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What is business process outsourcing?

The concept of “outsourcing” is now popular in a wide variety of industries, because it opens up great opportunities for business development. Outsourcing is the transfer of the solution of non-core tasks of the company into the hands of third-party specialists. Most often it is about the management of finance, personnel, customers and information technology.

Read more about the business process outsourcing service in the material.

What is the outsourcing of business processes?

Almost any non-core process, the company can fully or partially transfer to a third-party specialized organization. Let’s see what business processes should be outsourced:

Personnel Management. For any company, personnel matters are routine: searching and hiring employees, calculations and reporting. At the same time, keeping on staff even several HR specialists can be an expensive pleasure. In this case, a certain set of functions, such as competition and the selection of new specialists, staff leasing, payroll and compensation, tax reporting, is better to transfer to a specialized personnel agency. All parties benefit from this interaction, both in time and in money.

Interaction with customers. One of the most striking examples of outsourcing business processes is the transfer of processing phone calls to external resources. Today, both classic call centers and automated programs working according to the cold call method are used for this. Such a service is in great demand in both commercial and government organizations, as it has a good price-performance ratio.

Accounting. An accounting outsourcing company is capable of performing the whole range of accounting operations, however, here the key point for the customer is the confidentiality of financial data. To solve this problem, automated solutions with a high level of protection are usually offered.

What is business process outsourcing

Information Technology. Outsourcing IT tasks in a short time has become popular all over the world. Moreover, we are talking about ordinary tasks, such as finalizing the internal system, as well as rather complex and highly specialized projects that require close interaction with regular employees.

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IT outsourcing

Suppose a company has a large turnover of advance reporting, it becomes difficult to manage this business process, which brings extra time and money. It will not work correctly to optimize and further automate this process without involving relevant specialists. To implement such an IT project, you will need a professional team, sophisticated equipment, service and support resources. Naturally, it is much more profitable for a company to find an IT provider that specializes in such projects, and which already has all the necessary resources. Simply put, outsource this task, and after the project is launched, the company can remain supported by this IT provider without wasting time and effort on attracting and training full-time employees.

As an example of IT outsourcing, let’s take the Hamilton Advance Report application , with which companies optimize the process of advance reporting processing from filling out a document by an accountable employee to signing this document with an electronic digital signature manager.

To implement, configure and support this application, a full-fledged team of specialists stands out. The customer is only required to determine the employee responsible for the project for his part – more on this in the material “Organization of the project implementation: the role of the project manager on the client side” .

Pros and Cons of Outsourcing

What is business process outsourcing

Business process outsourcing services are in demand among companies of various sizes – from small organizations of up to 5 employees to large corporate networks. This is because this approach has an important advantage – it allows you to save company resources and at the same time maintain high quality of tasks:

  • no need to keep on the balance of the “excess” economist, accountant, developer and monitor its workload;
  • no need to spend staff time on non-core functions or training;
  • no need to spend resources on the purchase and maintenance of any equipment.

All tasks are performed by an outsourcer who already has a team of specialists in the right field, as well as all the necessary resources. In addition, the deadlines for the implementation of tasks and control over their implementation are clearly planned, which allows the customer to work with the supplier on transparent and optimal conditions for him.

Naturally, any approach has its own difficulties, but in this case they are easily regulated by modern tools.

For example, depending on which particular business processes are transferred to a third-party organization for solution, the risk of disclosing classified information – trade secrets, financial information, etc. may increase. Today, outsourcers have learned to clearly state the security clause in the contract and work with technologies to protect the data of their customers. In this case, the customer needs to pay special attention to this moment in the contract before signing it.

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It is also worth considering the fact that outsourcing business processes requires close interaction with the contractor, and always in the long term. Therefore, the customer must choose a supplier that meets absolutely all his requirements, and also, to get maximum efficiency, be ready to work closely with him.

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