Business process outsourcing is typically categorized into back office outsourcing and front office outsourcing. Back office outsourcing includes internal business functions such as human resources, finance and accounting. It provides organizations with the services to help manage tasks like data entry,data management, surveys, payment processing, quality assurance and accounting support.
Front office outsourcing however, deals with customer related interactions such as telemarketing, customer service centres, help desks and inbound or outbound sales.
In addition, other outsourcing segments within the global industry can include business services, energy, technology, healthcare and pharmaceuticals, retail, travel and transport, and telecom and media.
As mentioned above outsourcing is the contracting of non-primary business activities and functions to a third-party provider. The outsourcing is provided by a company in the same country that your own company is based.
Offshore outsourcing is the practice of hiring an external organization to perform business functions in a country other than the one where the products or services are actually developed or manufactured.
This is the primary reason why companies choose to use business process outsourcing. When executed properly it leaves a defining impact on the company’s revenue recognition.
Companies choose to outsource or offshore so that they can concentrate on their core business processes while delegating time consuming and non revenue generating processes to external agencies.
Outsourcing and offshoring enables companies to leverage a global knowledge base, having access to world class capabilities.
This is another of the primary benefits when companies offshore or outsource since, freeing internal resources enable them to be put into effective use elsewhere in the business.
Many entrepreneurs outsource to gain access to resources not available internally or after facing issues with internal resources.
Outsourcing and specifically offshoring help companies mitigate risks; as external companies handle the functions that are difficult to control and manage while still realizing their benefits.
Some companies also outsource to help them expand and gain access to new market areas, by taking the point of production or service delivery closer to their end users.
If you need support with business process outsourcing in Saudi Arabia, then contact our expert team on +966 11 411 1127 or [email protected].