Business Process Outsourcing – A Brief Study

Research will show that the concept of business process outsourcing began as early as 1981 when major corporations realized that back office support functions can be better managed and more cost efficient when handled by a subcontracted company with specific industry expertise.  Since then, the growth of the industry has expanded dramatically to become a standard business practice.  This has resulted in a dilution of outsourcing companies ranging from global leaders such as Xerox and Ricoh to small privately owned local businesses that service a specific metropolitan locale.

Whether you are new to the concept of outsourcing or a seasoned veteran of the practice, choosing the right partner, which is critical for the success of your business, can be a challenge.  Engaging in discussions with your internal team about your business goals and expectations can help to evaluate which outsourcing company is the best choice.  To help, here is a list of the top five reasons companies outsource today.

  • Obtain access to world class capabilities. Outsourcing organizations that specialize in the specific core functions know and understand the industry, and can provide subject matter experts, innovative technology, and work force efficiency.
  • Free resources for other purposes. Business leaders can rely on an outsourcing partner to manage the outsourced core functions so they can focus on other critical areas of responsibility under their management.
  • Reduce and control operating costs. Outsourcing organizations know the market and can maintain labor costs relative to their industry.  They can also control operating costs through innovative work force efficiencies while providing a fixed fee for services.
  • Function difficult to manage or out of control. Managing the business function can be challenging if it is not a core competency.  Managing staff turnover, training and development, and employee absences also becomes very time consuming when managed internally.
  • Obtain resources not available internally. Outsourcing organizations partner with industry vendors and relevant networked associations that provide an increase in resources and industry expertise that otherwise may not be available.

Your business goals may be very similar to these top five reasons to outsource.  If so, look for an organization that can provide you with the best opportunity to achieve them all.  Choosing a national provider versus a local provider should only factor in if you are looking to be serviced on a national level.  Many times, a local provider can give a more focused approach to the relationship and your business.  Also, be very careful about choosing a partner based on pricing.  The best option may not always be the least expensive.

DOCUXCEL provides outsourced solutions for office support services, shipping and receiving, and back office functions to organizations large and small.  For further information on outsourcing these functions, contact us today.