In the past few years, business process outsourcing (BPO) have seen billions of dollars in growth. Many companies turn to outsourcing as a strategic solution that offers cost effectiveness. Outsourcing allows companies to maintain their businesses’ profits and thrive amid various economic conditions. The flexibility and the scalability that outsourcing provides are the main factors why companies of various sizes outsource their work.
Large companies and startups benefit from the ability to focus on core activities such as production and development. This is a source of stability that allows companies to survive and adapt to changes in the market and industry. Almost any task can be outsourced to service providers. Some areas can save cost and improve customer relations and business functions.
Business Process Outsourcing
A reliable and crucial tool of communication for businesses of all sizes, outsourcing this area can be a relief for any company. Maintaining a system requires significant costs, which is important as failures can negatively impact daily operations and productivity levels. Hosted email solutions provide many benefits.
Email solutions that are outsourced do not require a dedicated IT team to provide management, maintenance, and support on-site systems. With cloud technology, costs are significantly reduced as there is no need for hardware and applications.
These benefits are important for startups and large businesses as the systems can be accessed remotely. Companies no longer need to worry on platform failures.
Accounts receivable (A/R)
Small businesses and startups receive payment from customers, vendors, and suppliers typically at an average of 56 days. This imbalance in cash flow makes it difficult for companies to maximise growth. With A/R outsourcing, banks can lend against a company’s A/R. This gives companies enough capital within days instead of weeks.
Businesses are free from having to deal with customers that are slow in making payment. This is possible as the invoicing burden is given to the credit provider.
Large companies benefit most from payroll outsourcing. However, even startups should consider this approach to accommodate potential for growth. Payroll is a time-consuming activity that generates no revenue. Leaving payroll to expert service providers helps companies avoid penalties from irregularities and gives companies to focus on revenue-generating activities.