Running a
successful company means that you must find innovative ways to bolster profits and
make your business run as efficiently as possible. One effective step towards
achieving this, is to outsource many of your business operations to third-party
merchants through Business Process Outsourcing or BPO services.
Outsourcing
began in the manufacturing industry when companies began to hire outside
sources to handle the more trivial tasks that were
required to create their products. This practice was incredibly successful, and
today, we have seen outsourcing transition into business operations.
BPO is used in two different areas of work: back-office
functions (accounting, IT services, and human resources), and front-office
functions (customer support, and marketing).
BPO often
outsources non-core operations and is a viable option because it allows you to
devote more time to the most pressing matters, like customer relations and
product development, which are at the core of your business.
For many
startups, outsourcing is a must due to their limited capital and resources. For
more established companies, it is done when a third-party BPO companyis shown to do the job better, and cheaper than they could do
themselves.
Outsourcing
allows you to play the field. Without it you are limited to what is in front of
you so to speak, whereas with outsourcing, you are able to access high quality
services, without as many hang-ups.
For American
companies which are stricken by some of the highest corporate taxes in the
world, outsourcing is a way to avoid this burden. Certain services also cost
more in America than they do elsewhere. For example, an Indian software
engineer gets paid anywhere from $4,000-$23,000 per year compared to American
software engineers who get paid up to $100,000 or more per year.
By outsourcing you also save on office space and
offer flexibility to your employees, many of whom are able to telecommute. This
improves their quality of life as they are able to work from home and avoid all
of the headaches that come with commuting to and from work.
