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How Business Process Outsourcing Improves Productivity

The ability to reduce waste and streamline business processes will keep forward-thinking companies alive as the economy rebuilds itself. Whether a large corporation or a small-to-medium business, business process outsourcing (BPO) of critical functions in document intensive areas such as Accounts Payable, Human Resources or Customer Service can quickly improve productivity and reduce costs. Companies of all sizes are finding themselves able to focus on their core business and not on their business processes with a trusted BPO partner whose expertise is in:

  • Document Scanning Services
  • Mailroom Services
  • E-forms
  • Workflow Automation
  • Document Management Systems

Look to a BPO partner to perform tasks that are productivity bottlenecks at your organization. Those logjams can distract from your company’s core business goals while requiring a disproportionate percentage of internal resources. That’s the very reason business process outsourcing delivers a quick ROI and can help strengthen your company’s competitive position.

Working with a BPO Provider

Identify with the help of your BPO partner, the critical document-intensive business process that are draining your productivity. Typical of most businesses, accounts payable processes tend to be inefficient, costly and time consuming. Specifically; opening and distribution of mail, routing invoices for approval, invoice processing, filing of processed invoices, document retrieval and audit preparation top the list.

The right BPO partner will propose and implement solutions that can:

  • Lower invoice processing costs by 91%
  • Shorten processing times by 46%
  • Result in 12% fewer late payments
  • Require 30% less time to respond to inquiries.

Here is an example of how outsourcing accounts payable processes to a document management specialist can help companies achieve these goals.

  1. Provide mailroom services to include having all invoices sent to their facility, where it is opened, sorted, scanned, indexed and routed digitally to the appropriate client staff using workflow automation. The digitized images are simultaneously uploaded to an off-site, secure, web-based document management system for storage and 24×7 retrieval capabilities.
  2. Implement workflow automation to streamline AP business processes by automatically distributing and passing digitized invoices, information or tasks from one participant to another for action according to existing business rules. Documents are easily entered into workflow management software via scanning, importing or by creating an e-form that kicks off an automated routing, approval and tracking process.
  3. Create e-forms to replace purchasing documents, allowing staff to access, complete and sign the purchase orders online and route them automatically to the appropriate internal departments and vendors. This solution not only saves paper forms and the storage space they require, it improves productivity in the accounts payable department and fits nicely into the automated workflow for invoice approval. Completed e-forms are also uploaded into the off-site document management system for storage and retrieval.
  4. Implement an electronic content management solution that is integrated with a company’s financial software application, such as Oracle PeopleSoft, Intuit QuickBooks or SAP Business Suite. This allows users, and auditors, to access documents related to an invoice directly from within the business application software.
  5. Provide document scanning and automated indexing of existing files into the off-site, secure, web-based document management system to eliminate the need for additional file storage space and free current storage space for office expansion.

Finding the Right BPO Provider Given the financial restrictions most companies are experiencing, finding ways to reduce waste and improve productivity is no longer optional. If your company is considering outsourcing specific document intensive business processes, it’s important to find a partner whose services will actually result in savings. A skilled provider will employ comprehensive project management and multiple vendor partnerships to craft a solution that’s unique to the customer and deployed quickly and seamlessly. The right BPO partner offers services for handling high volume projects and backlogs as well as your company’s daily work, allowing you the flexibility to use BPO services every day or only when necessary. They will also be equipped to provide on-site or off-site services. Whether your company is turning to business process outsourcing to improve productivity, enhance compliance efforts or go green, the key is finding an experienced BPO partner who understands your business. Using these key qualifications as a guide, begin to investigate the BPO vendors in your area. Doing so can be the first step to a leaner operation and a stronger bottom line. *Source: IOMA

Streamline Your Organization’s Business Processes by Outsourcing

Outsourcing has come to stay for all times to come! A smart and cost-effective way to streamline your organization’s business process is to outsource it to a reliable business process outsourcing company. Customized outsourcing solutions offered by well established outsourcing companies can simplify your business operations, thereby ensuring increased productivity and revenue.

