Business process outsourcing involves contracting of the responsibilities and operations of particular business processes (or functions) to a third party service provider. BPO – Business Process Outsourcing is a subset of outsourcing. It is a valuable technique for organizations and companies searching for better ways to accomplish high performance by minimizing risk, controlling costs, increasing transparency, and fostering collaboration. BPO can be contracted outside the country of the company involved; this is known as offshore outsourcing. On the other hand, if BPO is contracted to an organization’s nearby country, it is known as near-shore outsourcing.
One of the outstanding benefits of BPO is its manner of assisting an organization to increase its flexibility. Company’s flexibility enhancement through business process outsourcing is achieved in different ways.
Two Distinct Categories of Business Process Outsourcing
Basically, two categories of BPO are identifiable;
Back Office Outsourcing: the functions included in back office outsourcing are internal business functions such as finance and accounting or human resources.
Front Office Outsourcing: customer-related services are included in front office outsourcing. Example of front office outsourcing is contact center services.
Benefits of Business Process Outsourcing
Large part of business process outsourcing services is offered on the basis of fee-for-service. This enhances the company’s flexibility greatly by transforming fixed costs into variable costs. What is the import? A variable cost structure is very helpful to an organization responding to changes in particular capacity, and a company would not need to invest in assets thus enhancing the company’s flexibility.
Outsourcing has the capacity to provide a company with increased flexibility in the aspect of resource management. It may also lower the time required to respond to major environmental changes.
Also, when BPO is involved, a firm is able to concentrate on its core competencies with much ease, and is not affected by the demands of bureaucratic restraints. Consequently, key employees are thereby relieved from carrying out non-core processes which tend to take their attention off the major issues of the organization. The secret lies in determining the areas that require more attention – product leadership, customer intimacy or operational excellence.
Thus, when a company’s key employees focus on one of these major areas (since the non-core aspects have been outsourced), the company is more likely to enhance its competitive edge. Also, business process outsourcing enhances organizational flexibility by speeding up business processes.
The importance of organizational flexibility cannot be overemphasized, and one of the best ways to enhance organizational flexibility is to embark on business process outsourcing. When flexibility is highly in place in an organization, a company would maintain its growth goals, while keeping away from standard business bottlenecks. Also, Business Process Outsourcing is a great strategy for a company to retain its entrepreneurial agility and speed.
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
In the world of internet marketing, online marketing outsourcing has become the trending topic. Apart from developing niche websites and other common tools for internet marketing, outsourcing is not entirely a new concept and in the past few years, online entrepreneurs have been taking advantage third party service providers to complete work on their behalf. Today, marketing outsourcing is mainly used to help boost the company’s marketing, particularly for those who cannot afford to setup their own marketing department. With the advent of new technologies and the development of various internet services, outsourcing has become widely popular among internet marketers especially in the aspect of web development, content writing, search engine optimization, link building, traffic generation, and list building among others.
With the popularity of online marketing outsourcing, a lot of companies are offering the same services to interested parties who have lots of marketing tasks to outsource. Because of this, there are certain factors to consider before a company should decide whether to outsource part of their marketing or not. Online marketing is a practical option, especially for those who are just beginning to set up their online businesses. The reason for this is that advertising on the internet is relatively cheap compared to other advertising options. If you know how to start your internet marketing, chances are you will be able to gain an edge in the online marketing world. However, you need to have a good marketing arm in order for you to be able to realize your business goals.
And since most beginning internet marketers do not have the full resources needed for implementing their internet marketing strategies, they need to employ the services of professional marketing companies that specialize in online marketing and promotion using a myriad of internet marketing tools. For any business to grow, having a well planned marketing strategy is highly important. Internet marketing can help you grow your business and reach your target market without having to spend too much on advertising costs and you can make this possible by outsourcing most of your non-core marketing requirements that can help improve your online presence.
