5 Reasons Your Business Needs Business Process Outsourcing (BPO)
Summary: Business process outsourcing (BPO) helps businesses reclaim their time and money by lowering costs, increasing efficiency, allowing employees to focus on their strengths and what matters most to the business, all the while gaining access to the benefits of the latest and greatest technologies and seasoned experts.
Business process outsourcing (BPO) is the act of utilizing outside contractors and companies for operational tasks, usually within the realm of HR, contract management, payment processing, data entry, and other relevant to-do’s to meet everyday business needs. Small and enterprise-level businesses alike hire BPO services as a method of saving time and money in order to blaze ahead of their competition. But what can a BPO really offer your business that can’t be done in-house? Below are five reasons your business needs a BPO service.
Lower Your Costs
One of the most prominent factors that first attracts savvy business leaders to the idea of business process outsourcing is cost savings for the company. It is a sensible path of thought to follow, because BPOs are a wise investment that are decreasing in cost and increasing in availability to businesses of all sizes. Especially in the modern age where businesses are becoming less and less centralized, with many teams—even at the C-level—existing in vastly different geographical locations, it stands to reason that business processes, too, should be outsourced to the most highly-skilled and cost-effective candidates for the job, wherever they may be.
Lower Your Burden
In the same vein, hiring a BPO service lowers overhead for your business and decreases burdensome processes like extensive hiring and training. Rather than adjust for the growth of your business and concern yourself with turnover rates, employee benefits, training sessions, new tools, and similar worries as they pertain to business processes, you can simply hire a BPO service who will manage all of that legwork on their end. This is especially relevant if you have an already-large or highly-scalable business because the BPO can grow with you, and your employees will have far less weight on their shoulders as you grow together.
Sharpen Your Focus
You can’t do it all yourself, and even if you could, you shouldn’t. This is often a hard truth for business owners to come to terms with, but seasoned leaders have a knack for delegating responsibilities and using their own energy to play to their strengths. Rather than let business processes bog you down and disrupt your flow, BPO services enable you to utilize your creativity and momentum on the tasks that need you the most. For many leaders, their strengths lie in strategy and guidance, not tasks like contract management, accounting, and similar avenues of work better left for people more well-suited to their roles. Utilizing a BPO can offer major ROI if you and your employees can then utilize your time better.
Increase Efficiency and Effectiveness
Speaking of suitability for the job, hiring a BPO can give you access to the best in the industry for whatever process it is that you choose to outsource. For example, when you outsource your contract management to Premikati, you’ll gain access to world-class advice from our supply chain experts alongside decreased compliance risks and increased visibility. In order to make your business run as smoothly, efficiently, and effectively as possible, it is best to leave your priority operational tasks in the hands of highly-trained professionals who can give them full focus—this ideal scenario aligns perfectly with outsourcing those processes.
Use The Newest Technologies
On the same note as operational efficiency, you gain access to the newest technology in the fields of your choosing. As an example of this, we here at Premikati utilize SAP Ariba—a highly-advanced software solution that may be inaccessible to many businesses if they had to run it themselves due to overhead such as price, IT staffing, and training necessities. However, when you outsource your procurement contract management, you gain access to the insights available from such a tool with none of the risk, because our highly-trained professionals can lead the way.
Do you want to learn more about how to optimize your procurement processes through contract management? Check out our post here.
Premikati is a management consulting firm that is specifically tailored to procurement and supply chain. We help our clients, both buyers and sellers, with all facets of procurement strategy. Learn more about us here.