Are You Outsourcing the Right Business Processes?
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Back office outsourcing is an effective measure to handle increasing in-house workload. Ensure that you are outsourcing the right processes.
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The outsourcing trend is increasing each year with more businesses recognizing it as a valuable business partnership. As a business grows, back office processes become more complex and comprehensive, and in-house staff may find these too challenging to handle in a timely manner. This can adversely affect the customer experience, operational workflow and productivity. So as the administrative work increases, businesses can adopt back office outsourcing as an effective measure to handle the increasing workload. It refers to the process of delegating a company’s back office functions to a third-party provider which ensures sustainable operation of the business and helps to cut down the expenditure related to acquiring more office space and the cost of hiring, training and retaining employees. An overall assessment to identify which functions to outsource is important to avoid unnecessary expenses. Knowing when to outsource and what to outsource allows business leaders to make an informed decision that can bring the best results for the company. While outsourcing is beneficial in many ways, it should be done right. Here are some tips to identify whether your business is outsourcing right. •
The first and foremost factor to check is whether outsourcing is costing you too much money. If you find that your profits are falling, it could be an outsourcing issue. If it is, consider cutting down on the outsourced tasks.
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Choosing the right functions to outsource is important. Outsource only those functions that your company lacks talent in. For example, if your company has a strong marketing team and lacks in reliable back office workers, then you must consider outsourcing back office functions.
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Consider your return on investment. Outsourcing should bring you good return on investment. If it doesn’t, it is not a worthwhile option. Review your accounting reports to understand the inflow of money and how it is being spent.
That said, some of the common back office functions that can be outsourced are: ✓ Human resource management: BPO companies provide end-to-end solutions for payroll, tax processing, employee benefit and management etc ✓ Data entry and management with Big Data Analytics: This is a recent trend that involves collecting data from various sources and converting it into structured data. It is then
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analyzed to make informed decisions. Data analytics requires skilled professionals, advanced technology and software processes. ✓ Accounting and book keeping: Every business must have an accounting system that records accounts payable, accounts receivable, delayed or deferred payments, and updates completed payments. Outsourcing back office functions is an effective strategy that helps businesses save cost and reduce in-house workload. But outsourcing should be done right if you are to experience the benefits it offers. Consider the above factors and outsource the right functions to the right service provider. This will ensure improved efficiency and productivity and help with business growth.
www.managedoutsource.com
(800) 670 2809