Why are BPO & BKO key areas of focus for businesses?
Most back-office infrastructures of businesses were built for a previous era – pre globalization, pre-Internet, and pre-M&A. They must change quickly to meet the need for economies of scale and higher competition. For the businesses, the benefit of BPO is access to best practices, which in turn enables improved efficiency and substantial cost savings.
BPO makes sense in a fast-moving world where management attention needs to be on critical operational processes and where management talent is scarce. Doing fewer things well and delegating what’s non-core externally is strategically crucial. Back-offices, while important, are largely non-core.
Businesses are ready for BPO & BKO. They understand traditional outsourcing and are more comfortable embarking on more complex outsourcing engagements.