One of the common mistakes of internet marketers when they are outsourcing their online marketing needs is the price. Sometimes, instead of being able to find a cost effective marketing solution, internet marketers end up spending more than they should due to poor quality results or improper implementation of a particular online marketing strategy. Although not all third party service providers that offer the cheapest price are inefficient, there are companies that offer their services at the cheapest price simply because they do not have the right level of expertise to compete fairly in the market. Their only option to attract customers is to offer outsourcing services at the cheapest rate possible in order to gain clients.
In order to avoid this common blunder when it comes to outsourcing your online marketing requirements, you need to make sure you have more than one outsourcing company to choose from. Do not limit yourself in selecting candidates based on the cheapest price they can offer. Always consider the quality of the service they can provide and their level of expertise on various internet marketing tools and services. It will not be cost efficient on your part when you have to outsource your article marketing to one company and search engine optimization to another. Apart from complicating your management system since you have more than one outsourcing company to oversee, it can also double your overall marketing cost.
Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com
Thriving in today’s business environment has become more competitive and demanding than ever. If you run a small business, it is most likely that you do not have all the skill set as well as facilities required to grow your business and gain a larger share of your market niche.
Even big businesses also lack certain skill sets in certain areas of their business. One of the ways to overcome your skill limitations and grow your business is to take advantage of outsourcing. When you outsource some of your company’s operations, you are managing uncertainty and helping your business to gain ground in any environment.
What is Outsourcing?
This is a good place to kick off. It is not surprising that some people have not heard about outsourcing or do not really have a good grasp of what the term is all about… Simply put, outsourcing refers to a strategic use of external resources to carry out certain business functions that were traditionally managed in-house, or functions that are beyond the core competencies of the outsourced company. The benefits accruing from business outsourcing are numerous; to mention but a few – cost reduction, access to talent that may not be available in-house, liability sharing and enhanced expertise. Outsourcing can be off-shore or in-country.
What Do You Outsource?
Here are the commonly outsourced business functions;
Information Technology
Popularly known as IT, Information Technology is one of the most outsourced functions on any business or organization. This involves programming, networking, system security, internet and other computer-based business functions. In the 21st century, virtually every business function and operation is built on IT platform. You can decide to outsource all or part of your organization’s IT functions depending on your IT needs. It is also wise to choose an outsourcing contractor that specializes on IT and has proven history to deliver high quality result.
Web design/Development/Maintenance
Web design/development/maintenance is also a commonly outsourced function, especially in online marketing. You want to make sure that your business website is designed, developed and maintained by an expert in the field.
Human Resources/Payroll Benefits
Some companies may choose to outsource their human resource management for better result. There is need to keep the communication line open at all times in order to get feedbacks and send responses related to your organization’s human resource issues.
Other outsource-able business functions include order fulfillment, accounting/billing, sales/business development, marketing/advertising, customer service/relationship management and others. When you choose the right outsourcing company for any business function, numerous benefits would flow towards your company. More importantly, you are better-positioned to compete in the fierce business environment.
Outsourcing has increasingly become an important part of business operation, consider outsourcing some of your organization’s activities today.
Pilippines Outsource Service: If you are considering outsourcing part or all of your business functions, you may want to achieve the following benefits:
Cost Reduction: the overall cost of business functions orservice is minimized with outsourcing. It entails scope reduction, re-pricing, quality levels definition, cost-restructuring, as well as re-negotiation.
Improved Performance: When a company embarks on outsourcing, it would have access to business operation best practices that would have been quite complex or time consuming to handle by the in-house employees. So, ultimately, such company would achieve improved business performance.
Creating More Leisure Time: this is especially for individuals who outsource some or all of their business functions to have more time with their families and also to minimize work stress.
There are numerous benefits that attract companies (both big and small) and individuals to business outsourcing. When looking to embark on offshore business outsourcing, Philippines outsource services are quite popular and cost-effective. Also, top quality services are rendered.
