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Topics: Outsourcing

Business process outsourcing (BPO) is something of a trend among companies across a number of different industries. Much like outsourcing in general, BPO is supposed to reduce operating costs and increase efficiencies. 

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The question most people ask is, can it really do that? The answer is yes! Here’s how BPO can reduce your operating costs.

Time Is Money

Someone once said, “Time is money,” and they weren’t wrong. Most businesses would agree with the old saying. When it comes to business process outsourcing, time is often the number-one money-saver. 

How does BPO save time? Simply put, you’re getting a number of people who are experts at what they do. While data entry may not be the most taxing task, it's something you can develop a knack for. Some people, however, may not have such an easy time with this kind of task—and these people may be wasting time when you ask them to complete data entry. In short, it takes them longer than it needs to. 

Business process outsourcing also encompasses a range of tasks, including accounting processes, HR functions, and even customer service. These are all time-consuming duties with multiple aspects to be managed—which means you’re saving even more time.

Less Time, Lower Cost

Essentially, what happens in BPO is your provider places a number of people with a specialized skill set on the job, and they get things done faster. They spend less time overall, which in turn reduces your costs. 

The cost-savings become even more apparent when there’s a difference in the seniority of the people completing the task. It costs you more—a lot more—to have your VP of sales managing payroll than it does to have an outsourced payroll expert.

Increasing Accuracy

Another advantage of BPO is increased accuracy. Since the people completing any given task are usually experts at those tasks, they don’t make the same kinds of mistakes as a less experienced in-house employee might. While errors can and still do happen, they’re often few and far between.

Fixing errors can be costly and time-consuming, so increasing accuracy is in your best interests when it comes to almost any job you may need to complete.

Better Equipment

Any third-party provider you decide to join forces with should be using the latest technology to complete jobs in a timely manner. Just as you’re assigning people with a specialized skill set and expertise, so too are those people using the best tools to support their work.

On your own, you may not have access to these tools, resulting in a less efficient process. Older tools may actually make you do more work—or at least slow your team down. But the price of new technology often shutters people out of the market, even if it means cost savings in the long run. Business process outsourcing can solve the conundrum: You get access to the latest tech without breaking the bank.

High Efficiency

When you combine all of these factors—expert agents working with the latest technology, making fewer errors and spending less time on a job—you end up with greater efficiency. And a more efficient process saves you money, almost by definition.

Think about it: Your partner provider has perfected whichever service they offer. They do it frequently, for multiple clients; that frequency has allowed them to develop the best possible process to get the most accurate results and the fastest turnarounds.

With that in mind, it’s easy to see how business process outsourcing will reduce your operating costs.


David Rae

David Rae

David started with Bill Gosling Outsourcing in 1983. As CEO, he sets the future direction of the organization, develops services that help with clients’ pain, while ensuring that the strategic direction is aligned to the shareholders’ requirements. During his tenure, the company has expanded internationally, opening offices in the United States and the Philippines. Also known as Razor, David is a drummer extraordinaire and his favorite bands include Blue Rodeo, Lighthouse, Supertramp, The Eagles, Fleetwood Mac, and The Guess Who.

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