With the ever-expanding reach of new technologies and the availability and accessibility of the internet, businesses are faced with more rapid changes in everything from business processes to consumer behavior. Employees are often forced to remove their focus from their core functions in order to tackle and maintain their understanding of these new advancements which stalls growth and productivity.
Business Process Outsourcing (BPO) has become increasingly more common practice, popular, and it offers more benefits than simply adding manpower to a company.
The Outsourced Relationship
With so many business and personal relationships being built in an online-only capacity, companies are more willing to work with non-local vendors. This creates an opportunity to find an outsource provider who meets specific needs.
Outsourcing offers access to greater resources than a company can afford to have such as an in-house operations team for invoice/statement printing and mailing and developing an electronic bill presentment and payment (EBPP) solution. Although some may fear that outsourcing reduces accountability, with its growing popularity, outsource providers actually offer a more streamlined process and focus on any holes that may not have been caught if the process had been done in-house.
Although much of the print and mail process will be on the vendor’s plate, unlike a one-off outsourced project, an ongoing process is truly a relationship that requires communication. As people feel more comfortable working remotely, an online B2B relationship has become easier to manage with the use of everything from emails to online portals, where companies can discuss and collaborate on invoice and statement presentment. Streamlining the process may take a little time but giving clear and direct expectations will ensure the process will run smoothly as time goes on and will require less and less time on the company’s part.
What to Outsource
Almost anything can be outsourced today but that doesn’t mean it should. The first step is identifying core competencies and developing these factors before looking to outsource any part of a company’s business; farming out any part of the core competencies would be a mistake. The focus should be on outsourcing any peripheral process, such as printing and mailing of invoices and statements.
Costs and Benefits
By using an outsourced provider, companies can maximize their budget and develop better resources and products. Depending on the size and skills of a company, outsourced billing is more cost-effective than implementing an in-house team when you consider the following: the billing department, software and hardware, and implementation costs. These can all be greatly reduced when you utilize an outsourced provider as an extension to your own business. Their resources offer faster set-up and execution as well as flexibility with changing technologies and business conditions.
Businesses are also more aware that a campaign’s success is not only based on creativity but demographic and geographic knowledge, timeliness, and progress tracking. By using the resources and skills of an outsourced provider, marketing campaigns can be well orchestrated and implemented more effectively through data collection and lifecycle marketing.