In this article, we’ll learn about the benefits of Business Process Outsourcing (BPO). Business Process Outsourcing is when a business outsources some or several of its operations to a third party. BPO is often used by companies that want to save time and money on business-related activities that can be completed by another company. After the global recession, many companies faced a financial crisis which caused revenues to drop significantly. That’s when manufacturing firms began outsourcing business operations to cut labor costs. Shortly after, businesses discovered many additional short and long term benefits of BPO.
Why Do Businesses Use BPO?
Many businesses opt for BPO solely to save money. However, there are many other benefits that come along with it. BPO makes business activities faster and more efficient. It also helps businesses put more focus, energy, and time on other important business activities. Many companies tend to outsource business activities to other countries, with the main objective to cut costs.
Let’s take this for example; a garment manufacturing company in the U.S. outsources its garment production and stitching to a company located in India. The reason behind it is that laboring cost in India is extremely low, which helps the garment company save a considerable amount of money.
How Does Business Process Outsourcing Benefit Business?
The great recession made many companies evaluate their financial decisions relating to different business operations. After losing lots of money, companies started to aim at low-cost labor and manufacturing services, which could only be possible by hiring external services in countries that offer lower rates for such services. Aside from costs, Business Process Outsourcing has allowed companies to benefit from other talents.
Increased Speed and Efficiency
BPO increases speed and efficiency within many sectors for both big and small businesses. Rather than scrambling to get numbers, run payroll, and compile financial data, your outsourced professionals have data and reports ready for you when you need them. The daily, weekly, and monthly reports help businesses quickly target weak points and develop strategies to improve their overall business practices. With the additional time saved from hours of financial and accounting work, time can be spent finding new and improved ways to increase internal efficiency.
Depending on the BPO company a business chooses to outsource their business operations to, conflict with time zones for particular clients can be eliminated. An in-house operations manager for particular projects are only around during scheduled hours, most outsourced businesses have professionals working around the clock 24/7, making it easy to quickly check tasks off the list any time of the day or night.
Focus on Core Business
Your business, big or small, is your livelihood, and every minute spent conducting business should be centered around growing it. Time is valuable, and when business owners spend unnecessary time, energy, and resources on services that external services can provide, it costs business owners opportunities to focus on vital internal operations. The added time business owners get from BPO services opens opportunities to build employee/client relationships, provide top-notch services, and target areas for growth… all while saving money and finally taking that much-deserved lunch break that kept getting put off.
The importance of BPO really becomes apparent when business owners can make core business aspects the priority of each workday.
Access to Sophisticated Infrastructure and Technology
Technology is constantly evolving. We see this change in the cars we drive to the headphones we put in our ears. It is no different when it comes to the infrastructure of a business. Whether a business requires updated finance software or office equipment from this decade, it requires time, money, and patience to learn how equipment and programs work. BPO solutions provide businesses access to the latest infrastructure and technology around. Educated professionals with experience and proper resources will serve you and your business with pristine and prompt service. You can go about your workday knowing that everything is being sufficiently handled.
Don’t bog yourself down with the daunting task of learning new systems, or spend thousands of dollars on updates when outsourced businesses are at your disposal to help your business thrive.
Fast and Reliable Services
You can never be completely sure what you are signing up for with a new hire. As the business owner, you’re responsible for conducting interviews, onboarding an employee, and providing weeks of training. With all the time and resources it takes to onboard a new employee, countless questions are left unanswered. Is this employee loyal to the company? Are they punctual? How quick will they learn and how fast will they work? BPO provides businesses with the peace of mind knowing that they can rely on a professional team who are experienced, work diligently to meet deadlines, and have already passed an interview that you didn’t need to conduct.
The services provided by a BPO are virtually unlimited… saving business owners time, stress, and money.
Long-term Cash Advantage of BPO
Companies that opt for BPO solutions get time to focus on creating new products, improving the old ones, conducting extensive market research, and improving customer service and satisfaction. This way they are able to increase sales and revenue. By reducing their overheads, companies save a lot of money, which results in increased revenue over the years.
Conclusion
Companies benefit from BPO services for a number of reasons with a primary goal of saving money. With the help of a BPO company, businesses don’t need to worry about hiring a workforce to do a task. They have the advantage of expert outsourced organizations to conduct business operations and gain access to resources that are not available internally.
However, companies that are making use of BPO services should be aware that choosing the right company is the challenging part. If you choose a company that handles your business operations poorly, you will lose lots of money and time. With the right BPO service, businesses can expect reduced cost from services, increased internal and external productivity, and ultimately a rise in revenue.
No matter the business, consider outsourcing work that can and should be done out of office.
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To learn more about how your business can benefit from BPO services, contact us today! We’d love to speak with you about how business service solutions from Fully Accountable can help you save time, money, and resources. Whether you need accounting services, your own CFO, business consulting, or much more, we have the BPO solution for you!
Chris Giorgio is the President of Fully Accountable. Fully Accountable is an outsourced accounting firm specializing in eCommerce and digital businesses. Chris has served as a CPA, CFO and has over 14 years of experience in the accounting and finance industry. Chris has dedicated his career towards helping entrepreneurs and high-level business owners achieve greater profitability through specialized outsource accounting functions.
