Business owners have a responsibility to meet regulatory and compliance standards within their industry, and that obligation extends to any third-party business process outsourcing (BPO) companies they hire for support. This makes BPO compliance just as important as having strict internal standards. Understanding adherence obligations for outsourcing providers can help you find a dedicated partner who’s committed to protecting your business, clients, and reputation.
What Is BPO Compliance?
BPO compliance encompasses all the rules, regulations, and contractual agreements that outsourcing organizations need to uphold. This can include both laws and general industry best practices.
These regulations can vary depending on the kind of outsourcing work they perform; for example, an organization that focuses on healthcare call center services might primarily be concerned about HIPAA and medical data regulations, while an accounting outsourcing team would likely focus on following tax law and financial laws. Because outsourcing teams can handle a wide range of back-office and administrative services, it’s critical for them to understand regulatory expectations across all industries they serve.
The Importance of BPO Compliance
BPO providers must comply with legal requirements and industry standards to function successfully. If an outsourcing business doesn’t value compliance, it could actively put its clients in jeopardy. For example, if an outsourcing organization has a data breach and doesn’t follow the proper steps to disclose and correct the issue, they could damage trust with clients — and their clients’ customers — along with getting into legal trouble and incurring fines.
When outsourcing companies take compliance seriously, they establish a reputation for professionalism and attention to detail, which fosters client trust. Because clients know they won’t run into regulatory issues when outsourcing their operations, they can confidently use outsourcing to help their businesses grow.
Common BPO Compliance Requirements
Being compliant as a BPO provider can encompass all types of business standards and expectations. Here are some common examples:
- Financial: Many companies outsource bookkeeping, accounting, billing, and other financial services. Businesses that offer financial call center services will need to follow financial laws and reporting rules to avoid issues like fraud.
- Human Resources: Any company that offers HR outsourcing must follow the specifications of local and national employment laws. This can include processes related to recruiting, training, termination, and other aspects of employee management.
- Data Privacy: BPO providers are responsible for securing their clients’ data. This includes financial information, protected health information, and customer details. They need to have cybersecurity systems and administrative protections to ensure that data is only accessible to approved parties.
- Corporate Management: Internal or corporate adherence involves making sure all employees and teams are following a company’s internal policies. Outsourcing teams can play a role in defining and upholding these standards. They will also need to follow the terms of their vendor agreement with their clients as an additional expectation.
- External Regulations: Certain industries, such as healthcare, have their own regulatory bodies, which have the power to administer fines, enforce sanctions, and enact other changes if a company doesn’t follow their rules. Outsourcing partners should familiarize themselves with the governing bodies that oversee their clients to ensure they’re meeting their expectations.
The Challenge of Maintaining Compliance for BPO Companies
Several significant challenges are associated with following industry-specific laws, rules, and expectations — especially for BPO providers. The following are some of the main considerations and how experienced providers overcome them.
Consistent Training
Outsourcing companies often operate at a large scale, with hundreds or even thousands of representatives working to support their clients. This means all reps need to understand the rules and regulations of any industry they serve. Trustworthy providers will often have a dedicated compliance team that focuses on training reps in regulatory practices and conducting audits to ensure everyone is fully compliant.
Documentation
Documentation is a critical part of adhering to industry and legal requirements. Many regulatory bodies require businesses to maintain documentation to verify their adherence to rules and industry standards. Managing and keeping these documents secure can be a complex process, especially for BPO teams that work with a high volume of clients. However, they can combat this issue by instituting consistent document management procedures and maintaining up-to-date databases.
Establishing Trust
It can be hard for businesses to trust anyone with their most sensitive information, even well-known BPO providers. Even outsourcing companies with the best systems will have to work to establish their reputations as trustworthy providers. This involves maintaining an open line of communication with clients, being transparent about compliance practices, and following through on all regulatory responsibilities.
Balancing Efficiency and Compliance While Outsourcing
Compliance with various regulations and laws can involve a significant amount of bureaucratic and administrative work. This can pose a significant challenge to outsourcing providers, who aim to operate as efficiently as possible. However, this is one area where businesses and the third-party teams they hire can’t afford to cut corners. Reputable organizations will make compliance a top priority.
Investing in compliant processes can help outsourcing companies and their clients avoid issues with regulatory bodies or government agencies, which can be costly and time-consuming. This means that following the rules and keeping track of industry best practices can help BPO teams operate more efficiently in the long run.
Achieving Your Outsourcing Compliance Goals
Compliance issues can be a major roadblock for an institution, and it’s essential for any business that uses third-party support to be fully confident in its ability to uphold rules and regulations. BPO teams with cross-industry expertise and in-depth, standardized compliance systems can offer reliable, effective support for their clients without increasing their risk. By partnering with a BPO provider that prioritizes compliance, businesses can maintain a strong reputation within their industry, helping them stay competitive in today’s regulatory landscape.
At Confie BPO, we understand the importance of keeping sensitive information safe and following industry expectations. We’ve established extensive compliance procedures that extend to a wide variety of verticals, so you can be fully confident that your operations are up to standard.
Discover how partnering with Confie BPO can offer you the regulatory support you need by connecting with us online or calling the team at 800-684-2276.
