BPO in Mexico: what it is, what are its advantages,
and when to implement it as a strategic tool
What is meant by business process outsourcing or BPO in Mexico?
Traditionally, companies have been in charge of carrying out the entirety of their operations internally. This has been the case even though some of the functions they perform are outside
of the realm of their primary business activity. In other words, these are non-core functions.
However, in recent years companies have changed their strategies. As a result, the practice of outsourcing part of these secondary activities that are not directly linked to the company’s
primary function has become commonplace. For example, the contracting out of functions such as customer care or accounts payable has become a means by which companies can reduce
their costs. As a result, many companies look to BPO in Mexico to fulfill their needs in these areas.
Furthermore, if we focus more on recent years in which there have been significant technological advances in the business sector, the contracting out of business services has also spread to activities that have played a more direct role in determining a business’s cost competitiveness. These are accounting or advanced administrative tasks with a high technological component in many cases.
This outsourcing of services is known in the business world by the term Business Process Outsourcing (BPO). BPO in Mexico is presented as a viable alternative when performing some functions more efficiently, allowing, in turn, to reduce costs. In fact, information and communication technologies (ICT) allow part of the activity of companies to be carried out in different places, such as nearshore Mexico, or for other specialized companies to carry it out at a lower cost.
Main advantages of BPO in Mexico
The main objective pursued by a company that decides to outsource specific tasks or services is to reduce costs and increase the efficiency of such operations. Digital transformation directly
impacts companies opting for outsourcing as a practical and effective solution, which is why it is growing increasingly. Here are some of the main benefits of BPO in Mexico:
- Reduction of costs in equipment and hiring of personnel.
- More margin to focus on the main activity of the company.
- Use of more advanced technologies and more effective information services.
- Quick and efficient response to possible changes in the company’s sector.
- Greater specialization, since by focusing more on the essential core functions, the company will be able to improve and optimize its service and be more competitive.
- BPO in Mexico allows highly qualified personnel to be in charge of covering specific tasks. In addition, these skilled external workers can advise the company’s employees, thus increasing efficiency, productivity, and quality of service.
- Greater flexibility of the company, which entails a decrease in fixed costs.
When are the appropriate functions to contract out to a BPO service provider in Mexico?
As can be noted, outsourcing some processes goes beyond the realm of reducing costs since it is an alternative that can mean a considerable improvement in competitiveness. In this sense, the fact that the external service hired for BPO in Mexico is involved in the company’s objectives is essential for outsourcing.
Emerging and newer small and medium-sized enterprises (SMEs) often resort to outsourcing activities that require significant human and material resources, such as software maintenance, sales, logistics, or human resources management. However, in recent years, large companies are increasingly betting on outsourcing to focus on their key functions. This is precisely due to the rapid technological advances and the proliferation of new start-ups, which increases competition.
Therefore, one of the main reasons for outsourcing services is to adapt to the new business and economic reality, which is greatly affected by new technologies. Faced with these technological changes in multiple business sectors, contracting specialized services through a service for BPO in Mexico is more profitable than altering the company’s structure or increasing its staff and technical equipment at its home office.
Likewise, in the face of market fluctuations, a possible economic slowdown, and uncertainty, employing a service to provide BPO in Mexico is a measure that can respond to the unique needs that a business may have during specific periods. Depending on its eventual demand, a company can dispense with its external services without compromising its core stability.
Main areas prone to business process outsourcing
Business Process Outsourcing has a greater incidence in some areas of companies, although it is a resource that increasingly extends to more domains that require the formation of administrative teams. Among these are:
- Administration and finance: accounting, financial analysis, tax declaration, treasury, and cash management, accounts receivable and accounts payable, deductions, invoicing, spreadsheet and report preparation, records reconciliation, and data cleansing.
- Human resources: recruitment, payroll, training, administration of incentives for the staff, and control of complaints and suggestions.
- Customer service: call centers, claims, and surveys.
- Information management services encompass everything from support (software and hardware) and information flow control to information and communication technologies.
Intugo’s unique business model can enable companies of various sizes to form their administrative teams to operate a BPO facility in Mexico at reduced cost and risk. As a result, Intugo customers can increase their stability and productivity by forming these teams while minimizing liabilities.
Let Intugo work with you to optimally initiate and maintain a facility to function as a BPO center in Mexico. Contact us for more information.