BPO franchises offer a replicable system for outsourcing business processes, allowing new vendors to enter the industry with an established operating system and brand reputation. This can increase customer confidence and lower barriers to entry, benefiting both the vendor and the industry.
A business process outsourcing (BPO) franchise is an outsourcing service provider who outsources its business structure and operational procedures to another outsourcing provider in exchange for a fee. There are some BPO service providers who have packaged their setup, business operations and service delivery into a replicable system that can be implemented in bulk by others. Many are willing to pay for the ease of knowing exactly how to start and run a business with some degree of excellence.
Outsourcing success relies on a third-party vendor convincing a company that it can manage one of its business processes more efficiently and at a lower cost than the company can in-house. This field implies the guarantee that the external supplier is able to provide the service flawlessly as ongoing support for the company. Therefore, the system for providing the outsourced business process is the product of the service provider. A prospective business owner may want to jump into the BPO industry but lack the experience to design and test a system that avoids the kind of new business process and mistake that would kill a BPO company’s reputation.
A prospective business owner looking to start an offshore BPO has the added difficulty of figuring out how to set up the service in a foreign country. Fortunately, there are many BPO providers who have fine-tuned a system of providing excellent service and have broken the set-up in overseas markets. These vendors package their own systems and offer them to would-be service providers as a BPO franchise. In exchange for branding, system design, and support, the affiliate typically pays a base commission plus a percentage of sales.
For example, call centers are a popular BPO franchise. Traditionally there has been a greater demand for phone-based customer service outsourcing than a single service provider could offer. Enterprising companies package their systems and license their brand reputation to people who want to get into the business. The franchise agreement takes the experiential component out of the project and allows a person with no functional experience to pay for an expert project that she simply has to follow.
BPO franchises can be a particularly effective way for a vendor to enter the outsourcing industry and for industry expansion. One of the key elements of a BPO service provider’s success is the ability to attract customers. Using an established operating system gives the new vendor an air of professionalism and excellence that can increase a customer’s confidence. Some new vendors have business relationships that can be turned into successful outsourcing if the vendor is able to get a system up and running quickly. The BPO franchise fills a need in both cases, lowering barriers to entry and breathing new blood into the industry.
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