The MacNair Travel Leadership Blog

4 Reasons Why We Recommend Utilizing Business Process Outsourcing

Posted by Mike MacNair on Feb 23, 2017 12:00:00 PM

4 Reasons Why We Recommend Utilizing Business Process OutsourcingOutsourcing is common with businesses, both small and large. What makes Business Process Outsourcing (BPO) different from typical outsourcing is that an entire non-core business process, rather than separate tasks, is outsourced to a third-party service provider – putting the provider in charge of an entire functional area of the business.

Typically, BPO is used as a cost-saving measure for non-critical processes that a company must perform, but do not depend upon to maintain their position in the marketplace. Some common outsourced business processes include:

  • Front office: customer support, lead generation and telephone call centers.
  • Back office: HR, accounting and travel management.

BPO is ideally suited to organizations that do not have the financial resources to establish and maintain entire in-house departments devoted to these non-core processes. While every solution has its own set of benefits and disadvantages, here are 4 key benefits to choosing a business process outsourcing provider.

1. Improve Overall Productivity

BPO allows executives to concentrate on core business areas. Executives can often get bogged down in managing or reconciling non-core business issues. BPO saves time allowing leadership to explore new revenue areas, accelerate other projects and focus on their customers.

BPO helps managers to focus less on time-consuming, non-core activities and more on factors that enhance business value. Outsourcing frees up internal business resources by delegating non-core activities to experienced 3rd party service providers. Internal resources can be then allocated to critical processes, all in the effort to improve business efficiency.

2. Reduce Costs

All businesses are concerned about their bottom line. Keeping expenses under control is vital to the growth of any company. When you outsource costly functions to subject matter experts, cost reduction can be realized through improving and reengineering processes, as well as leveraging the service provider’s technology and equipment. Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner assumes the responsibility of the business processes and any infrastructure requirements. These considerations can help to keep administrative and equipment costs to a minimum.

3. More Control

BPO can help improve standardization of processes, assist business leaders to meet compliance requirements and provide better analytics. Standardization, along with comprehensive and accurate reporting offers corporate executives the information they need to effectively manage their respective business area.

4. Improve Quality

Because BPO companies typically specialize in a particular businesses process, they become experts in their field. This also means, to stay competitive, they must use the latest tools and technologies, as they continue to serve clients with varying requirements.  Outsourcing to top-notch BPO providers means you benefit from their technical expertise, and the business processes are completed quickly and competently.

BPO is different than what some may think. It is not a result of having too many people, and taking away a piece of the business to simply reduce overhead. It is a well-thought-out, strategic decision to move important business functions into the hands of experts, so your employees can focus on core business requirements. Outsourcing helps companies maintain lower costs, exercise more control, and gain visibility into key areas of their business.

One of our customers once told us that travel management is like accounting: “I can do our corporate tax return on my own, but why would I? My accountant saves me the time, money and – more importantly – his skill and expertise allow me to concentrate on my area of expertise. I apply the same reasoning when I choose a professional travel management firm.”

Outsourcing your travel program to experts will free up time so that you can focus on other key core business areas. But like anything else, you must understand the pros and cons of BPO so that you can avoid any pitfalls and position your company for success.

Download our white paper, 5 Key Reasons that Outsourcing Fails and What to Do About It, and learn how BPO can help you.

5 Key Reasons Outsourcing Fails and What to Do About it

Topics: business process outsourcing, Outsourcing