Introduction
Outsourcing is already established, many companies whether small or big are already using this and it will continue to be one of the most useful business solutions for decades to come. Business Process Outsourcing (BPO) refers to the practice of hiring a party outside the company to perform various business functions or tasks. Although some substantial risks and challenges come with negotiating and managing outsourcing agreements, outsourcing will still bring big benefits to your business. Here are some ideas about outsourcing.
Business Process Outsourcing May 12
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BPO was first used in the manufacturing industry, such as soft drink manufacturers. They outsourced huge parts of their supply chains, often involving raw materials, production, and distribution of goods and services. They found that third-party vendors could offer more skills, speed, and cost-efficiency to the process than an in-house team could.
Do you delegate tasks to other people so that you can focus on the things you really want to do?
Companies in other industries eventually adopted it. Today, corporations use this strategy as a cost-cutting measure. Delegating the less vital processes to other people allows the firm to focus on its strategy, core activities, and expansion of its operations.
What are the most common services or tasks that businesses or individuals outsource?
BPO companies usually have two common services: Back-office and front-office. Back-office operations include payroll, accounting, data management, software and web development, and other non-customer-facing or administrative tasks. The front office is responsible for exterior activities such as sales and marketing, customer care, and IT-enabled services.
How big is the BPO industry in your country?
Outsourcing is not just for big companies, it's for small businesses too. Most successful business owners know the power of delegating tasks because they can't do everything. Highly qualified professionals are available and accessible online as more and more individuals can now work in any location because of the advances in technology.
Have you heard about digital nomads? Have you ever thought of leaving your 9-5 job and starting your own business?
Based on the Clutch 2019 Small Business BPO survey, accounting and IT services are the most widely outsourced tasks. This is because they are highly technical and involve specialized skills. For instance, account receivables/collections, cash flow, paperwork management, monthly bookkeeping, and payroll management are something business owners would delegate to an experienced accountant rather than do it themselves.
How do you feel about your current job? What do you feel about the growth of your company?