By Giuseppe Ficarra, SVP of Global Business Development at Majorel
Partnering with a BPO Can Make the Difference in Tough Times
With inflation showing no signs of slowing and a recession looming, business leaders are looking to cut costs wherever possible. Many business leaders think belt-tightening means hunkering down with a bare-bones team to ride out the storm. However, seeking outside help can boost performance during times of economic hardship.
Engaging with experts can help business leaders identify areas of opportunity to cut costs — and they can advise against making sacrifices in areas where those cuts might do more harm than good. When looking for experts, there’s no better place to look than companies that specialize in business process outsourcing (BPOs).
Now, we know what you’re thinking: “that’s just another expense.” Think again.
Here’s why working with a BPO may actually save businesses money during difficult financial times:
1. It opens doors to new labor markets.
With widespread inflation comes rising wages, and that’s something many businesses can’t afford in economic downturns. However, getting access to different labor markets can help companies to cut costs. If a business operates in a high-cost city in the U.S., engaging customer service representatives in a market with a lower cost of living — like a rural area — can help reduce costs significantly. The return can be even more significant when working with a company with an international presence. A BPO with operations in countries like the Philippines can help companies cut labor costs by up to 66% in some cases.
2. It allows for more flexibility.
So, let’s say a business has a customer service team that’s meeting its needs. What if those needs change? How quickly could that business grow its team to meet spiking demand? With a BPO, spiking demand is no longer a problem. A BPO like Majorel can allocate more personnel to teams, train them, and oversee their progress, so the business knows customers are getting the best possible service. If demand drops, well, it’s up to the BPO to figure out what to do with the extra employees. Similarly, BPOs are well-equipped to pivot should the need arise. If a business feels its strategy is falling short, a BPO may be able to suggest alternative methods that may yield better results and execute the new plan. These companies are well-versed in omnichannel support and can implement new strategies for clients with ease.
3. It removes risk.
In times of increased economic pressure, removing risk from business can help leaders find more peace of mind. Setting up a call center is a significant expense, as is hiring and managing teams of service employees. Any large expense comes with the risk that the investment might not play out as planned. Partnering with a BPO can help businesses provide top-quality service without assuming as much risk. When leaders contract a BPO like Majorel, that company is responsible for office maintenance, staffing, and employee relations. That allows business leaders to stop worrying and get back to what matters: running their company.
4. It improves efficiency.
BPOs are the experts. When it comes to customer service (or any other service a BPO provides), their whole business model hinges on being the best of the best. As such, they invest in the newest technology, develop tried-and-true strategies for success, and have vast networks of skilled and trained representatives ready to hit the ground running for any client. They are experienced in reducing contacts, deflecting contacts, and shortening call times. Many businesses that contract BPOs for customer service find they can reduce their teams’ headcounts by up to 20%.
BPO helps to meet business’ service needs
While adding something new into the budget may be counterintuitive in times like these, business leaders must take a step back and consider the big picture. Sometimes, cutting costs isn’t just about slashing line items. When companies decide to partner with a BPO, they will yield a significant return on their investments. Access to new markets, increased flexibility, reduced risk, and boosted efficiency all make companies more agile — and in today’s market, agility is the key to ongoing success. Working with a trusted partner, like Majorel, can help ensure that a business’ service needs are met no matter what tomorrow brings.