Regardless of the business domain you operate in, disruptions can be quite challenging to handle. Take COVID-19, for example. Almost every business (apart from the medical domain) across the world faced the consequences because the pandemic disrupted the entire supply chain. and a vast number of businesses shut down completely.
However, by leveraging the power of BPOs, you can handle disruptions pretty easily without letting your business suffer. Want to know how BPOs can help? Read along.
In this blog, we’ll briefly discuss how disruptions or unexpected events impact businesses and how, using BPOs, you can effectively handle the same.
How Do Disruptions Challenge Businesses?
Disruptions are unexpected changes or events that disrupt the regular flow of processes, leading to poor productivity, performance, and profits.
COVID-19 is an overly common example that’s worth mentioning. Because of the pandemic, lockdowns were imposed, which impacted the supply chain and led to a loss of productivity.
However, that’s now the only way disruptions occur. A sudden change in technology can also lead to monetary and productive losses. Take AI, for example. Not only is AI replacing humans, but other technologies that seemed futuristic a few months ago are now being replaced, forcing companies that have invested in such technologies to upgrade, posing financial and logistical challenges.
Also, sometimes, when the demand for a product drops, companies are unable to scale down. And this leads to a substantial reduction in revenue and profits. As a result, companies are forced to lay off huge numbers of employees just to cut costs and stay afloat.
How can BPOs Help Businesses Survive and Thrive?
Here’s how business process outsourcing services providers help your business deal with the crisis and contribute towards its expansion and growth:
BPO Offers Continuity
Business continuity is largely affected during disruptions like natural disasters (hurricanes, earthquakes, etc.) and unexpected events such as pandemics. This can bring all the processes and work to a complete stop, negatively impacting your business.
However, BPOs specializing in data entry, IT or call center services can offer continuity to your business during a crisis. By outsourcing your services, you can ensure the work never stops and the money keeps rolling in.
Massive Cost Reduction
Another common challenge for businesses is a disrupted supply chain and, thus, disrupted production, which can negatively impact revenue. While you can reduce production in these situations, everyday business processes like customer care and processing accounts payable still need to function. In-house staff can be quite expensive to manage during such disruptions.
However, you can effectively handle this issue with BPOs. You can simply outsource the redundant non-core processes to BPOs and keep things running without having to break the bank.
Scale Up and Down As you Need
It’s common for businesses to experience a sudden drop in demand. However, this leads to less production, which further translates to more expenses as companies will have to pay their employees the same for doing much less work. And this can lead to an impacted business bottom line.
However, again, BPOs are here to save the day. Usually, BPOs operate on a pay-as-you-go model, wherein you only pay for the services you use or the work you get done. In case of a drop in demand, you can easily inform the BPO and scale down the workforce, thus saving money.
In addition, if the demand rises again, you can scale up and ask for more workers to join the workforce, which is quite complex when hiring regular employees.
Conclusion The majority of businesses ignore the advantages BPOs offer and conduct business as usual. However, such businesses often take a massive hit whenever there’s a disruption in the industry. So, don’t be one of those businesses and leverage the power of BPOs to survive and thrive in disruptions.