What do you know about BPO?
BPO (Business Process Outsourcing) is a business practice that describes the use of related services provided by external professional suppliers rather than self-organizing the supply (in-house). So that companies can lower their costs and increase their competitiveness and focus on promoting. their strengths. The concept of BPO has been mentioned in Vietnam since the end of 2005, but according to a survey carried out by IDC, in 2007, only 17% of Vietnamese organizations and businesses reported using BPO services. BPO services have been provided by many industries, including security, financial accounting, law and IT projects.
Strengths of BPO for businesses
Business process outsourcing has become an important part of almost all businesses today thanks to the use of traditional services based on flexible terms, with the main idea: ensure the flexibility but retain its dynamism, lower the cost and capable of developing. The advantages, as well as the role of BPO, can include some highlights such as:
a. Cost optimization: The cost benefit is arguably the most visible strength of BPO. The outsourcing model reduces costs by eliminating the need to hire or train new employees and support staff (HR, administration,...). When an enterprise establishes a new process, the cost of machinery and equipment, human resource training, risk management, etc. would be very high. Instead, they can use the business processes and experienced staff provided by the BPO company to optimize costs more.
b. Focusing on the company core values: Managing multiple business processes at the same time makes the management resources of enterprises scattered and easily lead to problems. BPO makes it possible for them to cut excess time in management processes. Thus, helping businesses focus on the main target of their main business.
c. Faster access to innovations: BPO companies will provide flexible measures according to the management processes introduced by the business. Therefore, it is possible to homogenize and save invested capital for businesses.
d. Minimizing risk: BPO service providers will develop strategies and manage risks to companies. They often do an excellent job of making decisions that dodge risks in their own area of responsibility.
3. How Business Process Outsourcing Has Evolved Over Time
When we look at the 2019 A.T. Kearney’s Global Services Location Index (GSLI), surely no one would have thought that from a country with only 17% of organizations, businesses using BPO in 2007, had surpassed countless many industrial countries to be able to rank at top 5 outsourcing locations in the world.
Even when production was forced to stop due to social quarantine, BPO continued to grow with no obstacles. According to the report "The BPO and Shared Services Location Index 2021", Vietnam still ranks as one of the ten most attractive offshoring destinations in the world. As can be seen, BPO is still developing in Vietnam even in the worst conditions.
This is because, unlike the other business models, BPO allows the employees to use technology and work remotely during the COVID pandemic. As a result, employees aren’t required to go directly to the company but can still complete the assigned work and ensure the project's progress. Furthermore, businesses are now focusing on the output product's quality instead of the process of creating that product. BPO enables businesses to gain access to a large pool of human resources at low cost while still ensuring project participants have the necessary qualifications.
4. The promise of the Outsourcing industry to Vietnam
In the context of globalization - modernization today, Vietnam is considered as a country having ideal conditions for the Outsourcing industry to develop, such as having a favorable geographical location with young labor forces,... Outsourcing is currently a way to make good use of the opportunities and advantages that we have to make Vietnam's economy more and more developed.
In 2010, Vietnam was honored as one of the top 30 countries in terms of foreign services. Since then, there has been steady improvement along with the rapid growth of the existing industry, a wave of new graduates, foreign investment, and start-ups.
According to the report “The BPO and Shared Service Location Index 2016” by Cushman and Wakefield, Vietnam led in productivity with lower rental and construction costs. Labor costs in Vietnam are about 50% lower than in India, China, or Southeast Asian countries and the lower malnutrition rate is also an advantage compared to India. Companies such as Intel, IBM, Samsung Display, Nokia, and Microsoft continue to invest in Vietnam, showing the industry's continued growth momentum. Not only that, Japanese information technology companies often use ITO and BPO services in Vietnam. Based on this, we understand that this is not only a promise but also a challenge for the Vietnamese economy when it has to meet professional human resources who learned foreign languages as well as having a good mindset. Thereby bringing advanced human resources closer to fields such as software development, knowledge economy, high technology, etc.
5. SHAREWORK's vision with Outsourcing.
SHAREWORK has become one of the leading enterprises in the field of providing BPO services. In recent years, SHAREWORK has focused on developing in many international markets such as European countries, America and continues to grow on a global scale.
SHAREWORK is currently providing BPO services in areas such as BPO, Translation, Digital Marketing, Engineering, Manufacturing, and Digital Transformation. SHAREWORK wishes to accompany Vietnam and the whole world in the step-by-step transition to the model of Society 5.0 - a society that honors human values and incorporates digital technology into the comprehensive, sustainable socioeconomic system.
#SHAREWORK #VIECLAMSHAREWORK #BPO #BusinessProcessOutsourcing #Outsource #Outsourcing #VietnameseBusinesses #ITServices #SoftwareDevelopment #TechnologyCorporation