Business Process Outsourcing (BPO) is a type of outsourcing involving contracting out a business’ non-core functions to a third-party provider. BPO aims to improve efficiency, reduce operational costs, and provide access to new skills and technology.
What Business Functions are Candidates for Business Process Outsourcing?
BPO is used by companies across a wide range of industries and can encompass a variety of functions, including Customer Service, Human Resources, Accounting and Finance, Supply Chain Management and IT Services. Let’s take a look at each of these functions below:
Customer Service Outsourcing
Human Resources Outsourcing
Accounting and Finance Outsourcing
Accounting and Finance functions can also be outsourced through BPO. This can include accounts payable and receivable, bookkeeping, and tax preparation. By outsourcing these functions, companies can reduce their Accounting and Finance workload, ensure accuracy, and improve the efficiency of their financial operations.
Supply Chain Management
IT Service Outsourcing
Why is Business Process Outsourcing so Vital for Company Growth?
Access to New Skills and Technology
Business Process Outsourcing can provide companies access to new skills and technology that may not be available in-house. This can help companies stay ahead and maintain a competitive edge.
For example, a company may outsource its software development to a BPO provider with expertise in the latest technology and development methodologies. The BPO provider may be able to allocate costs of expensive automation technology across a number of clients that the individual companies might not normally be able to afford.
Better Focus on your Core Business Activities
By outsourcing non-core functions, companies can free up resources and focus on their core business activities. This can help companies grow and become more successful in their respective markets.
For example, a company focusing on product development and marketing can outsource its customer service operations to a BPO provider, freeing up resources to focus on product development and marketing activities.
Business Process Outsourcing also Leads to Increased Scalability
BPO allows companies to quickly ramp up or scale down operations as needed. This can be particularly beneficial for companies experiencing rapid growth or fluctuations in demand.
For example, a company that shares a surge in customer service inquiries can quickly scale up its operations by outsourcing to a BPO provider. This can help the company meet customer demands while avoiding the need to hire and train additional staff internally.
BPO for Accounting and Finance
The Accounting and Finance function is one of the critical business processes that can benefit from Business Process Outsourcing (BPO). By outsourcing Accounting and Finance functions, companies can reduce their workload, improve accuracy, and increase the efficiency of their financial operations.
Here are a few key ways in which outsourcing Accounting and Finance functions can bring benefits to a company:
BPO providers can often offer cost savings by providing these services at a lower cost than what it would cost for a company to perform these functions in-house. This can be achieved through lower labor costs, reduced overhead expenses, and improved economies of scale.
Access to New Technology
Outsourcing Accounting and Finance functions can bring significant benefits to a company. For some organizations it may be a smart investment that can provide a range of business solutions to target short and long term success goals.
Business Process Outsourcing: FAQs
Are You Considering Business Process Outsourcing? IQ BackOffice Can Help.
Here at IQ BackOffice, we provide financial business process outsourcing for large and mid-sized enterprises. We serve a range of diverse industries, including manufacturing and distribution, healthcare and dental, restaurant and hospitality, energy, retail, and technology. Our solutions enable companies around the globe to automate and streamline the complex financial processes they manage.
IQ BackOffice reengineers financial processes to take advantage of best practices and leverage state-of-the-art automation. This allows us to remove manual or inefficient steps, delivering improved controls and up to 70% cost savings for our clients.
To find out more about how IQ BackOffice can reduce costs and streamline your Accounts Payable function, get in touch with us.