The methodology is still confused with the conventional outsourcing, when a company hires another to provide basic services such as cleaning, maintenance, etc.. However, in outsourcing, the sectors that directly support the end activities are contemplated. To better understand the difference between BPO and outsourcing, in addition to the advantages and impacts of outsourcing people management.
What is the difference between Business Process Outsourcing and Outsourcing?
BPO is also translated as outsourcing. In the dictionary we have the following definitions: “hiring of third parties by a company; transfer of a certain function from one company to another”.
The concepts presented can be used both for BPO and for a conventional strategy. The big difference between the two methodologies is in the scope of activities.
Outsourcing comprises more routine activities of lower business value. In addition to not being linked to central areas of the business, these functions do not require so much technical knowledge, only specific training with little depth.
Among them we can mention:
In turn, outsourcing is more strategic, requires greater professionalism and technical preparation of the partner company.
Activities that influence the operation of the business, such as:
- information systems;
- financial control;
- people management;
- sales force.
Outsourcing people management is a great example. An essential activity for the stability of the business, which requires a preparation and infrastructure that are not found in a conventional outsourcing.
What are the advantages of outsourcing people management?
Now that you have understood the main characteristics of BPO, it is time to detail the advantages and importance of outsourcing people management. Follow it!
People management includes some of the most complex activities of a company, such as recruitment, hiring and humanization. In addition to requiring specific knowledge, these functions require investments to be performed.
This requires that the company uses financial capital uninterruptedly, especially when something unforeseen happens to the employees.
By opting for outsourcing people management, the entrepreneur transfers the responsibility to a partner, who needs financial and technical power to fulfill the functions. The result, logically, is a saving of resources and time for the contracting brand.
Focus on growth
Throughout the text we reinforce the idea that outsourcing is not limited to basic activities, as happens in conventional outsourcing. In this case, even with the participation of others, the company needs to worry about hiring, financial issues, accounting, etc.
Of course, the monitoring of evaluations and metrics still needs to be in place, but with the participation of an expert, the peace of mind in focusing on other areas is much greater.
Guarantee of safety in the services provided
As explained, an outsourcing people management is responsible for recruiting, selecting and training the professionals who will perform services for the main company. This type of methodology brings greater peace of mind regarding the work to be developed.
When your organization chooses the strategy, it will only request people for vacant positions, that is, for functions that really need employees. The action of outsourcing is to recruit the best and most prepared in the market and relocate them according to your needs.
Another clear benefit of outsourcing is the optimization of processes. Unlike the simple model, here, the idea of improvement is intrinsic. Companies that work in this field understand that they must always offer differentiated services and professionals.
With this concept being part of the DNA or organizational culture of the niche, the contracting company tends to rely on process improvement and greater efficiency in the daily routine. And the greater the know-how of the service provider, the greater the quality employed by the contracting company.
This is also reflected in the company’s effective professionals, because there is a constant exchange of knowledge, which increases the chances of general development and better production flow.
Greater probability of taking advantage of opportunities
In such a competitive market, many opportunities arise without companies being prepared to take advantage of them. Some opportunities are wasted due to the burst capital, in other cases, the organization does not have the appropriate professionals.
Outsourcing can also transform your company in this sense. As explained, the strategy tends to reflect on the reduction of expenses in the long term, making the financial cash more healthy.
Moreover, when implementing BPO, the company will always have qualified and differentiated professionals at its service, ensuring the use of every interesting opportunity for the business.
What are the impacts of the strategy on the company’s results?
In the past, people management was limited to hiring and dismissing employees. This happened because there was an idea that professionals were necessary parts for the means of production and nothing else. Of course they had some exceptions, but, in general, that was the vision.
However, with more information and preparation, managers began to understand the importance of employee participation. Today, it is understood that a company is strong when it has engaged, updated and motivated professionals.
But, as explained, this support and training work is costly, both in financial terms and in terms of time. It is at this point that the outsourcing strategy makes all the difference to the company’s results.
Experts in people management know exactly how a brand should be organized and structured to properly develop its professionals. A partner company relies on investments, adequate tools and technical knowledge to find the best employees for its business.
Getting stuck with concepts from the past is a big risk in today’s market. Methodologies such as outsourcing people management can be the solution for your company to achieve the expected excellence without having to burst the financial resources. It is worth analyzing the main difficulties of your business and compare with the benefits of an outsourcing.