BPO outsourcing not feasible for SMEs and Freelancing is not equal to BPO outsourcing….? Don’t worry VPO solves the problem

What is BPO outsourcing:

BPO outsourcing is the process of offshoring a companies “non core” departments to a third party in India. BPO outsourcing is a practice followed by large multinational corporations such as Bank of America and Virgin. BPO outsourcing helps such multinational corporations considerably reduce cost. The benefits of bpo outsourcing do not however cease there, for bpo outsourcing also increases a companies productivity. BPO outsourcing enables a company to focus on their core business competencies which in turn increases efficiency.

The problem with BPO outsourcing:

The problem with bpo outsourcing is that it is not a viable option for SMEs. The money and time required for the logistical setup involved in bpo outsourcing is considerable. Large corporations considerably benefit from bpo outsourcing because bpo outsourcing is implemented on very large scales. It is the concept of “economies of scale” which makes bpo outsourcing so effective. If a company is bpo outsourcing hundreds if not thousands of jobs then the time, money and effort required for bpo outsourcing is well invested.

If a SME is however looking at bpo outsourcing anything between 1 to 50 positions then bpo outsourcing is an impractical option. Opening an office in India, recruiting employees and investing in office hardware is not effective for such small scale bpo outsourcing.

The impracticality of bpo outsourcing has created a “vacuum” for SME’s. This vacuum is filled by freelancing. Freelancing is a practice many SME’s use because it is the closest alternative to bpo outsourcing. Freelancing however cannot produce the same results as bpo outsourcing.

Freelancing not equal to BPO outsourcing:

Freelancing is a very fruitful practice, for outsourcing short term projects. The problem with freelancing however is that it does not reap the same results as bpo outsourcing. Freelancing only gives SME’s access to short term candidates whereas bpo outsourcing enables companies to hire full time dedicated employees. Furthermore, the interaction and professional working relationship between client and freelancer cannot be equated to that found in bpo outsourcing i.e. one of an employer and employee.

BPO outsourcing enables large corporations to actually employ India’s low costing/talented employees. Thus with the exception of those who seek to outsource projects, freelancing is an inadequate bpo outsourcing alternative.

BPO outsourcing, freelancing and now VPO:

Is bpo outsourcing possible for SME’s?

Yes bpo outsourcing is possible for SME’s by Virtual Process Outsourcing or VPO! A concept created and initiated by www.VirtualEmployee.com. VPO enables SMEs to achieve the same results which multinational corporations gain from bpo outsourcing.

By VPO small to medium sized firms in America and Europe can directly hire full time, dedicated and permanent employees from around the world.