What Industries Outsource Business Processes the Most and Why
What industries outsource business processes the most? Generally speaking, the most prolific users of business process outsourcing (BPO) services are those that have a moderate to large amount of repetitive and labor-intensive tasks. Examples range from document processing to customer service and support. Those with intensive regulatory guidelines and those with tighter profit margins that require financial savings through enhanced efficiency to deliver top-notch service routinely leverage BPO services too. Of course, these concerns could apply to just about any industry, which no doubt explains why BPO is so popular across the board. Below, we’ll dig into which companies use outsourcing the most and why it’s integral to running a successful business.
1. Healthcare
Healthcare providers are in the business of helping people stay well, but to do this, they must operate as efficiently as possible. After all, each dollar spent handling paperwork, scanning documents, managing accounting functions, and addressing countless other back-office tasks, all while maintaining compliance with HIPAA and other regulatory requirements, is a dollar that can’t be spent on patient care. Moreover, as speed increases through healthcare BPO, customer service and patient care get an additional boost, too. Data from Black Book Market Research indicates 90 percent of hospital leaders are considering outsourcing as part of their value-based care strategy, though the trend is growing in virtually all medical settings as well.
2. Shipping & Transportation
Many people don’t realize it, but shipping and transportation companies often have slim profit margins of 5 percent or less, per DATAMARK research, and they move nearly three-quarters of the country’s freight. Making the most of their time and their dollars is essential, which is why it only makes sense to outsource their non-core functions to a third party that can do it more efficiently than they can. Through transportation BPO, companies can tackle thousands of bills of lading, air waybills, customs forms, and other documents, plus address things like customer service and invoices.
3. Banking & Finance
While banks may have once managed all their back-office processes in-house, the recession became a major wake-up call that they weren’t always doing it cost-effectively. This, paired with the rise in fintech companies and increased focus on risk mitigation as well as business continuity planning, has made banking and finance BPO surge in popularity. Companies leverage outsourced call centers as well as functions like digital mailroom services, data capture, document scanning, and document storage and retrieval, gaining new ground by partnering with BPO firms that have a global footprint and understand the regulatory compliance needs of financial institutions.
4. Retail & Manufacturing
Large retailers and manufacturing companies can receive thousands of pieces of mail per day and often get overwhelmed when the volume of their contact centers fluctuates. Both these critical issues can diminish customer satisfaction and harm the bottom line, but they’re easily remedied through retail and manufacturing BPO services. By outsourcing these non-core functions, companies become more agile and profitable while improving customer service and their reputations.
5. Insurance
Insurance agencies cope with many of the same issues healthcare organizations do, particularly in terms of health insurance providers. However, administrative duties, regulatory requirements, and customer service needs can be overwhelming in any branch of insurance. Some of the most popular insurance BPO services include digital mailroom services, enterprise content management, and data capture, which can contribute to better service and lower operating costs.
6. Energy & Utilities
These are unique times for energy and utility companies. On the one hand, competition is mounting, and companies must keep their rates as low as possible to stay in the game. On the other hand, it’s challenging for agencies to increase their rates even when a hike is warranted. Meanwhile, infrastructure is aging, and demand is soaring. It’s through energy and utilities BPO that companies can increase efficiency and address many back-office processes like customer service and document processing in a cost-effective way.
7. Government
Countless government agencies rely on outsourcing to meet the needs of citizens cost-effectively. At DATAMARK, we manage several 311 contact centers, ensuring people can always get the information they need from their municipality when they need it. This is no easy feat because call volume fluctuates anytime there’s a major event. Yet, our infrastructure allows us to scale as needed, helping create a sense of calm no matter what’s happening locally. Depending on the agency and program, there is often large volumes of documents and mail to process and manage as well, all while ensuring compliance with all applicable regulations. By leveraging government BPO services, agencies can improve service and cut operating costs by as much as 40 percent, allowing their modest budgets to serve people better.
Learn More About Industry Outsourcing or See if it’s a Fit for You
DATAMARK has been leveraging our expertise and global footprint to bring results to all the industries outlined here for more than three decades. While this means we know your industry well, we also recognize that each company is unique and will benefit from a customized approach to BPO. Visit our Industries page to learn more or contact us to find out which BPO solutions can improve your company’s success.
FAQs About Business Process Outsourcing
BPO services benefit companies of all sizes, though the specific advantages vary by scale. Small businesses often lack resources to build specialized internal teams for functions like document processing or customer support, making outsourcing cost-effective from the start. Mid-sized companies use BPO to scale operations during growth without proportional overhead increases, while large enterprises leverage it to manage high-volume tasks across multiple locations. The key factor isn’t company size but whether repetitive processes consume resources that could be redirected toward core business activities.
Transition timelines depend on process complexity and existing infrastructure. Simple functions like customer service or document scanning might transition within 4-8 weeks, including knowledge transfer and training. More complex implementations involving regulatory compliance or system integrations typically require 3-6 months. Phased approaches allow companies to pilot outsourcing with one process before expanding, reducing risk while allowing adjustments based on early results.
Companies handle staffing transitions differently based on their needs. Some reassign employees to higher-value activities that support core business objectives, such as strategy development or customer relationship management. Others offer retraining programs to transition staff into new roles within the organization. Many companies find that outsourcing non-core functions allows them to invest more in roles that drive competitive advantage rather than eliminating positions entirely.
Yes, though the ease depends on contract terms and process structure. Well-designed BPO agreements include provisions for knowledge transfer and transition assistance if companies decide to insource operations. However, many discover that bringing functions back in-house requires significant infrastructure investment and hiring. The decision to return functions internally typically occurs only when business strategy fundamentally changes or when the outsourced function becomes a core competitive differentiator.
Quality control involves establishing clear service level agreements with measurable performance metrics, conducting regular audits, and maintaining open communication with BPO providers. Most contracts include penalties for missed targets and incentives for exceeding expectations. Companies often assign internal liaisons who monitor operations and ensure alignment with business objectives. Technology platforms enable real-time visibility into key metrics, allowing quick identification and resolution of quality issues.
