Business process outsourcing, commonly known as BPO, is the trade of services between a company and an outside supplier, or provider of services. Here are a few benefits of outsourcing.
The BPO Industry has been gaining popularity these days, providing both core and non-core services to organizations in need of outside expertise and objectivity. Services that are commonly outsourced include bookkeeping, payroll, accounts receivables,customer services, marketing, and more.
Of course many companies choose to have full-time staff dedicated to the aforementioned tasks and services, which in certain cases is the right decision. The key, however, is to analyze objectively if your business is getting the desired result from this decision. And do you think the amount of investment you put on it is worth the result?
Many companies are realizing the ongoing benefits to outsourcing. Here are a few:
- Cost effectiveness: In most cases, the profit growth offsets the investment you put in paying business process outsourcing companies. So contrary to general belief that outsourcing is expensive, you are actually saving money with the increase in profit and income.
- Access to outside expertise: BPO companies house experts with creative talents and experts with analytical prowess. You are assured that your business is in a balanced packaging, increasing your profit and building a better image for your company as well.
- Focus: by putting the nitty-gritty details of some non-core business process in the hands of these outside but trustworthy experts, your company can now focus on the more important tasks and transactions that require more of your physical presence and attention. The executive officers’ minds can focus on more strategic ideas and programs to improve the company’s performance in the market.
- Improved Productivity: BPO companies ensure that they give their clients better and faster services because they recognize the great importance of time in business. Time is money. So outsourcing non-core business processes buys the company more time and more production.
- Increased Competitive Edge: with the increased efficiency at work, organizations are given an advantage against rival companies in their respective industries. Since they have more time for inventing new things and ideas, improving products and services, they gain a sharper competitive edge against other companies that still struggle with their in-house processes.
Considering all these advantages, take a look at your own company and ask yourself if you can streamline operations and improve growth by outsourcing some of your work. If you find that your hands are often tied with the “dirty work” instead of the business of running your business, perhaps it’s time to take a look at what you can let the professionals take on for you.
We found a great resource on LifeHacker in which the author suggests asking yourself three questions when considering outsourcing:
- Am I procrastinating on this task? If I’m procrastinating, I usually don’t have the resources, knowledge, or skill proficiency to do it well.
- Do I dread starting this task? If I view the task with dread rather than excitement, this signals that I don’t actually want to do it. This means that I won’t bring the level of passion and ownership that I would if I were exciting to me.
- Am I awesome at this task? If the answer is “no,” chances are good that you can find an expert to help you out. If the answer is “yes,” it’s time to reshuffle your priorities and outsource something else to free up time.
We would go a step further and do a little financial analysis on what it costs to complete the task in-house versus sending it out. At P2Binvestor, we have to give a special shout out and endorsement of Ruby Receptionist, one of the best outsourcing decisions we made.
P2Binvestor is a crowdfunding platform for working capital financing and a leader in crowdfunding receivables. P2Binvestor utilizes the power of technology and its crowd of accredited investors to simplify lending and provide working capital to growing businesses faster and at more affordable rates. The company offers three flexible products: A receivables-purchase product, an asset-backed line of credit, and a credit line secured by future revenue (designed for SaaS companies). P2Binvestor lends to companies in all 50 U.S. states in various industries including staffing, natural foods, manufacturing, technology, and more. P2Binvestor has been providing businesses’ receivables financing since December 2012. For more information, like us on Facebook and follow us on Twitter @P2Binvestor.