Outsourcing – a remedy for challenges in the SSC/BPO industry

In business process outsourcing, the global market value in 2023 reached USD 350 billion. By 2027, experts forecast a further increase to USD 450 billion, representing a compound annual growth rate (CAGR) of 6.48% between 2023 and 2027. The average cost of an employee reached USD 100.50 in 2023. Most global sales occur in the USA, while Poland is also progressing rapidly. 

Key Role of SSC/BPO in the Modern Economy 

The SSC/BPO (Shared Service Centers / Business Process Outsourcing) industry is an important economic sector playing a crucial role in the economy. The SSC (Shared Services Center) sector involves companies centralizing and standardizing business processes and support functions such as finance, accounting, customer service, human resources, or procurement into one shared services center. 

BPO (Business Process Outsourcing or Business Process Offshoring) refers to the sector that outsources business processes. Entities performing these tasks are located worldwide. Potential investors seek locations for their service centers in many Polish cities. Moreover, BPO is one of the fastest and most dynamically developing sectors in Poland. 

Corporations operating in this area target external clients, taking over the execution of their processes. Specific areas of the parent company's operations are transferred and outsourced to another unit. Companies using BPO services offload certain business processes not considered critical to the organization, opting to purchase these services from external firms. A BPO sector employee performs a specific type of work for various external companies depending on the contracts acquired by the company they work for. 

The primary objective of the SSC/BPO sector is to minimize own costs. Thus, it has significant importance in the context of non-IT outsourcing because it enables organizations to focus on their core competencies and strategic activities. 

Challenges in the SSC/BPO Industry 

The SSC/BPO industry faces many recruitment challenges similar to other economic sectors, impacting these organizations' effectiveness: 

• High Employee Turnover and Its Impact on Operations - High turnover is very common in the SSC/BPO industry. Employees have access to many job offers both on job portals and those received directly with a proposal to change jobs for more financially beneficial options or with the possibility of quick advancement. This negatively affects operational stability and service quality. 
• Difficulty in Acquiring Specialists in Certain Areas - The SSC/BPO sector often requires specialized skills, such as knowledge in narrow fields like Accounting Standards (IFRS or US GAAP) and dedicated systems/programs. 
• Changing Business Requirements and the Need for Continuous Competency Adaptation - The SSC/BPO industry is dynamic, leading to frequent changes in business requirements. Employees must be flexible and ready to continually improve their skills to meet new challenges and client needs. Employers must ensure regular employee training. Given that employees handle global processes, it is also essential to keep up with legal or tax changes in the serviced countries. 
• Job Market and Competition for the Best Candidates - Competition for the best candidates in the job market is exceptionally high. SSC/BPO companies must compete not only with other organizations in the same industry but also with firms from other sectors seeking specialists with similar skills. Particularly popular are recruitments for positions like accountants with German language knowledge, business analysts, financial analysts, or VAT accountants. 

These skills are highly sought after. Employers, wanting to ensure they find a specialist in a given area, compete in offered benefits and salaries. Here, utilizing recruitment services from a team specialized in SSC/BPO recruitment can be very helpful. Such teams not only have a candidate base and can quickly find a specialist but also can determine if the expectations of both the candidate and client fit market possibilities. 

How can recruitment outsourcing help solve SSC/BPO industry challenges? 

• Cost Reduction - Outsourcing can help clients significantly reduce operational costs. This is because hiring an internal team requires spending on salaries, training, insurance, infrastructure, etc. Outsourcing avoids these expenses, paying only for services directly related to the specific process. 
• Client Focus on Core Operations and Access to Specialized Knowledge - Through outsourcing, clients gain access to expertise and experience, which can improve process quality and minimize the risk of errors. 
• Increased Efficiency - Outsourcing processes can enhance the client's operational efficiency. Best practices, modern tools, and technologies, which the client may not have internally, can be utilized. 
• Time Savings - Outsourcing saves clients significant time they would otherwise spend managing the process and related administrative tasks. 
• Flexibility and Scalability - Services can be tailored to the client's individual needs. The level of service can also be adjusted as the client's company grows.