BPOs (Business Process Outsourcing) is an agreement between 2 companies where one (a client) hires a service provider (in this case, Artech) to take on non-core business functions. These agreements enable companies to focus on their core competencies and enhance their business activities which result in reducing operational costs. These BPO services have become increasingly popular over the last 20 years as companies look for ways to cut expenses and boost efficiencies. BPO services are expected to reach over 400 billion dollars in the next 5 years at a compound annual growth rate of over 8%.
“Do what you do best and outsource the rest!” Peter Drucker, the person Business Weekly called “The Man Who Invented Management”, advised companies to remain focused on their core competencies. Services like customer support, billing questions, sales, and product upgrades, technical support, and other operations can be outsourced to other companies. These BPO providers can offer these services at a lower rate due to economies of scale, specialized processes, infrastructure, and talent availability.
Outsourcing models follow 3 different approaches. Onshore (staying domestic), Offshore (distant country), or Nearshore (a nearby country). Businesses in every industry from fortune 500 companies to start-ups use BPO services to help them stay focused on their primary functions and allowing them to be more flexible, enhance operational efficiency, improve customer service, and utilize innovative approaches to serving customers.
BPO’s are rapidly growing in an array of services like banking, financial services, and insurance (BFSI) as well as IT, telecommunications, and health care industries with BFSI expected to be the fastest-growing segment over the next few years. Additionally, companies are outsourcing back-office requirements stating the benefits of increased productivity and workload management.
In 2019 IT and telecommunications had the largest market share of BPO services in the United States accounting for 30% of the market while the customer services segment made up 31% of global BPO services.
Artech’s Workplace Services division operates as a BPO providing deskside and IT call center support in multiple verticals. In the financial industry, we support Ameriprise Financials 25,000 corporate and field employees. In the higher education sector, we support highly regarded institutions like MIT, Case Western Reserve University, and Tufts. We also support the healthcare market by providing IT service desk services to McKesson. These services are provided either at the client’s location or in one of our call center locations in West Virginia and Arizona.
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