Business process outsourcing is fast becoming the norm among large-scale companies and businesses, and offers some outstanding benefits. But it can also be a complicated venture, which is why strong LMS or other online company training is crucial for organizing and training employees whose work is outsourced.

What is Business Process Outsourcing (BPO)?

Business process outsourcing (BPO) refers specifically to the contracting of business processes to a third-party service provider, instead of having them performed inside the company. It can involve the outsourcing of basic business functions like human resources or finances and accounting (back office outsourcing). Or, it can include customer-related services like contact centers and user support teams (front office outsourcing). Offshore, nearshore, knowledge process, and legal process outsourcing are four sub-segments of business process outsourcing.

Of course, business process outsourcing (especially off- or near-shore) can save organizations a great deal of money. Everything from labor to overhead costs like electricity and water bills becomes cheaper. However, it also means that it becomes increasingly important that employees are part of a supportive and efficient training system, in order to ensure successful distance team work.

BPO is nothing new. Outsourcing itself can be traced to as early as the 1830’s, when the U.S. commissioned workers in Scotland to build ship sales and wagon covers. By the 1970’s many computer companies were outsourcing their payroll preparation systems to different financial offices who offered these services. Manufacturing companies like Coca-Cola also began to use business process outsourcing, and more and more businesses caught on to the trend as the 70’s passed. By 1980, almost all company accounting tasks, as well as other kinds of work, were being sent outside company walls.

In relation to the frequency of business process outsourcing taking place, companies are paying greater attention to their learning management system training and other online training systems. Everyone wants to secure a process that works for his or her company, to reduce the cost of training by finding a customized solution and making it both adaptable and repeatable.

It’s never been uncommon for organizations to outsource content development, such as learning programs, management and company training, including tasks such as the production of books, training materials, videos, and other educational materials.  LMS vendors offer benefits such as flexibility, customization, and cost-effectiveness to organizations using BPO.

In the past, before learning management systems and other online training systems, training employees was a more decentralized process. Oftentimes, companies could not even be sure how much money they were spending on training across their enterprise. The process varied widely from group to group, and company to company.

What is a learning management system?

Learning Management System (LMS) refers to an extremely efficient software tool used to facilitate learning by having a room where resources can be processed, organized and tests can be made. Teachers will connect using blogs and forums to enhance performance and retention. Learning Management System designs, operates and produces e-learning applications.

The most popular type of LMS is a server and user interface. The former produces, manages and delivers e-learning courses, while the latter operates inside your browser as a web portal used by administrators, teachers and students to access the content.

Reasons every BPO should use an LMS

Companies who use business process outsourcing can save money if they are able to centralize and repeat the process of training. This is where learning management systems are useful, since they allow users to create and deliver customized training solutions. Companies can make training their own, integrated with their logo and corporate color scheme. Learning management systems that use a pay-per-use business model make it easy to load and reload learning content as required for relevant, up-to-date training. This model allows organizations to help employees gain the skills and knowledge required in exactly the period of time necessary.

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Coggno.com provides premier learning management system platforms world-wide.