Why Is BPO Seat Leasing a Strategic Option for Businesses?

Posted on:
January 16, 2023
min read
Mark Daniel
Table of Contents
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What are the challenges of outsourcing to developing countries?
Top 5 Most In-demand Developing Countries for Outsourcing
What are some successful examples of companies that have outsourced to developing countries?
What are the best practices for outsourcing to developing countries?
Why Is BPO Seat Leasing a Strategic Option for Businesses?
KDCI Outsourcing
September 6, 2023

Are you ready to take your business to the next level? BPO seat leasing is the key to unlocking your business potential by providing a cost-efficient and flexible solution for establishing a remote team — the perfect extension of your in-house team. Whether you are a small business looking to expand or a large enterprise seeking to outsource non-core activities, BPO seat leasing has something to offer. Read on to learn more about the definition, types, and benefits of BPO seat leasing and how it can help your business grow this 2023.

What is seat leasing in the BPO industry?

Seat leasing is a cost-effective way for companies to establish a remote office in another country without having to invest in the physical infrastructure required for it. It involves a service provider, usually a business process outsourcing (BPO) company, leasing office space and equipment to the client, and managing the facilities.The client, in turn, is responsible for recruiting, training, and managing their own employees who will be working in the leased office space. This approach allows the client to benefit from the BPO company's existing investment in the physical infrastructure, such as office space, equipment, and facilities management. It also allows them to establish offshore operations without incurring high costs associated with setting up a new office, such as rent, utilities, and equipment expenses.Additionally, the client has more control over their employees, as they handle recruitment, training, and management themselves. This means they can ensure that their employees are a good fit for the company culture and have the necessary skills to perform their job functions.Overall, seat leasing is a flexible and cost-effective way for companies to establish a remote office, allowing them to expand their operations to another country while minimizing the costs associated with setting up a new office.

What is an example of BPO seat leasing?

Call center seat leasing is one great example. For example, a company that specializes in selling insurance products may not have the resources or expertise to manage its own call center.

An image showcasing a BPO seat leasing operation in the Philippines.

Instead, they may start leasing call center operations from a provider that specializes in call center management. The provider would then provide the necessary equipment, technology, and personnel to handle the insurance company's incoming calls. The insurance company would be responsible for recruiting and training their own agents, and managing the overall operation of the call center.

What are the different types of BPO seat leasing?

There are three different types of BPO seat leasing that every business should know: Warm Seat Leasing, Cold Seat Leasing, and Co-Working Seat Lease. We will explain the key features of each type and help you determine which one is best suited to your business needs.

Warm Seat Leasing

In this type of seat leasing, the BPO company provides fully-equipped workstations with all the necessary equipment, such as computers, phones, and internet access, for the client's employees to use. The workstations are also staffed with support personnel, such as IT technicians and administrative staff, to assist the employees with any technical or administrative issues they may encounter.

Cold Seat Leasing

This type of seat leasing is similar to warm seat leasing, but the workstations are not staffed with support personnel. The client's employees are expected to be self-sufficient and handle any technical or administrative issues they may encounter on their own. The BPO company still provides all the necessary equipment and facilities, but the client's employees are responsible for setting up and maintaining their own workstations.

Co-Working Seat Lease

Co-working seat lease, as the name suggests, is a type of leasing arrangement where employees from different companies share a common workspace. This type of setup is well-suited for companies with small teams and those that wish to hire employees outside their region. The main advantage of this type of leasing is that it provides access to all office amenities such as the reception area, pantry, and conference room, without the need to invest in them. To sum up, the type of BPO seat leasing that is best for a company depends on their specific needs and budget. Warm seat leasing is ideal for companies that need a fully-equipped workstation with support personnel. Cold seat leasing is ideal for companies that are self-sufficient and prefer to handle their own technical and administrative issues. And lastly, co-working seat leasing is ideal for companies that need a flexible and cost-effective way to establish a remote office.

What are the benefits of BPO seat leasing for your business?

BPO seat leasing offers a lot of benefits most businesses are not aware of. Let us help you explore the many benefits of BPO seat leasing, so you can determine if this solution is right for your business.

Save on costs

BPO seat leasing is a cost-efficient solution for small and medium enterprises (SMEs) and start-ups. The cost of renting office space, especially in urban areas, can be quite high due to the high demand for commercial spaces. Established companies are willing to pay premium prices to occupy these spaces, which drives up rental costs. This can be a major challenge for SMEs and start-ups, which often have limited budgets. Leasing a seat solves this problem by providing a more affordable alternative to traditional office space. Instead of renting a whole office, companies can lease individual seats or desks in a shared office space. This can be significantly cheaper than renting a traditional office space, as the costs are shared among multiple companies. For example, a start-up that needs 10 seats for its employees can lease them in a shared office space for a fraction of the cost of renting a whole office. This allows the start-up to focus its resources on its core operations, rather than on infrastructure and office management.

Scale up fast

Seat leasing is a flexible and customizable solution for companies of all sizes. The contracts for seat leasing are usually straightforward, and can be modified and adjusted depending on the company's changing needs. This allows businesses to scale up or down their office space as needed, without having to worry about long-term leases or expensive cancellations. BPO seat leasing also operates 24/7, even during weekends and holidays, which makes it an ideal solution for companies with shifting schedules. This allows businesses to maximize efficiency, by ensuring that there is always someone available to answer phone calls, answer emails, or perform back-office tasks, even outside of regular office hours.

Access expertise and latest technology

BPO seat leasing providers typically have a lot of experience in managing office spaces and providing support services. This allows businesses to take advantage of their expertise and resources, without having to invest in them. For example, an outsourcing service provider typically has a team of IT professionals who can help businesses with their IT needs, such as setting up and maintaining computer systems, troubleshooting technical issues, and providing software and hardware support. This can help businesses to save costs, as they do not have to invest in hiring and training their own IT staff.

Improve data security

To secure sensitive data, BPO seat leasing companies frequently have strong security measures in place. Businesses can benefit from this by feeling secure in the knowledge that their data is safe and being protected from data breaches. For instance, many BPO companies have strict security protocols in place to protect against unauthorized access to their facilities. This may include measures such as keycard access, security cameras, and security guards. They also ensure that their computer systems and networks are protected by firewalls, anti-virus software, and other security measures to prevent hacking and data breaches.

Better focus on core business functions

BPO seat leasing allows businesses to outsource non-core activities, such as product information management, and focus on their core business activities. By outsourcing non-core activities, businesses can concentrate on their revenue generating tasks and increase their bottom line. For example, businesses can outsource Ecommerce tasks such as product catalog management and data entry to a service provider. This allows businesses to focus on their core activities, such as product development, marketing, and sales, without having to worry about managing their office space.

Build the Best Offshore in the Philippines — Partner with KDCI

Top global companies that offshore their operations to the Philippines can take advantage of 70% cost reduction on operational expenses. With the Philippines’ low cost of living and competitive wage rates, you can increase your operational efficiency while keeping a positive cash flow. If you’re a small company with a growing demand for additional staff, building an offshore team in the world’s top outsourcing destination is a smart move. Offshore staffing companies like KDCI can help you set up the perfect extension of your in-house team in the Philippines. Our multi-layered quality assurance, effective oversight management, top-notch data infrastructure, and 100% backup power can guarantee fast ROI from your offshoring initiatives. Do you want to get started? Then, click the button below and get a FREE consultation with one of our experts today! Contact Us

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