02 Nov Business Process Outsourcing Australia: Why it’s Surging in Popularity
Australia is a big country with a sparse population, meaning that talent shortages are practically inevitable. It’s therefore little wonder that business process outsourcing Australia (BPO) is incredibly popular across Australia… But what is BPO, and how can it help your business succeed?
Business Process Outsourcing Australia Explained
Business process outsourcing Australia involves contracting a third party to conduct essential tasks and duties. These third parties are usually, but not always, located in an offshore destination. As such, the tasks and duties that are outsourced need to be completable off-site. Examples of common outsourced business processes include IT-related tasks, human resources duties, and finance. Remote workers can, for instance, take care of payroll orchestration, recruit new employees, manage employee schedules, perform bookkeeping duties, and work on technical jobs like writing code. Customer service is another area that is frequently outsourced (usually offshore). Offshore customer service reps typically provide reliable, professional 24-hour customer service at a fraction of the cost of creating an onsite customer service department.
Most businesses can benefit from outsourcing in one way or another (e.g., practically every small business owner needs a virtual assistant). Within Australia, however, the IT industry is most profoundly driving the growth of outsourcing. With the nearby Philippines providing a wealth of technical talent in an accessible timezone and Sri Lanka offering peerless customer service agencies, Australian IT businesses are well-positioned to enjoy the best remote workers have to offer. This sector is still growing, too: The BPO industry is forecast to hit $31.4 billion in revenue by the end of 2017 and grow by 2.6% annually until at least 2022. (IbisWorld)
How to Outsource Effectively
Convenient and practical though it is, outsourcing is not without its potential drawbacks. Disreputable providers can, for example, breach your data security. If you’re operating offshore, language and cultural barriers can lead to poor communication and workflow issues. Neither of these possible pitfalls should put you off outsourcing, of course. When it’s done correctly, outsourcing provides an invaluable opportunity to reduce costs and increase productivity, thereby making you more competitive. In short, most small businesses can’t afford not to outsource.
For a risk-free outsourcing experience, you will need to: a) Choose your offshore destination wisely, and b) Do your due diligence. Certain nations—like China and India, for example—are known hot-spots for data theft and have relatively low rates of English language proficiency. Sri Lanka and the Philippines, on the other hand, have more strictly regulated outsourcing sectors and nearly everyone speaks English.
Finally, when selecting an offshore provider, be aware that working with an agency is generally a much safer bet than taking a gamble on a freelancer. A good agency will vet their employees (so that you don’t have to) and assist you with drafting and signing a legally binding contract that protects your sensitive data. Shop around until you find an agency in your preferred location that has excellent reviews and a collection of verifiable references. Once you’ve found such a firm, you should be ready to reap the many rewards outsourcing has to offer.