Dealing with too many overhead and operational costs hurts the revenue for your business. If you’re a small company trying to grow, you might not have the resources to full-staff your company until you build more profit.
More companies have discovered the benefits of outsourcing specific business operations to maximize efficiency and reduce overhead. When it makes better financial sense to use an outsourcing solution, many companies save money and experience faster growth than when trying to fill staff positions with “in-house” employees—even if they work from home.
If any of this sounds familiar, outsourcing could be the right solution for your company! Keep reading to learn about three ways you can take advantage of this option with these business process outsourcing examples.
What is BPO (Business Process Outsourcing)?
Think of it as using freelancers for operational needs. Companies that benefit from business process outsourcing (BPO) contract a third party to perform specific, specialized processes on behalf of the company.
You might think of freelancers only as writers, designers, or consultants—and they are! However, today businesses can benefit from an industry of “freelance” services through companies that supply third-party, non-employee resources to handle many common business operations.
This practice makes top-quality talent and resources available to companies of any size without the added burden of overhead costs. Your company doesn’t pay for benefits like health insurance or paid time off. Depending on your needs, you can receive full-time services from your outsourcing provider.
Businesses pay only for the time and access to the provider and their resources. It’s an effective way to increase efficiency and productivity without sacrificing quality or increasing your overhead budget.
Where should companies start when considering the best things to outsource? Start with these three operational areas.
1. Payroll
Companies no longer need to rely on in-house full or part-time staff to tackle payroll every month. What used to be a significant line item on many overhead budgets can now become a lower expense with the right outsourcing solution.
Using a third-party solution to process payroll every month also reduces the amount of time required to complete this ongoing task. Outsourced payroll vendors have plenty of resources and technology to make payroll an efficient and accurate part of your business operations. Utilize your accounting department in more efficient ways when outsourcing payroll operations plus:
- No more delays when distributing employee paychecks
- No more mistakes when your accounting team miscalculates accrued paid time off
Your payroll process happens on time every month at a lower cost!
While most outsourced payroll solutions deliver accurate and timely results, make sure to vet your provider before allowing them access to your company’s and employees’ private financial data. Review their security protocols and work with them to provide the payroll service that meets your specific needs.
2. IT Services
Not every company has the resources to staff an IT department or purchase the equipment to run successful and secure business operations. However, today’s security risks and technology needs can’t wait for your budget to catch up to the demands of a digital age—no matter the industry you serve.
Companies are at risk without the best security solutions, protocols, staff training, and support services to manage their IT needs. However, it’s no longer necessary to bring these high-level employees on staff or create a server room full of computers to serve customers and clients while protecting data.
Common business outsourcing services include third-party managed IT services. The best solutions have the staff resources and offsite server, storage, cloud, and security solutions that best fit your needs—without the price tag that comes with setting those resources up within your company. A third-party IT vendor also provides 24/7 support where an employee might not be available after hours when needed for a network emergency.
IT needs can change as often as new security risks evolve and technology becomes smarter. If you are needing managed IT services, consider an outsourced solution to expedite your operations and security before investing in in-house solutions that can’t evolve with the demand.
3. Human Resources
Much like your payroll, many human resources functions can operate through a qualified third-party vendor. Small companies must follow the same employment laws as larger corporations. However, without the budget for on-site human resources staff, your company is at risk of violating laws and instigating a lawsuit.
With outsourced human resourcing responsibilities, your company reduces costs while maximizing your internal resources. A third-party human resources professional helps companies:
- Hire new employees
- Manage and use staff effectively
- Develop company handbooks and enforce company policies
- Follow laws that govern how your company operates legally
- Manages employee training programs
- Oversees employee discipline and termination (if necessary)
- Monitors employee compensation and benefits programs
- Handles employee onboarding processes
Human resource is a critical aspect of running a successful business. However, the person or team that manages your human resources doesn’t need to be an in-house staff position. The right outsourced solution delivers these services and oversights with the experience you need and lower cost than setting up an internal HR department.
Ensure your outsourced vendor provides the specific human resources services you need depending on your business and industry. The wrong solution can damage your success with low staff morale, inadequate employee training, bad hiring decisions, and a benefits package that isn’t competitive in your market.
Use These Business Process Outsourcing Examples to Grow Your Business
Growing your business doesn’t have to require an expensive overhead budget. Your company also shouldn’t wait until you find the ideal local hire or new employee to fill a role in IT, accounting, or human resources.
Choosing one of these business process outsourcing examples is a cost-effective way to grow the operational aspects of your business with excellent security and top talent! Expand your resources while minimizing costs and maximizing efficiencies when you choose a third-party vendor to boost your business.
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