Total expenses avoided is definitely added to net profits. What is the leading factor that would comprise of a company’s total expenses versus the net profit even for large-scale companies? It is the salary of the employees.
How are these large-scale companies avoid the huge sum of wages being deducted to their profits for them to gain even more? They send all the major work-load to highly skilled and qualified people from other developing countries to cut their expenses. This process is what we call “Business Process Outsourcing”.
One might be misled to think that “Call Centers” is the BPO itself. I would like to share that it is just one major category of what the Business Processes that are being outsourced in other countries. This could also be an In-House which means that the company itself is built in other countries or tie up with an agency specializing in providing world-class service.
A Business Process Outsourcing (BPO) Company is running thru Information Technology enabled services, (ITES). The primary role of an associate is to act as a virtual help-desk processing the tasks related to the “account” they are servicing.
These are the major advantages of Organizations adopting BPO services:
- Enhanced efficiency. Key Performance Indicators (KPI) are set as standards to meet all the requirements of the business.
- Organizational Growth. The Board of Directors can invest more time to expand their business rather than maintaining all operational activities.
Business Processes that are mostly being outsourced:
- Customer Service (Billing, Activations, Adjustments, Account-related inquiries, deliveries etc.)
- Technical Support (installation, troubleshooting, device processing, etc)
- Sales (Both product and services)
- Retail Banking (Online shopping)
- Finance (Card-related concerns)
- Voice Relay / Captioning
- Medical Transcription
- Data Entry / Encoding
- Human Resource
- Health-Care
- Payroll & Book-keeping
- Technical Writing
- Language Tutoring / Mentoring
- Airline Reservations
- Appointment Setting
- Marketing and promotions
- Logistics
- Web Development / Content creation / Hosting
Let’s take a look at the savings that a Business Owner can save:
Minimum Wage in the United States:
Screen-shot source is from Google
It is shown here that the minimum wage in the United States is $7.25 per hour. In most highly developed States where the wages are premium than other teritorries it can also go as high as $11-$12 with office-related jobs. Since the services being offered by the BPO industries are for white-collar jobs then let's stick to the $11 per hour.
Disclaimer: I don't intend not to acknowledge the highly skilled workers since I am just providing data for information purposes only.
The actual and average wage we are getting is $2.00 per hour for career entry employees. It could go as higher than $3.00 based on the tenure being in the industry or even higher. The third party service provider for business owners definitely has a cut from the wages being given to us. Let's say for example the BPO company also have $1.00 per hour cut for each employees they have. Business owners definitely have more than 50% savings from the wages of the employees alone. Do the math for the monthly savings a business owner can gain with this process.
Incentives given to the employees can be from the BPO company or the Business owners themselves.
The 50% savings from the employees' wages are really quite astounding and definitely can be used for expansion or adding other products or services that ensures growth and profitability.
Why am I sharing this topic?
I was out recently and have not been active posting blogs because I was busy with my application to a certain BPO company which caters technical support. The project is a US-Based company manufacturing wireless devices and it involves Business-to-Consumer interaction. I will be providing walk-throughs and troubleshooting guidelines in three ways. I will be assisting customers thru calls, email & chat support. Since the company I will be working with is a Third Party vendor that renders this kind of service to the US-Based Company, I would act as if I am really employed in the USA representing the Wireless Device Manufacturing company. I will make sure that all concerns based on our scope of support is addressed for total customer satisfaction.
Should this topic be beneficial to the readers of this platform?
The awesome authors we do have here in publish0x are mostly developers and crypto-enthusiasts. If somebody here has a business that would require manning for the operations itself, promotions, marketing and answering to inquiries of platform members or customers, then outsourcing a certain process or business function would be really a great option to consider for cost-cutting purposes. It will also provide jobs to other people as well. This kind of information is substantial to be posted here on publish0x.
If you have information like this to share that you think would benefit the platform members then this is a great opportunity for us to share all our ideas which can also get acknowledged even if we don’t delve into crypto-related topics.
If you have anything to share based on the topic I have posted, please do not hesitate to comment it here and we'll start a great discussion out of it.
Thank you so much for the support you have given me would be more than happy to drop by your profile to check on your posts as well.
You may check out the blogs I have shared here regarding cryptocurrencies too.
https://www.publish0x.com/introduction-to-cryptocurrencies
See you on my next blog!
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