Business Process Outsourcing - BPO -is hiring an outside party to handle standard business tasks. These outsourced employees are not members of the company but operate as independent contractors, either as part of a business or a solo venture.
There are multiple tasks that businesses outsource rather than handle in-house. Here are some of the most common jobs that companies use for outsourcing.
Many businesses prefer to outsource their accounting rather than paying for a full-time, in-house accountant. Outsourcing your accounting ensures your finances are accurate and saves money and time.
Businesses have to track their purchase orders to keep accurate records. Order entry is a tedious, time-consuming process. Allowing a third-party to handle the task means your staff can handle the important jobs.
Like order entry, companies also end up with a ton of data they have to keep expertly organized and compiled. You can outsource to get it done faster and cheaper.
Another task many businesses outsource is sales support. If you operate a small staff of crucial employees who have tasks vital to your company's operation, you don't want them stuck on support calls.
Many small businesses may not be able to employ a dedicated IT or software division. Outsourcing these technical aspects ensures your customers receive correct advice from trained staff that you don't employ.
Many small businesses and start-ups are not fully equipped with the staff, equipment, and knowledge to handle ancillary business practices.
Outsourcing non-core tasks allows your staff to focus on the main tasks of the job.
When you outsource tasks, you ensure that your staff has the time to focus on their regular tasks and responsibilities. Staff will have higher efficiency and productivity.
When you outsource tasks, you reduce hiring new staff. Rather than paying for new employees' training and salary, you can pay a lower fee to an agent.
When selecting a BPO provider, you need to consider the geographic location. BPOs operate as onshore, nearshore, or offshore outsourcing.
Onshore outsourcing means you contract a provider in the same country. Nearshore means in a neighboring country. While with offshore contracting - also referred to as offshoring - the party is in another country not close.
Finally, consider if the employee or company operates as a shared or dedicated agent. Shared agents also work with other clients. Dedicated agents work only for you.
When choosing an outsourcing supplier, especially with offshoring, ensure that the contractor is proficient in English. Offshore third-parties usually use staff that's not as accurate and efficient as a native-English speaking company.
If you're looking for ways to keep costs and the number of staff members low, consider BPO. Business Process Outsourcing can help your business run efficiently, reduce the stress on crucial staff members, and save money.