Business Process Outsourcing

What is Business Process Outsourcing? It is the contracting of specific business tasks, such as accounting, to a third-party service provider. Many firms are investigating business process outsourcing for back-end processes as a way to cut costs and focus on core competencies.

Business process outsourcing has been around for decades, but only recently have companies seen its full potential. The main motive for business process outsourcing is to allow the company to invest more time, money and human resources into core activities and building strategies, which in turn can fuel company growth. Business process outsourcing makes a company more competitive, and achieves cost reduction and improves efficiency.

There are different types of business process outsourcing. These can include human resources, information technology, and accounting. Business process outsourcing can be outsourced either within the US or, as is most commonly occurring, abroad. The perceived cost reduction that drives business process outsourcing will continue to grow, as companies themselves continue to expand.

Companies continue to turn to business process outsourcing firms to handle non-essential day-to-day business tasks. This is a trend that does not seem to be diminishing despite it’s perceived threat to the current workforce. On the contrary, most companies see business process outsourcing as a way to enhance their business, and improve productivity, thereby adding more jobs rather than taking jobs away.