Are you looking to contract Philippines outsource vendor? Here are things you should look out for;
Assess the portfolio of the potential vendor: the portfolio should contain certifications in specific outsourcing areas as well as general outsourcing certifications. It should also hold proof of membership to relevant outsourcing body, either locally or internationally. In addition, references of past projects and their contacts should be part of the portfolio of a competent business outsourcing vendor.
Proof of required skill possession in the intended business operation or function. Potential Philippines outsource vendor that is specialized in web-based outsourcing may not perform satisfactorily in HR outsourcing, except it has multi-skilled staff. It is really more efficient to contract a company that has proven skills in the business area you need outsourced.
-Availability of well-defined processes for achieving your company’s outsourcing needs.
-Use of robust technologies
-247/7 support
-Workflow orientation
-Constant open lines of communication
-Process and domain specific knowledge
-Significant cost reduction compared to performing the same business function in-house.
-Successful business process outsourcing solutions
-Advanced processes that help in achieving maximized ROI (Returns on Investment).
The extent of your success with outsourcing will depend on the expertise and general abilities of the outsourcing vendor in your area of need. So, you need to search thoroughly, using the required industry-standards and other criteria.
Philippines outsource services are quite commendable for both in-country (if your business resides in Philippines) and offshore (outside Philippines) business outsourcing needs. However, the task of choosing correctly and effectively lies in your ability to do proper and extensive research. Don’t rush over it, sometimes it may take over six months, but it is worth such duration if the end result is excellent.
Custom software is a program developed from scratch to meet the specific program requirements of companies opting to use custom software rather than purchasing a generic application. Custom software development is no easy task and for companies with limited resources, using the services of IT outsourcing companies can help them get custom software at a cost effective rate. Most custom software development is designed to contain features that will allow it to be configured according to the needs of the company. This means that IT outsourcing companies can offer services for developing database programs or stand-alone software depending on the company’s specific requirements.
There are various benefits one can enjoy from using custom software via IT outsourcing companies although it does take quite some time before a particular customized software can be configured or developed as compared to ready – to – use software. However, once custom software development starts running, most companies find it to be more efficient and economical by using customized programming as an integral part of their company operations.
Outsourcing custom software development is advantageous for SBOs and medium scale business organizations that operate on limited budget. Because custom software takes time to create, small business organizations do not have to face the financial difficulty of paying for the program immediately. They also do not need to set aside capital for establishing their own IT team which is counterproductive, particularly when the software requirement is for a one time use only. As compared to buying a generic business application where you have to pay the complete fee at the time of your purchase, custom software development from IT outsourcing companies allows you to budget your finances over the cost of their services for software development. During the development stage, companies have the time to tailor it to meet their requirements where significant changes can be integrated as the software is being developed.
Another benefit of outsourcing custom software from IT outsourcing companies is that the business application can be developed using an existing program structure. This is more economical in the long run since the software will not be created from scratch. Companies often meet with program developers to evaluate what other components have to be added in the software to come up with a customized program made to meet the specific requirement of the company. This can also save the company a lot of money in training expenses, since only the part integrated in the existing program will need training to operate. The good thing about this is that IT providers can offer training during the stage of the software development which can save the company a lot of time spent on delays in operations, due to human resource orientation.
Outsourcing custom software development from reliable IT outsourcing companies allows business entities to develop a particular program that fits in with their business processes rather than changing their entire business operation to fit in to the programming of certain software for their operation.
The Philippines outsource industry has offered great advantages for companies in the business sector. The idea of performing one’s work so that the stability and flexibility of a company can be maintained is a great attraction for a profitable business. In the Philippines, the services being outsourced include call center operations, accounting and finance, IT services, customer support services and technical support which can mostly be obtained at very low costs compared when these jobs are done on shore.
Quality assurance and cost effective labor force is the main selling point of the Philippines outsource industry. BPO services are not new in the Philippine economy and it is a strict competitor of other offshore outsourcing destination like India and China for the past ten years. Although labor cost in India and China is far cheaper than in the Philippines, quality assurance is at the minimum. But Philippine BPO providers package these two factors so in the end, clients will still enjoy a sizeable savings and bigger ROIs when quality of work is translated into profit. A good advantage of BPO providers in this country is that 90 percent of its labor force can speak and write English fluently so it eliminates the language barrier which can hinder the with way decisions are made or instructions are understood. The country also has one of the highest literacy rates among other Asian countries which in itself are an excellent benefit for those looking for an educated and quality labor force.
