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Outsourcing: The Obvious Choice

  • Outsourcing: The Obvious Choice

Small businesses need to leverage all of their resources in order to stay competitive. Sometimes, this means letting go of some business processes and focusing on the company’s strengths. With Business Process Outsourcing (BPO) companies can focus on what they do best and leave the rest to processing specialists.

Business Process Outsourcing

Business process outsourcing means that you allow an outsourcing company to handle some of your back end business processes while you handle the front-end details that reel in clients. Moreover, for small companies, outsourcing often means relieving the business owner of tedious tasks so he can focus on   running the company.

Almost any process can be outsourced: human resources, payroll, marketing, tech support, CRM. There are benefits to small businesses that take advantage of BPO. If you outsource your tech support, for example, the costs involved will be negligible compared to the benefits your company will receive.

Benefits of Outsourcing

The benefits of outsourcing extend to your company and your customers. Your company will be more flexible and will have access to experts in the field you may not be able to afford in-house. If you were to handle tech support on your own, you would have to locate, hire and train employees. These employees will need to be available to clients at all hours, which means there may be times when they are idle but they won’t be able to handle other duties. Alternatively, you will have to pull employees from other responsibilities to help handle heavy call volume in the tech support department.

With tech support outsourcing, the outsource company handles the hiring and training and are responsible for making sure your customers are handled properly. If your company needs more agents on a specific shift or has fluctuating needs, it is up to the outsourcing agency to handle the scheduling. You only pay for the work the agents handle for your company.

Your customers will receive benefits as well. The outsource company is an expert in its field and it will be able to offer a variety of services, many of which you may not be able to afford in-house. This offers your customers specialized services, which will increase their satisfaction and loyalty to your company.

Costs of Outsourcing

Outsourcing isn’t something you can’t afford; it is a process your company can’t afford to live without. The money that your company will save far outweighs the costs. In addition to the reduction in labor costs, you will also save on equipment costs, infrastructure, and supplies. Your company will be more efficient and can leverage your human resources better. Companies who utilize BPO have saved as much as 40% in labor costs and an increase in productivity.

What Should You Outsource?

That is a question only you can answer. The best way to start searching for an answer to this question is to analyze all of your business processes. Which ones seem to cost the most money and take the most time with the least benefit?

Once you have a list of these processes then look at how they could be handled if they were outsourced. Would outsourcing payroll offer your accounting department more time to handle accounts receivable? If you had a third party company handle your marketing would this give your sales company more time to convert leads to customers? Review each process carefully and look at the advantages and disadvantages of outsourcing.

For many of your day-to-day business activities, BPO is the obvious choice. It will streamline your organization, increase efficiency and offer your customers access to expert services. If your small business is struggling to maintain its competitive advantage, then you should look into the benefits of outsourcing.