Jenny has outsourced her payroll operations to a payroll company but has no intention of outsourcing any of her customer service tasks even though they can be done cheaper by call center workers in the Philippines. On the other hand Jack outsources his technical division but wouldn’t ever consider outsourcing labor because he doesn’t believe he could get the expertise of his current workers elsewhere. So how do you know if business process outsourcing is right for your small business?
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Outsourcing isn’t for all small businesses but it’s certainly the right option for many. For a business to be successful there must be profits. The profit is a result of revenue minus expenses, and many times it is much cheaper to participate in business process outsourcing than it is to have the tasks done internally by your own employees.
Let’s look at a few of the most common areas of business process outsourcing.
Customer Service
India and the Philippines are where the majority of customer service outsourcing goes. Their companies can offer these services for a fraction of the in-house cost. Whether this option is right for you has a lot to do with what your market is and what you believe the role of customer service is to your business.
Payroll Services
Payroll is one of those behind the scenes tasks that needs to be done but it doesn’t really matter by whom as long as they have the skill to do payroll. As a result this is one task that for most small businesses outsourcing makes sense, since outsourcing is usually cheaper than having your own in-house payroll department.
Manufacturing
If we’re being honest here, manufacturing in the western world is becoming almost as extinct as the dinosaur. This is especially true for common goods. China is the largest provider when it comes to manufacturing. For most small businesses outsourcing manufacturing needs is a given and the right choice for reducing their cost of goods.
The business processing outsourcing industry is evolving daily as the demands placed on it grow and change. Many of these companies are constantly repositioning themselves and always staying highly competitive. India is home to most of the business processing outsourcing and the highly competitive nature means that your small business can likely benefit from some of the services offered.
Any opportunity to streamline your business processes and reduce your expenses should be looked at. The following are just a few companies that offer these services. Outsourcing also allows you to focus on the heat of your business leaving non-core functionality to a business process outsourcing company.
Using business process outsourcing means you can focus and free your resources for what’s key to your business leaving you to grow your business and take your business to the next level. If your small business had to have a human resource department, a payroll department, a customer service department, the costs would quickly grow resulting in lower profits. In some cases it could result in the bankrupting of the business. Whereas business process outsourcing can have the complete opposite effect increasing your profit and your success.
