As subset of outsourcing, business process outsourcing involves the contracting of the responsibilities and operations of a particular business process or function to a third party vendor or contractor. Before now, the term was associated with manufacturing organizations like Coca Cola that outsourced a huge source of its supply chain. However, in the present context, business process outsourcing (BOP) is used basically to describe the outsourcing of a company’s operations to business process outsourcing companies.
The business processes outsourced include in-house or internal business functions such as finance, accounting, and human resources management – these ones are known as back office functions. There’s also a category known as front office outsourcing, the business processes under this category include contact center services which is customer related services. A company can decide to embark on offshore (outside its country of operation) business process outsourcing or contract in-country business process outsourcing companies.
Most times, business process is known as ITES-BPO – meaning Information Technology Enabled Services. Other sub segments of business process outsourcing are KPO – Knowledge process Outsourcing, and LPO – Legal Process Outsourcing. Your company can only benefit from business process outsourcing when the right outsourcing company is chosen.
Why Your Company Would Benefit from Business Process Outsourcing
The Company’s Efficiency is Boosted
The business world is becoming increasingly compliance-driven. It is almost necessary for every business organization regardless of its size, to maintain processes that are deemed necessary, though not contributing substantially to the actual productivity. Since a great deal of these processes require special expertise and skills, most of them are highly time-consuming. As a result, organizations can rarely manage these processes without being distracted from the core business processes.
Thus, business process outsourcing companies help you carry out these processes efficiently, so that you can channel your resources (time and other resources) to your core business. The ultimate outcome is significant time savings, as well as boost in efficiency.
Ultimately, a company or firm would achieve substantial costs savings when it embarks on business process outsourcing. Since the entire responsibilities are undertaken by a third party company that has the expertise to handle the entire process cost-effectively, the hiring company will ultimately achieve significant cost saving.
Overall Business Success
The secret is skilled business process outsourcing professionals. This is why you must be thorough when trying to make your choice from the various business process outsourcing companies available today.
Outsourcing has become a necessary part of operating a business since CEOs and business owners discover the cost-effective advantage and other benefits associated with outsourcing. You can make up for skills, facilities and expertise lacking in your organization by opting for business process outsourcing.
Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com