Growth Trends of Outsourcing Business Process in Australia
Outsourcing is an increasingly popular business model in Australia. According to a recent market research report by IbisWorld, it’s been growing by about 1.2% per year from 2013 to 2018, with a projected revenue of 32 billion dollars this year.
Australian companies have been turning to business process outsourcing (BPO) companies to handle such functions as call centre operations, IT, debt collection, human resources, and finance. Recently less-technical tasks, such as article writing and translation, have been outsourced as well.
Why outsource?
Outsourcing not only saves on overhead, it allows you to choose from the best talent the world has to offer. Your business can be more efficient and doesn’t have to sacrifice quality to do it. You can even increase quality by outsourcing, since you have so many choices on who to hire.
1. Greater flexibility
BPO allows you to quickly and easily adjust your workforce to the current size of your company – invaluable when scaling. You can outsource vital backroom tasks such as accounting and data entry, in order to concentrate on your core business.
2. Low barrier to entry
It doesn’t take much to get started with outsourcing. The couple who own Bondi Chai, a company selling powdered tea drink mixes, managed to build an entire company with sales of 2 million dollars per year as of 2014 by outsourcing production, warehousing and distribution. The owners own the recipe and the brand, but everything else is handled by contractors. They come from a marketing background, so they did what they do best and let others take care of the rest of it.
3. Take advantage of high tech without having to purchase
With outsourcing your business can have the use of expensive programs without having to actually buy them. For instance, you can hire an accounting company to do your taxes and take advantage of their accounting software, or a professional graphic designer who uses top-notch design and rendering programs.
If you use BPO to take care of your customer service you don’t have to set up the IT infrastructure needed to handle customer interactions. It’s not just about taking telephone calls anymore. At a minimum, today’s customers expect replies via email, live chat, and social media. Outsourcing the whole headache allows you to concentrate on your core competencies (like the Bondi Chai owners), while still maintaining high standards of customer care.
4. Get closer to clients and markets
It’s not just labour that’s spread out all over the world – so it the market. Why not take your business international? Having offshore operations in a certain country gets you closer to that country’s market. You have access to new business opportunities; you’re already closer to potential end users of your products and services.
Outsourcing is a fantastic resource for small and medium-size businesses. The internet age allows entry into areas that were once reserved only for large well-funded corporations. With BPO you can tailor your workforce to where your are at the moment, allowing you to easily scale and adapt to changes.
Where do you think outsourcing in Australia is headed? If you have any comment or questions, please don’t hesitate to get in touch.
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