Outsourcing Services for Various Business Sectors

Established business process outsourcing services can make substantial increase in your productivity by offering wide range of quality outsourcing solutions in almost all business sectors. Most common sectors in which their services are available include:

  • Medical outsourcing: Healthcare providers and medical professionals can benefit from effective medical transcription facilities, accurate billing and coding services, patient scheduling, healthcare staffing and data entry solutions for medical files, records and other documents. This helps them provide best healthcare services. Reliable BPO services provide 100% HIPAA compliant medical outsourcing solutions that assure clients of secured patient records.
  • Legal process outsourcing: State-of-the-art legal outsourcing services such as legal transcription, coding, legal research, documentation, litigation support, and immigration paperwork can help attorneys, lawyers and business enterprises to provide their clients with most customized legal solutions.
  • Back office data entry outsourcing: Storing your business data is easy and safe now with the back office solutions offered by reliable BPO services. They offer services such as data management and conversion, data entry, document staffing, SEO, website design, web based EMR and more.

Benefits of Outsourcing Business Processes

Benefits of engaging professional outsourcing services include:

  • Cost saving: The major advantage of outsourcing business process tasks is saving costs on human resource utilization. Recruiting right staff, and training and retaining them are expensive tasks for any business. By outsourcing these tasks, business firms can be free from all these responsibilities and can concentrate on their core activities. The BPO Company will recruit or hire quality employees at lower costs. The outsourcing company can also save on infrastructure costs. Services offered by BPO firms ensure a cost reduction of 30 to 40%.
  • Quality services: Outsourcing enables you avail services of experienced transcriptionists, professional staff lawyers, expert data entry operators, and other professionals. Offshore outsource firms very often make three level quality checks by QA professionals to ensure error-free results.
  • Operational scalability: A company can deploy the available staff to attend to essential operations focusing on its core business activities.
  • Services across time zones: Outsourcing work to a provider in a different time zone gives a company much freedom and ease in its office hours.

How to Find the Right Outsourcing Partner?

In order to attain all these benefits and services, it is very crucial to choose the right outsourcing partner. Some useful tips for choosing the right outsourcing firm:

  • Know your needs in advance
  • Search the Web thoroughly to find a BPO Company that suits your business.
  • Do complete background check including reputation
  • Consider their experience
  • Verify the firm’s credentials

How Can Business Process Outsourcing and Manufacturing Help Your Business?

The practice of using a third party which is contracted to perform specialized and specific processes on a companies behalf is called Business Process Outsourcing. Earlier outsourcing meant companies used outside accountants to balance the books but now outsourcing is used by many large companies and businesses on a much larger scale.

Some part of the business is outsourced and the company is able to focus on its primary purpose, whatever that may be. Also, managers have much less time and there are limited resources in the business. Managers can get help in order to set priorities as the customer service is being handled by an outsourcing vendor.

Front office and back office outsourcing are the two primary types of business process outsourcing. Advertising, marketing, customer service and technical support are included in front office outsourcing while the back processes that might be outsourced are human resources, logistics, billing and payroll. Services are also offered by some companies in job recruitment, credit analysis and collections.

Processes like claim processing at an insurance company and other processes which one may think cannot be outsourced are also being outsourced these days. Small companies which are not able to afford in-house support service can gain from outsourcing which allows for the company to have a higher level of efficiency.

One parts of Business process outsourcing is the foreign call centers that are located in different parts of the world. Although most of the companies claim that customer support is their top priority in many cases they end up with people who have little interest in the company. The main reason is that a lot of money is saved when customer service is outsourced to countries like India. Obvious scripting and accents are some of the biggest customer complaints that occur with foreign call centers.

Cost may be one of the reasons why companies utilize Business process outsourcing service but another factor is that the company does not have the expertise to deal with certain aspects of the business. Outsourcing also reduces the risk involved in business.

The risk is managed by the companies who provide outsourcing. Using Business process outsourcing in order to cut costs has made many companies face criticism especially in case of call centers. Many companies located in the United States, Europe etc are outsourcing their work to countries like India because they are able to get services at an excellent price. This is because many of these countries have low cost of living, high unemployment rates and a well educated labor pool. In 2006, India had 63% of the offshore Business process outsourcing market.

Many western workers are losing their jobs to foreigners. Although companies improve their bottom line by outsourcing they are also facing harsh criticism because of the decline in the quality of customer service. Now, Business process outsourcing is popular but due to employee and consumer backlash and restrictions from the government on taxation Business process outsourcing may become less popularity in the future.

Click the link below to see what the future holds for outsourcing in the UK. Your competitors are using these same services to gain more market share. Are You? Click the link below and read more.