The Philippine outsource industry took sometime before it was recognized for its world class quality. At present, the BPO providers in the country now offer various business process outsourcing services including hiring professionals as per the client requirements. Other BPO destinations within in the country are also opening up as companies look for better ways to save on operational expenses. BPO providers with operations within the country’s key cities are naturally expensive as compared to similar companies operating in the provinces. Other areas in Luzon particularly in the Bicol region are being explored and there are several call center outsourcing companies who are already operating in these locations.
The expansion of BPO operations in nearby provinces is a clear sign of growth for the Philippines outsource industry. The good thing about the offshore outsourcing industry in the country is that even the Philippine government is highly favorable for the growth and multidimensional improvements which significantly help companies hire highly skilled workers ready for employment in just a short notice. The bottom line here is that the BPO services in the Philippines come in a variety of specialization which helps enhance not only its customer support but IT enabled solutions as well.
Part of the growing economy of the country is attributed to the continued and consistent growth of the Philippines outsource industry. With a number of foreign investors lining up to get a fair share of the profit, companies now have vast options when it comes to choosing the right BPO provider in the Philippines.
Offshore outsourcing is the new and most effective way of running a business. Big companies often outsource part of their non-core business operation to other countries where they have the opportunity to take advantage of a much lower labor cost. But there is more to it than a cheaper workforce. Offshore outsourcing services allow companies to perform their core responsibilities while focusing all their efforts in developing more business opportunities. Offshore outsourcing services to developing countries can provide key benefits and financial advantages on the part of the company utilizing BPO providers such as:
The tax base is significantly decreased because the costs of agreement will be shouldered by the BPO provider.
Companies will also save a huge amount of money on wage taxes.
Companies using offshore outsourcing services are also not obliged to pay for vacation leaves which can also affect manufacturing processes due to lack of manpower when an employee is on leave.
Hiring new employees can add up to the operation expenses of the company. When services are outsourced from offshore destinations, the BPO provider will be the one who will have to shoulder the training expenses and other related costs associated with employee education.
Offshore outsourcing services also provide manufacturing companies with a number of benefits. These include:
Manufacturing companies will be able to focus their attention in looking for a viable solution when main production glitches arise instead of dividing company resources between manufacturing process and managerial operation.
Companies will not be required to look for employees with the skills needed to perform a specific job description.
The BPO providers that specialize on specific services can solve manufacturing problems faster because they know the ins and outs of running the operation.
Organizations today are more confident with offshore outsourcing services particularly in the IT sector. Information technology is a growing industry and it is now an important tool for improving a business. When these skills are not available in-house, outsourcing could be the key solution and companies will be able to get access to professional services that can guarantee top of the line results. There are offshore outsourcing destinations like the Philippines and India where BPO providers can offer a qualified workforce not only for IT requirements but for other business process requirements as well, including customer and technical support. Offshore outsourcing services may range from data entry to programming, call center services with IT enabled solutions, back office operations, web development services, and infrastructure. Other offshore outsourcing services are communication and networking, medical transcription, onsite services with customer support, relationship management, and community management among others.
With the ever increasing globalization of business, outsourcing services prove to be the most cost effective way of running a business geared towards expansion and growth. The growing presence of offshore outsourcing companies in countries like the Philippines and India is a sign that outsourcing is fast becoming the norm for increasing profits while reducing the company’s operational expenses.
