How Back Office Outsourcing Can Help Your Business to Grow?
As businesses grow, they resort to back office outsourcing to improve productivity and efficiency. It also provides the freedom for the business to focus more on other key functions that helps to drive revenue and growth.
(800) 670 2809
Managed Outsource Solutions 8596 E. 101st Street, Suite H Tulsa, OK 74133
info@managedoutsource.com
www.managedoutsource.com
Time and productivity are two important factors for any business. The more time you have to spend on core business activities, the more productivity you have. Thus time management becomes a very important consideration. Back office outsourcing is a good strategy when you are looking to save valuable time and improve productivity and efficiency. It allows you to focus more on other key business functions that helps to drive revenue and growth. Business is not just about improving sales and earning profit, it also involves various other tasks like HR, administrative tasks etc that keep the business operations running. As a business expands, it becomes challenging for business managers and employees to keep pace with the fast growing business functions. Business owners must realize that everything cannot be done in-house, and an important part of good time management is delegating. They can choose to outsource back office functions to professional third party services. It helps to cut down operational costs, and also ensures innovation and efficiency in all business operations. For many medium to small businesses, money is a hindrance when they seek assistance. Many believe that outsourcing is an expensive affair and they don’t want to be in debt. Vanessa McGovern, executive vice president, business development and strategic partnership, for the Global Institute for Travel Entrepreneurs, advises that businesses should see the expenses coming through the eyes of a business owner investing in growth
rather
than
like
an
employee
(as
mentioned
in
an
article
on
http://www.travelmarketreport.com.)Businesses outsourcing various tasks can minimize operational cost. It brings cost savings on hiring and training. It also prevents the need for setting up an in-house unit which involves purchase of advanced technology and software. However, there is a payment required for subcontracted jobs but this cost is not much and it can be recuperated with quality output. Outsourcing helps small business to gain a competitive edge over huge MNCs. What to Outsource Business operations include various tasks like payroll processing, administrative tasks and other activities. So it is important to decide which tasks can be outsourced. However, before outsourcing businesses must understand the best use of their skillset, and identify their strengths and passions. Processes they are strong in can be maintained in-house, and those the team is weak in can be outsourced for the best results. What business activities can be outsourced? •
Accounting and book keeping: All managers may not be good with numbers and moreover it is a very time-consuming task. So outsourcing it to a skilled third party helps to keep you updated about all financial data that is crucial for the
www.managedoutsource.com
(800) 670 2809
business. When these activities are entrusted with a highly expert agency that understands accounting best practices, your job becomes easier. Moreover, a reputable BPO company can also warrant greater data security than most small businesses can ensure on their own. •
Payroll processing: Payroll processing is not an easy job; it is highly complex and has many regulations related to federal, state and local tax laws. This is prone to a number of errors that can cost the business. So, outsourcing payroll processing to a professional third party would ensure that your business stays on top of all changing legislations and is compliant with regulations.
•
Employee benefits management: Many small businesses are utilizing the service of a PEO (Professional Employer Organization) to take care of employee benefits management and to control insurance costs.
•
Administrative tasks: Businesses have many administrative tasks like scheduling appointments, email reminders and responses, invoicing, and travel and accommodation arrangements among many others. By outsourcing these tasks to a reliable third party you can save a lot of time that can be used for other productive purposes.
From 2012 to 2016, the global business process outsourcing industry increased at a compound annual growth rate of 4.4 percent to reach revenue of $140.3 billion in 2016. This trend is expected to rise in the coming years because global outsourcing service providers are expected to utilize advanced technological innovations to overcome market challenges, and enhance products and services with less operating costs. To consider an outsourcing success story, Whatsapp is a great example. In 2012, the company had only 30 full-time and 5 part-time employees in their small Mountain View office. With only a small starting capital, they had to keep operation costs down. To build and launch the product, the company hired offshore developers from Russia as their technical team. Most of the in-house employees performed customer support and operations while development was handled offshore. Now, Whatsapp is one of the most popular chat apps worldwide and had over 50 million downloads within just 3 years after its launch, and in 2014 the company was sold to Facebook for $19 billion. Strategic outsourcing helps to improve the productivity and efficiency of a firm and helps control costs. So, if you are planning to outsource your back office functions make sure to choose a professional business process outsourcing service to ensure a seamless workflow.
www.managedoutsource.com
(800) 670 2809