How to benefit from business process outsourcing
We’ve all seen the “Now Hiring” signs in store windows and online ads. It isn’t just your imagination—there’s a definite shortage of talent.
A Manpower Group survey recently revealed that 32% of U.S. companies struggle to find employees. That’s one-third of all companies in the United States.
If this sounds familiar and you’re feeling the pain of finding and keeping good employees, it may be time to get some extra help by outsourcing certain steps in your business process. Business process outsourcing (BPO) is a cost-effective method of tackling the challenges of the talent shortage. Outsourcing allows you to save time and free up human capital—maybe even your own—so you can focus on larger organizational goals.
It’s not hard to see why BPO is gaining traction for many small businesses. It allows you to remain flexible in how you attract and retain the best talent, both in-house and by using third-party providers. And with the right workforce in hand, you can run a successful business by recognizing the following benefits:
Efficiency
Outsourcing key business processes to an experienced third-party provider eliminates the time you usually spend onboarding, any learning curves associated with the job (new technologies, processes, etc.) and any extra time associated with training an inexperienced person to do the job.
Expertise
Receive the benefit of having an expert when you hire a dedicated provider of a specific service or set of services. Your new employee can easily jump into the job with experience and expertise. Plus, hiring someone with experience makes them more likely to think strategically and add value with new ideas and innovations.
Economics
It’s all a game of economics. When you consider the time and cost savings of outsourcing key business functions to a qualified and experienced partner compared to the investment required to recruit, onboard and train an employee who may or may not stay with your organization, the return on investment is usually very favorable.
Empowerment
It’s easy to feel empowered and empower others when you have the right team around you. Focused efforts produce much better results than scattering time and attention on unrelated tasks—or worse, tasks that you or someone else on your team lack the skills to handle at the expert level.
You don’t need to outsource all your services to reap the benefits of this approach. Use outsourcing to fill in the gaps. Begin with processes that require specialized expertise since it can be difficult to recruit and retain qualified staff in these areas.
Back-office financial management functions such as bookkeeping and business processes are popular candidates for outsourcing. Consider how having an expert team to handle monthly financials, accounts payable and accounts receivable—along with reporting—can support the success of your business by alleviating the time spent on these tasks.
Outsourcing your back office is a great first step toward gaining efficiency and peace of mind through BPO.
