Benefits of Business Process Outsourcing

By June 7, 2016December 5th, 2023No Comments
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Business process outsourcing has become a widely accepted global strategy implemented by today’s businesses. Technological advancement and online solutions such as cloud computing and business process as a service (BPaaS) contributed to this shift. Industry experts believe that the growing interest in outsourcing can be attributed to the following benefits:

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Control and reduce cost

Saving cost is one of the most compelling reasons why many companies go into outsourcing. Companies can take advantage of the lower labour cost by outsourcing tasks to companies operating in developing countries. Initially, Philippines, India and Vietnam are good outsourcing destinations. Outsourcing reduces, if not eliminates, the costs associated with finding, hiring and training the staff.

Outsourcing also helps companies control their capital outlay. This is important especially for small businesses with a restrained budget for office equipment or rent.

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Access to a wider pool of talents

Finding people with the right skills and willing to work at the reasonable rate can be challenging and time-consuming. Business process outsourcing helps employers find the perfect candidate.

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Focus on core competencies

Businesses consist of many moving parts that require attention, which an average business owner or manager may not have the time or expertise to handle. Juggling between different tasks while looking after a growing organisation can be detrimental to the business. What areas of the business are distracting you from focusing on your core goals? Outsourcing these aspects will save the company time, manpower and infrastructure that can be better spent on core areas of the business, thus increasing operational efficiency.

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Time zone advantage

Depending on the work required, companies can take advantage of the time zone differential between the company and the outsourcing partner’s location. For tasks that require regular monitoring and close collaboration during working hours, outsourcing to a company with the same time zone would be ideal.

Some companies leverage the time zone differences to reduce turnaround time. The outsourced team can pick up tasks while they sleep, allowing the work to be completed faster and giving the business round-the-clock support.

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One of the challenges in any business is meeting a sudden increase or decrease in demands for products or services. Hence, business process outsourcing provides companies with the flexibility to expand or cut back on operations without the complications of hiring, overworking firing staff.