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Posts Tagged ‘Outsourcing’

Many companies have already realized the many benefits of business process outsourcing (BPO). With the current global economic crisis, these benefits have become even more apparent. Time, energy and resources need to be conserved at home in the First World. It would be much cheaper to outsource many tasks to countries in the Third World, like India, China and the Philippines. This will increase productivity and efficiency while cutting down on costs. Companies that outsource business services then become more flexible and nimble.

Outsourced services include manufacturing, software development, web development, finance, accounting, human resources and customer service, among others.

With business process outsourcing, a company does not have to invest in costly assets or set up expensive work structures that will have fixed costs. It will not have to purchase expensive equipment that may have to be amortized for many years and may even become outdated and outgrown with rapid technological advances.

Outsourced business processes are paid for per service. This means a company can immediately adjust to changes that may require more or less work and pay for only exactly what is needed. This flexibility greatly enhances resource management and frees up much capital.

A company that uses business process outsourcing is also able to focus more on its own core competencies. Once a company has identified its most valuable activities for its core business, other secondary activities and processes can be outsourced. The company can then concentrate its key people’s energies and talents on what they do best.  Read more...

Many companies have already realized the many benefits of business process outsourcing (BPO). With the current global economic crisis, these benefits have become even more apparent. Time, energy and resources need to be conserved at home in the First World. It would be much cheaper to outsource many tasks to countries in the Third World, like India, China and the Philippines. This will increase productivity and efficiency while cutting down on costs. Companies that outsource business services then become more flexible and nimble.

Outsourced services include manufacturing, software development, web development, finance, accounting, human resources and customer service, among others.

With business process outsourcing, a company does not have to invest in costly assets or set up expensive work structures that will have fixed costs. It will not have to purchase expensive equipment that may have to be amortized for many years and may even become outdated and outgrown with rapid technological advances.

Outsourced business processes are paid for per service. This means a company can immediately adjust to changes that may require more or less work and pay for only exactly what is needed. This flexibility greatly enhances resource management and frees up much capital.

A company that uses business process outsourcing is also able to focus more on its own core competencies. Once a company has identified its most valuable activities for its core business, other secondary activities and processes can be outsourced. The company can then concentrate its key people’s energies and talents on what they do best.  Read more...

Business process outsourcing has opened the doors of third world countries like the Philippines to global business, inspiring local talent to attain world-class credentials and eligibility. Now that the country has proven its capability at providing a highly qualified pool of human resources, companies around the globe have seen the wisdom of outsourcing in the Philippines. In fact, the Philippines is one of the top recipients of outsourced business processes worldwide.

Through business process outsourcing, companies are able to streamline their operations and lower costs. Certain work processes are sourced out at a fraction of the cost of in-house counterparts. Not only are resources saved but company management time is freed up, as well, to enable them to focus their attention to core business competencies, maximizing the company’s specialization and leveraging income and profit.

Back Office and Front Office Procedures

Business process outsourcing is divided into back office procedures and front office procedures. Back office procedures are internal functions that include, among others, human resources administration, payroll, tax compliance, purchasing and disbursement, order entry, billing and collection, and cash and investment management. Front office procedures are external functions that include, among others, customer relations, marketing and technical support. This contributes to customer satisfaction, strengthens brand loyalty and increases market share.

Front office procedures are often handled by contact centers or call centers. Contact centers provide more comprehensive services beyond voice calls. Unlike call centers, contact centers use a multi-channel contact management platform where customer interaction may also be done over the web or through email, fax and even instant messaging.  Read more...

Many small and medium-sized enterprises depend upon professionals such as accountants to ensure that their financial records are compiled correctly. But, when companies expand and need to develop or upsize their financial department many find that the costs of doing so are restrictive and that off-the-shelf financial solutions seldom suit the individual requirements of the company.

So, increasingly for SMEs and even many larger companies it is economically viable to outsource their finance department to a dedicated provider, who can provide a level of expertise in a range of fields that would be impossible to deliver themselves. In addition, enterprises are increasingly seeking to outsource other expensive and specialist functions such as IT, supply chain management and customer services.

But, starting with the most basic of functions companies require an effective accounts payable and receivable function to handle all aspects of their invoicing and payments. As companies grow they need to increasingly call on additional financial services such as risk management, collections and customer service in order to compete efficiently in their marketplace, and those services can be seamlessly bolted-on by an efficient outsourcer.

Therefore, rather than employ specialists in-house at great cost and build or buy-in sophisticated software developing systems from scratch, it is a far better solution for many to outsource their finance function.

The advantages of outsourcing financial services are many. A specialist provider can offer a modular and flexible approach to providing tailor-made solutions. Possessing experienced staff with knowledge of the latest techniques and software, they can easily grasp the requirements of an individual company and provide a cost-effective and efficient total solution.  Read more...

With the global recovery and mounting tension within the outsourcing industry, one sector that has quietly faded into the background is the financial services outsourcing  industry.  It has taken a backseat amid healthcare outsourcing troubles early this year and the ever-growing information technology outsourcing industry.

The subject of the state of the financial services outsourcing sector is still of particular interest however, and has been closely monitored by different firms such as TPI and Everest.  According to data and advisory firm, TPI, in its TPI Index reports for the 1st and 2nd quarter, they have observed a decline in the outsourcing of financial services.  Everest, offering its two cents on the topic, indicated on its report which was released on the 4th of August, that outsourcing among the BFSI or the banking, financial services, and insurance sectors have seen the highest volume of activity since 2008, and has actually had a 41% increase in transactions during the second quarter.

Outsourcing provider, Broadridge (NYSE:BR), on the other hand, says that demand does not seem to be lacking.  According to the company on the 15th of September, they are expanding their services in order to meet the demand and offer greater flexibility among financial institutions beyond securities processing and would include securities clearance and settlement, corporate actions, tax reporting, mutual funds, as well as accounts payable, treasury, risk, and compliance, similar to other outsourcing providers in the financial services market.  Read more...