Business Process Outsourcing is a work methodology in which companies commission service vendors with their core or non-core operations and business functions. Any function or work that can be outsourced to outsourcing companies. These processes, works or jobs include recruitment processes, payroll, medical billing & coding, customer support services, software development and support etc. Moreover, there is a whole bunch of IT & IT-enabled services that are usually getting outsourced, as part of the cost-cutting practice. From idea generation of a product or service to sales and marketing, there are numerous benefits of opting for outsourcing a Business Process. It is a highly practical way to do business in the modern world where globalization has vastly increased communication and reach.
Why docompanies choose to outsource work?
Less Manpower – When an organization outsources, it pays the vendor for taking care of a certain business process or function. This reduces the burden of having a large amount of staff. This makes companies save on money by not spending on the training and perks of additional employees. The amount paid to the vendor will always be less than the combined cost of training, perks, salary, etc. to in house employees.
Less investment in infrastructure & technology – Outsourcing eliminates the need to invest in employing additional infrastructure and in the deployment of technology for the non-core work. It allows companies to invest the resources in other domains that can contribute to greater revenue generation.
Access to Expertise – When a company hires employees, it may restrict itself to a set number of talented people. However, it is found that when a process or function is outsourced, companies get to access a larger talent pool and expertise of the domain from a different set of geographies.
Low Cost of operation – According to Forbes, companies in the USA outsourced approx. 300,000 jobs each year. The company can reduce the cost of operations by getting the job done at a lower cost. That’s why companies choose to outsource work.
Increased Efficiency – Outsourcing companies like Antora Solutions bring years of experience in managing business functions. We can do the job better as we have in-depth knowledge and expertise in specific domains. This results in increased efficiency in performing the job.
Prompt & better services – If an organization lands with the right outsourcing partner like Antora, managers would experience that their customers are well assisted at a fast pace. Outsourcing agencies are experts and performing certain functions only on behalf of others. Hence, with a single area of work in focus at a time, the agency is always in a better position to provide prompt response to customers.
Develop competitive advantage – When the non-core work gets outsourced, the company can focus on the job in hand. By investing more in core functions of organizations, managers can help companies to develop an advantage over competitors and take the business to the next level.