportunities might be in short supply. They have also established operations in areas of the country that might otherwise lack major employers and frequently have lower premises costs.
These add to the combination of factors that make BPOs in Australia around 10 to 15% less costly than the equivalent in-house provision. Staffing and premises are clearly a big factor. A Sydney-based business simply could not operate with a budget that could fully staff a large operation in the north, for example. However, a range of other factors also contribute to the saving.
Almost every operational cost will be cheaper for a dedicated provider. While outsourcing companies in Australia provide their speciality for the client, they also benefit from this themselves. Ongoing costs, like HR, finance, and administration, are reduced because those functions are also specialised.
They can also benefit from the scale at which they operate. A typical BPO company will have anywhere between 20 and 50 clients. This will mean the costs—not just the physical infrastructure but also things like supervisory and management oversight—are shared. Overheads that might need building into an in-house team, such as cover, training, and succession planning, can be managed by fully utilising the BPO provider’s available resources.
Ultimately, though, the savings should be a secondary concern for most businesses looking at outsourcing. There is little point in outsourcing for a saving at the price of dissatisfied customers and lost reputation. While the bottom line will look better initially, the effects will soon be outweighed by lost revenue. The aim of outsourcing, therefore, is ensuring that it adds to the long-term value of the company by providing enhanced customer service.
Ralf Ellspermann, CEO of PITON-Global, one of the leading mid-sized call centres in the Philippines, says, “Often clients come to us after they had a dire experience with a third-party outsourcing provider, onshore or offshore. The common factor, sadly, is that the provider did not pay enough attention to customer satisfaction.” Whether in Australia or offshore, BPO can offer savings—up to 50% for offshore options—but it’s essential to make sure that it does so while enhancing the Customer Experience (CX). “Both front- and back-office processes can, and in most cases will, have a significant impact on CX. In today’s hyper-competitive marketplace, the focus must be on the customer. This is imperative for the long-term success of any business” he adds.