Custom software for business processing can increase the efficiency of any company who integrates custom applications in their work process. In today’s technological era and growing IT outsourcing industry, it has become a necessity to use IT advancement especially for business entities in order for them to adapt to the ever changing market conditions and meet the demands of their clientele. The competitive industry of all types of ventures drive business entities to come up with effective programming solutions tailored meet to the specific requirements of their business operation. This particular market demand has made valuable recognition of the importance of having customized software application that can help the company’s operation run more efficiently. Among the IT outsourcing benefits for custom software development include effective business management, supervision, and diminishing of unnecessary operational expenses.
In every aspect of a particular business operation, having customized software application as an integral part of the entire business setup and procedure allows the company to run more efficiently. One of the major IT outsourcing benefits is the immense knowledge of IT providers on the field of program development as well as the experience to implement it effectively in parallel to the entire business. Developing a custom software application starts with the evaluation process with regards to the application requirement of a particular business entity where the software application is to be integrated. This can be a very rigorous process and companies will be sacrificing much of their resources should they decide to do this in-house.
It is important to understand all vital factors involved in a developing customized software applications for a business operation. This process will serve as the determining factor whether or not the custom solution will help improve the business operation. This will also play a crucial role in deciding which of the IT providers to choose that can offer more IT outsourcing benefits such as competent customer support, cost effective program maintenance, and other related concerns. The IT outsourcing provider must have a full understanding of the entire business structure and learn the needed requirements for the business to be able to run efficiently as expected by the company. This can be done by meticulously planning the specific approach to be used and creating a structure of the entire business operation which will be integrated in the end result of the customized software application.
With the integration of customized software application in the entire operation of a particular business entity, business owners now can have that perfect custom solution that will work best for their businesses. This is one of the outsourcing IT benefits that cannot be achieved through packaged software application. This is guaranteed to work for all types of business and this is one of the major reasons why most SBOs with a limited budget that are aiming for increased efficiency in their business operation opt to use customized software application by outsourcing its development. Even small businesses will be able to have a functioning solution that is essential for successful business growth.
Business process outsourcing involves contracting of the responsibilities and operations of particular business processes (or functions) to a third party service provider. BPO – 
Thus, when a company’s key employees focus on one of these major areas (since the non-core aspects have been outsourced), the company is more likely to enhance its competitive edge. Also, business process outsourcing enhances organizational flexibility by speeding up business processes.
With the popularity of online marketing outsourcing, a lot of companies are offering the same services to interested parties who have lots of marketing tasks to outsource. Because of this, there are certain factors to consider before a company should decide whether to outsource part of their marketing or not. Online marketing is a practical option, especially for those who are just beginning to set up their online businesses. The reason for this is that advertising on the internet is relatively cheap compared to other advertising options. If you know how to start your internet marketing, chances are you will be able to gain an edge in the online marketing world. However, you need to have a good marketing arm in order for you to be able to realize your business goals.
Outsourcing custom software development is advantageous for SBOs and medium scale business organizations that operate on limited budget. Because custom software takes time to create, small business organizations do not have to face the financial difficulty of paying for the program immediately. They also do not need to set aside capital for establishing their own IT team which is counterproductive, particularly when the software requirement is for a one time use only. As compared to buying a generic business application where you have to pay the complete fee at the time of your purchase, custom software development from IT outsourcing companies allows you to budget your finances over the cost of their services for software development. During the development stage, companies have the time to tailor it to meet their requirements where significant changes can be integrated as the software is being developed.
Quality assurance and cost effective labor force is the main selling point of the Philippines outsource industry. BPO services are not new in the Philippine economy and it is a strict competitor of other offshore outsourcing destination like India and China for the past ten years. Although labor cost in India and China is far cheaper than in the Philippines, quality assurance is at the minimum. But 
In every aspect of a particular business operation, having customized software application as an integral part of the entire business setup and procedure allows the company to run more efficiently. One of the major IT outsourcing benefits is the immense knowledge of IT providers on the field of program development as well as the experience to implement it effectively in parallel to the entire business. Developing a custom software application starts with the evaluation process with regards to the application requirement of a particular business entity where the software application is to be integrated. This can be a very rigorous process and companies will be sacrificing much of their resources should they decide to do this in-house.
