Process Improvement

In many cases an individual company is limited in its access to and knowledge of alternate ways to perform and optimize business processes because its only base of experience is its own. However, business process outsourcing firms that specialize in particular processes, like eFunds for financial services, have deep experience performing the business process for multiple companies. This enables BPO firms to leverage their learning and employ best practices to eliminate, simplify, and rationalize steps and costs in the business process to the benefit of their clients. For example, through business process outsourcing, a telecommunications company shortened the cycle times on its e-mail customer responses from several days to 24 hours, and lowered rework costs on application handling due to error-free processing.

Additionally, BPO firms are usually motivated to improve the process to increase their efficiencies to reduce costs because they are paid for completed work at contracted service levels.