Do you tend to think bigger is better — or to be avoided? Your tendency may be more of a subconscious mindset than an intentional arbiter. Think about your preferred places of business. Lifetime Fitness or niche gym? Costco or local market? State university or small college?
People often rate businesses, churches, schools, and medical facilities based on tangible metrics like square footage, units produced, stock value, geographic reach, attendance, and social media followers. The greater the number, the more highly one thinks of that establishment. Success is measurable, right?
Sure. Yet others are put off by big organizations and see greater value in the less tangible attributes of smaller organizations. Numbers can be misleading, or at least the wrong ones can be.
You might agree that bigger can be better in some cases, but not all. The same principle applies to assessing business process outsourcing (BPO) companies. Let’s look at some advantages and disadvantages of larger and smaller BPOs to help you determine the best approach for your business.
Benefits of Business Process Outsourcing
Utilizing a BPO partner allows you to tap into the expertise of a third party to manage a process for you. They provide improved performance at a lower cost while you focus on your core business operations. For many companies, outsourcing business processes becomes a catalyst for new heights of success. (More specifically, we have also discussed the advantages of outsourcing a contact center and IT services.)
The vast selection of BPO companies is great for finding a perfect match for your business, but sifting through it can be overwhelming. Understanding how size affects your experience with a BPO helps narrow down the options.
Working with Large BPOs
Of course, every BPO will be a little different. However, there are some general expectations and experiences when working with a larger company. Here are some typical advantages and disadvantages.
Advantages
- Extensive resources
- Global reach
- A wide array of services
- Experience handling complex processes
- Economies of scale that might translate into lower costs
Disadvantages
- Less flexibility and customization
- Focus distributed across more clients
- Slower decision-making and turnaround time
If you have a complex process or a large company, your needs might require what a larger BPO can offer.
Working with Small or Mid-sized BPOs
Again, every BPO company will be a little different. However, there are some general expectations and experiences when working with a smaller one. Here are some typical advantages and disadvantages.
Advantages
- Specialized niche services
- Flexibility and personalized solutions
- Better service and attention to detail
- Closer relationships and collaboration
- Active participation from senior management
- Quicker decision-making
Disadvantages
- Fewer resources for complex processes
- Limited geographic reach
- Less experience
If you have a small company with unique needs, a smaller BPO provider might accommodate that better.
Other Factors That Matter, Too
Of course, knowing the size of a company doesn’t provide the whole picture. Several other factors are essential considerations when assessing business process outsourcing companies. Your assessment should include:
- Credibility
- Capacity
- Competence
- Culture
- Pricing model
- Scalability
- Recruitment process
Making the Right Match
Outsourcing a business process is a big decision, and selecting the outsourcing provider is the next big decision. We understand the gravity and can help with both. Through our thoughtful, relational approach to advisory services coupled with our network of 75+ contracted BPO partners worldwide, we can ensure that you choose the best fit for your goals, budget, and culture.
Contact us today about finding the right-sized customer experience BPO for your business’s needs.
