The Benefits of Business Process Outsourcing

The Benefits of Business Process Outsourcing

There’s a popular expression in the business world that many successful entrepreneurs use to guide their decisions: “Work smarter, not harder.” You’ve probably heard it applied to many things, from schoolwork to housework to various office workflows.

The idea, of course, isn’t to avoid hard work. It’s to focus your energy and attention on tasks with the highest return on investment. It’s about optimizing processes to get more payoff for less effort—an obvious benefit to your stress level and your bottom line.

Here’s another one for you: “Keep it simple, stupid.”

Too many businesses bypass the simple solution to create infrastructures and processes that are complicated, inefficient, and inaccurate. This is especially true for companies that try to handle everything in-house—from human resources to IT to accounting to customer service. Over time, there are more people in more departments and many more moving pieces to manage. There’s also more time, energy, and resources invested in systems that may or may not be the most effective.

This culmination of ‘more, more, more’ is exactly why many businesses in all industries and sizes outsource specific tasks. Not only does it simplify in-house workflows, but outsourcing also enhances an organization’s flexibility, efficiency, and competitive advantage.

The Trend Toward BPO

Initially, the only businesses that used business process outsourcing were manufacturers who would outsource segments of their supply chain to increase efficiency and product quality. Coca-Cola, for instance, has long produced its syrups in-house while outsourcing the bottling and distribution. They focus on their core competency of making great soda and work with trusted outsourcing partners to handle the rest.

As digital technology has advanced in the last few decades, outsourcing has significantly altered how most businesses function. Even before the pandemic, the demand for BPOs was on the rise but has increased dramatically in the last few years due to remote work solutions, process automation, and artificial intelligence. In fact, the BPO industry is expected to grow exponentially over the next ten years as more companies realize the significant return on their investment that such a partnership offers.

The types of BPOs have also expanded in the last several years, but they can generally be placed in one of two categories: front-office and back-office. Front-office outsourcing refers to any activities that require direct contact with clients or customers—customer service, marketing, technical support, public relations, and appointment scheduling. In contrast, back-office outsourcing relates to activities that are more “behind-the-scenes,” focused on production and other business procedures—information technology, payroll and accounting, human resources, web development, etc.

The list goes on. The point is that business process outsourcing is on the rise as more businesses opt to solve complex business problems the smart way.

Advantages of Outsourcing

Despite the apparent advantages, some people hesitate to outsource because they fear giving up control over various activities. They also fear a decline in communication, synergy, and overall quality. However, the reality is that outsourcing typically improves performance in these areas. In fact, the benefits of working with a BPO spread across the entire organization:


Outsourcing allows you to scale up or down as needed. Instead of having a group of permanent employees on site to respond to customer requests or provide administrative support, a BPO provides staffing that can step in when demand is high and fade out during the slower seasons. That means you only pay for the staffing you need and are positioned to quickly and easily adjust to fluctuating market demands.

It also provides higher levels of control as you choose the outsource partner that best fits your needs and is willing to work the hardest to earn your business.


Working with a BPO saves you the expense of recruiting, onboarding, training, and managing a team of employees. You don’t have to worry about loss of productivity due to employee turnover. You don’t have to provide health insurance, sick pay, vacation pay, or retirement benefits. And you don’t have to invest in the office space, equipment, or technology required for specific tasks. Combined, these benefits keep costs to a minimum, reducing overhead expenses by as much as 40%.


Outsource partners have expertise in specific areas and are more likely to be familiar with the latest innovations and industry trends that will help your business grow. For example, RDI has a speech analytics team that uses cutting-edge software to monitor customer service calls and flag the most pressing customer concerns. That data is then used as a training mechanism to improve call management, first call resolution, and overall customer satisfaction.

While your outsource partners manage key business activities, you can focus on the core business competencies that make your company unique, ensuring customers receive the best products and services.


An experienced BPO can help optimize workflows for top efficiency. Companies save money on unnecessary labor and overhead expenses and benefit from the expertise of an outsource partner who knows how to set up efficient key workflows that prioritize quality and customer service. When things are done right the first time, customers are happier, and less time is devoted to correcting mistakes.


As you can see, a BPO reduces internal workloads and stress. Companies with too many departments trying to accomplish too many tasks are prone to miscommunications and human errors that could easily be prevented by a BPO specializing in those areas. By spreading out the workload to more people, internal employees experience less stress and more focus on their core tasks.


BPOs remain competitive by staying on the cutting edge of innovative technologies that can significantly impact quality, efficiency, and accuracy. This means you don’t have to stay apprised of the latest trends and technologies and the best ways to implement them. That’s what your BPO is for.


The bottom line is that a BPO makes it easier to run a successful business, which is more important than ever as many companies vie for economic stability and a clear value proposition that will resonate with consumers. “Work smarter, not harder” isn’t just a pithy expression; it’s the rule of survival that has led many businesses to seek an experienced BPO.

Work With a Trusted BPO

Want to know more about what RDI can do for you? We have 45 years of experience as a trusted BPO that provides quality customer service and business intelligence to help our partners meet their business goals.