Benefits Of BPO
The process of employing the services of some other company for handling business activities for the main company is known as Business Process Outsourcing. In earlier days BPO involved outsourcing of processes like payroll. Gradually companies began to realize its benefits and further included employee benefits management and many more. Now it includes numerous functions which are considered as non-core functions according to the main business strategy of the company. Presently, many organizations are involved in the outsourcing of human resources (HR) functions, financial and administration processes, accounting, payroll, and customer service activities.
1.Helps to improve productivity.
Outsourcing many of the services like payroll and HR function gives corporate executives enough time from their day-to-day responsibilities of process management to more important tasks. In earlier days executives used to spend eighty percent of their office time in managing details and just 20 percent in formulating strategies. With the increase in outsourcing of processes there is enough time available for formulating strategies, exploring new areas for earning revenues, and focusing on their customers. This improves the overall productivity of the organization.
2.Cost savings for the company.
The most important benefit of outsourcing is cost saving for the organization. The companies which outsource certain jobs have access to the most excellent talent in that particular field. These expert services are available at very low salaries and thus results in cost savings for the company.
3.Helps to improve the HR function.
Another advantage of outsourcing the business processes is an improvement in the HR function. The market of HR BPO has experienced considerable growth in the past years and is currently set for a rapid expansion. This is because gradually more and more companies are outsourcing their transactions and processes for creating a strategic HR function. This also reduces the overall cost incurred in managing the HR function of any organization.
4.Helps to focus on core skills and abilities.
It helps the companies to focus on their core competencies. The chief factor responsible for the growth in worldwide BPO market is because of more and more companies focusing on their core competencies. Most of them are now reviewing their internal operations to completely understand their true skills and abilities.
5.Outsourcing increases capabilities
Outsourcing increases the capabilities of employees as well as the companies. Employees have enough time and energy to do things efficiently and develop their skills and abilities. They are able to deliver innovative services and products to customers.
When companies outsource their services they get services form skilled employees all over the world.
With so many benefits of outsourcing for employees, organizations and industry, it is wise to outsource some of the non core functions of an organization.