As the global economy continues to struggle its way back to health, mid-market companies still feel the pinch of financial crisis. In an effort to shore up economic positions, many companies are considering the option of reducing costs with business process outsourcing (BPO).
According to 2013 statistics gleaned from a sampling of businesses using this option, 55 percent of businesses polled revealed that the main reason for choosing BPO services is cost reduction. The cost of outsourcing the back-office can be 40% lower than the same operation in-house.
Outsourcing routine business processes can reduce back-office costs and increase capital for investment in front-end, income-generating operations. Those investments, in turn, strengthen the financial position of cash-strapped companies, allowing for more dynamic growth.
It can also be a viable risk management solution. BPO arrangements are generally structured to ensure that business continuity and compliance guidelines are met consistently and appropriately.
There is value in data as well. BPOs also provide valuable data regarding the efficacy of business processes. This enables a quick response to problem areas, and allows management to shape business policy and goals more efficiently and accurately.
Done well, you can also improve service to the business and offer additional benefits such as 24/7 business operations without the high price tag associated with comparable in-house versions of the same.
Taking a longer range view, perhaps the most important benefit of business process outsourcing is competitive edge. Using BPO allows a business to focus on its core competencies, relegating other business practices to the provider. A focused business is most often a profitable one.
If you would like more information about how a BPO solution can be tailored to fit the needs of your business, please contact us for a consultation today.