Outsourcing services, or BPO, is a business practice in which an organization hires another company to perform a task (or, a process) that is necessary for its own business to operate successfully.
BPO has its roots in the processing industry, with manufacturers hiring other companies to handle specific processes, such as parts of their supply chains that were not related to the core competencies needed to achieve their final products.
However, organizations in other industries have adopted the practice over the years. Now, the use of BPO has expanded so much that organizations of all kinds – for-profit businesses, non-profit organizations, and even offices and government agencies – contract with BPO service providers to carry out numerous processes.
Organizations can also outsource specific functions (ie, payroll, invoice processing, etc.) or outsource an entire functional area (ie human resources or financial-accounting department).
Organizations are committed to outsourcing business processes, as they are expected to benefit from the arrangement. These benefits include:
- Financial benefits: Organizations often find that by outsourcing a provider they can perform a business process at lower costs than if they allocate internally the resources needed to perform the same function or process.
- Flexibility: BPO contracts can allow organizations greater flexibility to adjust the way the outsourced business process ends, allowing them to react better to changing market dynamics.
- Competitive advantage: BPO allows organizations to outsource those processes that are not essential to their business or mission, thus allowing organizations to focus their resources more on the operations that distinguish them on the market.
- Better quality and performance: Because the main activity of BPO providers performs the specific processes on which they are employed, in theory, they are able to focus on delivering these processes at the highest levels, often with precision, efficiency and speed.
What we can do for you:
- Automated processing of supplier invoices (Accounts Payable)
- Credit management and Accounts Receivable
- Controlling: Reporting and budgeting
- Electronic archive and document management.