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Business Processing Outsourcing – The Big Picture

Specialization, division of labor and outsourcing are not new concepts. Such phenomena have been present for eons, emerging from the frame of humanity since the time of hunters and gatherers. In the beginning, the models were rudimentary; those talented at hunting, hunted and those prone to gathering, gathered before the profits were split. Today, the concepts are still simple but have morphed into involved business ventures to compensate for the technological and communicative advances of the world.

What is Business Processing Outsourcing?

The progress of worldwide digital connectively has been a quick and ardently accepted enterprise. Developing friendships, business partners, and expansive businesses from across the globe are not only possible, they are sought after and cultivated. Business owners and entrepreneurs have the world at their fingertips, allowing them to locate specialized service providers that can deliver quality assistance without breaking the bank. By outsourcing certain business activities executives curb the costs of labor and become free to delegate more important company issues. As such, partners overseas form an integral role in the success and growth of a business, and must be chosen with care and thoughtful consideration.

Originally, when the outsourcing revolution began in the 1990’s, India was the prominent nation procuring contracts with American based companies. Wage rates in India were much lower than those established in the US, and many executives were able to cut costs by outsourcing various management and development applications, otherwise known as information technology or IT services. And, as more and more companies realized the potential of outside assistance, new avenues of outsourcing were developed to further cost-saving measures.

Outsourcing support services or Business Processing Outsourcing (BPO) was the next stage in the evolution of foreign partnerships. Functions necessary to run a company but not related to the specific core of the business were diverted overseas, and once again owners and entrepreneurs were able to save money while expanding their service base. Processes such as payroll and employee benefits management were the first to be relinquished overseas, and now BPO encompasses everything from financial and administration procedures, human resource functions and data processing to call center and customer service activities.

Why Invest In BPO?

At its inception, BPO was an extension of IT services and a means to reduce company expenditures. In today’s fast paced, digital world BPO has grown into a chief component of growing, successful companies. Major corporations and individual entrepreneurs alike have realized the potential gains of outsourcing specific, non-core processes to specialized offshore accounts; and many developing countries have invested in quality networking and training centers to satisfy the growing service demand. Now, the benefits of business process outsourcing are undeniable, and directly linked to the growth and prosperity of a company.

For example, outsourcing helps improve the overall productivity of a company because it allows executives to focus their energy on crucial management tasks rather than simple, mundane, and repetitive process duties. Having day-to-day responsibilities administered by an outside entity frees up time needed to explore new areas for generating revenues, formulating new strategies, or simply focusing on customer satisfaction. Furthermore, it permits companies to focus on their core competencies, as they are able to review and analyze internal operations. By understanding their true skills and abilities, businesses can make the right adjustments needed for furthering their success and customer base.

Having more time during the day also breeds improvement among employees. Rather than rushing through repetitive and unchallenging processes, personnel have enough time and energy to complete obligations efficiently and are provided the opportunity to develop personal skills and abilities. And as they progress they are able to deliver innovative services and products to clients.

Additionally, management, administration and training of employees are also huge tasks that BPO can alleviate for small and large enterprises. Outsourcing business processes’ pertaining to human resource (HR) work not only frees up time and money, it provides the opportunity for businesses to develop strategic HR function. Because HR requires a lot of man power and time, businesses find themselves overwhelmed by the expansive responsibility. By delegating specific tasks to outside enterprises, companies are then able to perfect the main components of their HR departments, saving money and energy.

At its core, business processing outsourcing is an effective, reliable, and affordable way to increase business growth and elevate employee efficiency. Connecting with people from around the world provides a pool of specialization that can ensure the well-being and productivity of a company.

Daven Michaels is an award winning outsourcer, receiving more recognition and honor than any other outsourcing individual or organization. He is also the author of the renowned book Outsource This! To find more information on outsourcing please visit www.123Employee.com

12 Responses to “Business Processing Outsourcing – The Big Picture”

  1. Navienna says:

    It is always a fact that outsourcing brings a huge impact to the business industry. :-)

  2. Jevan says:

    Now that I discovered outsourcing, I can actually outsource the tasks that can be managed by experts and skilled personnel in certain field.

  3. Helen says:

    This is very informative and It is already proven that outsourcing projects to experts is the ideal solution in accomplishing certain business objectives with only investing less amount of money. Good Job Daven. :-)

  4. Maximilian smith says:


    Nice Blog,on the topic Outsourcing BPO.Really Nice one.
    Thanks for sharing this information.Keep Sharing more and more.Nice blog on Outsourcing BPO

  5. Thanks for this insightful guide. I actually run a law firm in the heart of New York and business has been good. I have always believed in the outsourcing philosophy and ready to give it a try. This write-up sure came at the right time. Thanks a bunch.

  6. Great article Daven. I think the 9th point about staff training is most critical going by the rate the internet changes every day; no one would want staff wasting time on obsolete technology. Your guide is quite useful for me. Thanks.

  7. Great piece of advice for all intending to go into the outsourcing business

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