BPO increases company flexibility - Gbenga Adebayo, GCEO, CNSSL

DigitalSENSE Business News:

The Group Chief Executive Officer, Communication Network Support Services Limited (CNSSL), Mr. Gbenga Adebayo has said that Business Process Outsourcing (BPO) service increases company flexibility, reports DigitalSENSE Business News.

Speaking to DigitalSENSE Business News during a tour of the company headquarters recently, Mr. Adebayo expressed optimism that Nigeria is the next major destination for BPO.

He also told DigitalSENSE Business News that Business Process Outsourcing involves the contracting of the operations and responsibilities of specific business functions or processes to a third-party service provider.

BPO, Adebayo noted is typically categorized into back office outsourcing, and front office outsourcing, which includes customer-related services such as contact center services.

According to him, the main advantage of BPO is the way in which it helps increase a company's flexibility.

He cited in early year 2000s, that BPO was all about cost efficiency, which allowed a certain level of flexibility at the time.

“Business process outsourcing enhances the flexibility of an organization in different ways,” he said.

In addition, he said, most services provided by BPO vendors are offered on a fee-for-service basis, which could help a company to become more flexible by transforming fixed into variable costs. 

He pointed out that a variable cost structure helps a company responding to changes in required capacity and does not require a company to invest in assets, thereby making the company more flexible.

“Outsourcing may provide a firm with increased flexibility in its resource management and may reduce response times to major environmental changes,” he said.

Adebayo maintained that another way in which BPO contributes to a company’s flexibility is that a company is able to focus on its core competencies, without being burdened by the demands of bureaucratic restraints.

“Key employees are herewith released from performing non-core or administrative processes and could invest more time and energy in building the firm’s core businesses,” he said.

The third way in which, BPO increases organizational flexibility, he said, is by increasing the speed of business processes.

He insisted that BPO, therefore, allows firms to retain their entrepreneurial speed and agility, which they would otherwise sacrifice in order to become efficient as they expanded.

Remmy Nweke

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Pix: Gbenga Adebayo, GCEO, CNSSL