Business process outsourcing became a popular way for companies to reduce operating costs and improve process efficiency. Around 80% of companies today outsource business processes. These include small and budding startups to large corporations and members of the Fortune 500 companies. For an HR recruitment specialist, business process outsourcing is the modern way of running a successful business. By hiring an outside contractor to perform non-essential tasks, the company’s in-house team can better focus on essential responsibilities to increase productivity. As such, here are 5 ways to effectively outsource business processes.
WHY DO COMPANIES OUTSOURCE BUSINESS PROCESSES?
Companies commonly outsource business processes because of the following benefits.
Business process outsourcing has given companies the freedom to choose low-cost labour, efficient manpower, and skilled experts.
4 WAYS TO EFFECTIVELY OUTSOURCE BUSINESS PROCESSES
Today, the best way for a company to thrive is through business process outsourcing. With the help of an HR recruitment specialist, businesses can expand their global presence and reach out to international clients. Below are 4 ways to effectively outsource business processes.
Factor the Costs of Outsourcing
The most effective way to outsource business processes is to do cost factoring. Remember that your main goal why you want to outsource is cost reduction and improve productivity. First, have a run-through on the pricing for each service offered by an external service provider. Analyse and compare if you can really save money from hiring them. Second, it is important to factor in the results you will need from outsourcing. Is the outsourced team capable of delivering quality results in a faster time frame than your in-house team? Factoring the costs of outsourcing can help companies in laying out a clear description of what services an outsourced team needs to achieve.
Involve the Management Team
An effective business process outsourcing includes the company’s management team in the decision-making process. The executive team is the best point person when it comes to the knowledge of company culture. Their direct involvement in the decision-making processes of an outsourced team can put everything in the right direction. The external team will be able to handle the tasks they are expected to perform through the guidance of senior managers from the company that is outsourcing them. It is also a means to create successful relationships with external services partners.
Pre-define Your Outsourcing Goals
It will be best to lay down the company goals before hiring a BPO. Map both the company’s short-term and long-term goals. From the list, you can decide if you need to outsource business processes. The list will also serve as a guide of what task you will need to outsource and what targets your outsourced team will need to hit. As such, you will be in a better position to find the BPO team that fits your needs.
Never Forego Quality
To effectively outsource a company’s business processes, quality should be promoted at all times. This means constant monitoring of the external vendors’ workflow. The keys are monthly audits, quarterly performance assessments, and continuous communication flow. Just like an in-house team, it is very important to closely monitor your outsourced team to lead them in the right direction. It also keeps them aware to prioritise the quality service that your company is expecting.