Thought Leaders: Benefits of Business Process Outsourcing for Organizations
Business process outsourcing (BPO) is a way for businesses to streamline their workflows and reduce overall operating costs. Outsourcing the day-to-day business processing tasks means less strain on staff in many departments and more time and resources open to move the company forward. Learn from leaders about the benefits of business process outsourcing for organizations:
Let Your Executive Team Focus on Strategy
Business process outsourcing can be instrumental and extremely important to the growth of large scale organizations. BPO can help executive teams solve problems within their company where they do not have the expertise to manage the process or execute the process efficiently. By employing a third-party company to handle sensitive and critical business components, BPO companies can help the executive team focus on strategic and tactical goals of the company.
Companies that understand areas of weakness and how to gauge the importance of the weakness can opt for a BPO company to assist and provide higher level of expertise and critical management. As a management consultant, I suggest that companies evaluate their strengths and weaknesses and determine if they can hire the expertise or if it is easier to outsource. Outsourcing is a definite option in areas where the expertise needed is limited and may not have the human resources to bring in-house. My advice to a company is to weigh the positives versus the negatives of using a BPO company and also have a strong manager to control that specific relationship.
– Ray McKenzie, Founder and Principal, Red Beach Advisors
Embrace Digital Workflows to Remain Competitive
Traditionally, business process outsourcing has been used by large scale enterprises to increase operational efficiencies at reduced costs. However, as automation solutions come to the forefront, BPOs need to consider implementing robotic technology into their existing strategies in order to remain relevant and provide the most value in an increasingly competitive business landscape. With the right automation solutions, organizations will be able to outsource routine, rules-based work to robotic workforces, giving internal employees the ability to pursue more entrepreneurial, value-added work.
– Ian Barkin, Co-founder and Head of Strategy, Symphony Ventures
Improve Costs and Boost Innovation
For most enterprises, the benefits from business process outsourcing are attributable to scale. The principal benefits are generally realized in two categories – cost and innovation. Cost in that by combining similar operations from different enterprises, a business process outsourcer can realize greater efficiency through acquiring more specific expertise (ie. the experience curve). Also, innovation in that when enterprises are willing and able to adopt the practices from a business process outsourcer they will often be able to take advantage of increased capability developed by organizations run at a larger scale with a specific focus on the process in question.
– John Stieger, Chief Marketing Officer, Wilke Global
Reduce Labour Costs and Always Remain Up-To-Date
The purpose behind BPO is for companies to avoid depleting resources on business functions that do not directly drive the company’s core business. Two specific examples that benefit organizations are IT Help Desk and Training & Development. With the IT Help Desk, in many cases, this can represent some of highest labour costs per person when provided in-house. In addition to the necessary space and capital required to house, the Help Desk expenses are required to staff and host a department large enough to support the organization. In terms of Training & Development, organizations may look to outside companies for training in specific knowledge areas (financial SVCS, software development, etc.). This allows the company to stay on the cutting edge of knowledge trends without needing to keep full-time staff, if unnecessary.
– Walt L. Jones III, Principal, SEQ Advisory Group
Octacom is a leading provider of quality business process outsourcing services. Octacom offers document management as well as processing, distributing, accessing and long-term archival of high volume business documents and data. Learn more about Octacom’s business process outsourcing for organizations.