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The popularity of business process outsourcing (BPO) has increased over the past decade or so. Now, businesses are feeling safer and more confident to achieve their targeted goals with the help of third-party servicing agencies. It’s nearly impossible to find a jack of all trades, which means it’s extremely hard to find a business entrepreneur knowing everything all alone. Entrepreneurs across the globe are making optimal use of several business process outsourcing options for fulfilling various internal and external needs of their businesses such as managing payroll, human resource (HR), accounting, bookkeeping, or handling clients.

What Is Business Process Outsourcing?

In simplest terms, it is the delegation of a specific business task(s) to a third party service provider. From managing HR-related activities to bookkeeping — it covers almost each and every aspect of the business. For most small to medium scale enterprises, it’s more or less a blessing because it helps you seek ways to adapt and stay competitive. BPO is a very common practice among corporations and large-scale enterprises as well. Outsourcing some activities to a third-party service provider that has expertise in handling core business operations helps you save a lot of time, money and resources.

Business process outsourcing is usually divided into two major categories that include back office outsourcing and front office outsourcing. Back office outsourcing includes internal business operations such as procuring, purchasing or billing and front office outsourcing includes customer-related services and support. Therefore, companies need to decide on which type of services they hope to acquire from a suitable third party services provider. The climate of outsourcing may be facing a paradigm shift by either promoting itself or facing demotion which signifies that the market is proactive and able to generate a great amount of activity.

Why Business Process Outsourcing?

A set of people with superior expertise and knowledge usually offer the market a huge range of business management-related activities that help organizations to focus more on core areas of the business, simultaneously allowing them to care less about some other areas of business. Now, companies outsource their redundant internal processing tasks to third party service providers that have specialized knowledge in their respective fields.

Moreover, most organizations around the globe cannot afford to hire in-house teams to manage each and every thing. What they do is outsource some of the functions and activities to outsource players to cut HR and other costs and improve efficiency in the processes. However, there are several pros and cons related to BPO that are briefly explained below.

Business Process Outsourcing Pros

Increased Productivity

As businesses tend to remain more focused on bringing innovation, staying competitive and productive, outsourcing is a great way to achieve all of these things. Acquiring the services of experienced and well-qualified individuals or agencies can help you increase your organization’s overall productivity. This will allow you to focus more on managing core business affairs as you will have more time for that.

Cost Saving

Cost saving is probably the second most important benefit of outsourcing. Hiring in-house teams for managing HR, accounting, marketing, financing and, hence, everything in an organization is pretty tough. Thus, outsourcing some portion of such activities to outside players can help you save a lot of money. Plus, you also save on technology and infrastructure which means you won’t need to build standard facilities or purchase equipment for getting things done. In short, choosing the right business process outsourcing can help you achieve intended outcomes at a reasonable price.

Business Process Outsourcing Cons

Data Theft

Outsourcing means sharing sensitive information or data to third-party service providers. This may cause companies a great deal of stress if their data gets misused in some way. Therefore, you must always find credible agencies for getting your crucial business tasks done.

Hidden Costs

In order to avoid hidden costs, such as legal expenses, you must ensure that everything is spelled out in the agreement and signed readily by both parties involved. Choosing an outsourcing partner you can trust can help you prevent financial surprises.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

outsourcing cloud computing - Complete Controller

Key Concepts
Cloud Computing

Cloud computing is services over the internet, such as servers, software, databases, networking, storage, server development platforms, etc. Often referred to as ‘the cloud,’ which means the delivery of on-demand computing resources. Companies that offer these computing services are predominantly known as ‘cloud providers’ that charge their customers based on usage and storage. Gone are the days when cloud computing and business process outsourcing were mere concepts. Now, they have been embraced by businesses of all scales, from small entrepreneurial business ventures to global corporations. The top reasons companies have embraced them include cost-effectiveness, minimal management efforts, and elastic resources. Check out America's Best Bookkeepers

Business Process Outsourcing

BPO, also referred to as information technology-enabled services (ITES), is the subset or type of outsourcing that involves contracting the specific crucial task to a third-party computing vendor or service provider. It includes back-office operations and responsibilities such as payroll, HR (human resources), accounting, etc.  It can also handle front-office (tech support) to third-party vendors so that businesses can invest more time in core business activities.  BPO, together with cloud computing, has achieved immense popularity since its inception, and they both have become more of a need that ensures enormous organizational growth and success. In short, it’s all about bolstering the competition and enhancing value chain engagement to achieve business process speed and efficiency.

A Need for Modern Times

Cloud computing and business process outsourcing has evolved beyond an imaginable scale over the past decade. The cloud, which was considered a mere concept not so long ago, is making waves in the industry today. Small businesses are the ones who have benefited the most, as they now have access to larger computing resources and high-performance infrastructure, which they could never dare to afford before. Since the high demand for the ‘cloud’ has led to numerous innovations, organizations, no matter what scale, are prioritizing to acquire superior cloud-based services and computing resources for increasing business process speed and efficiency. Check out America's Best Bookkeepers

Cloud Computing and Business Process Outsourcing—Done Right!

Finding the right strategic fit has become an intimidating task, especially for entrepreneurial start-up ventures. Small-scale businesses usually lack market knowledge, skills, proper information, and experience, which restricts them in finding a suitable computing service provider. As a rule of thumb, the better the service, the higher the expectations, the higher the results. This means that acquiring the right service is necessary if you expect to achieve significant results in terms of improved business processes and value chain engagement.

3 Impacts of Cloud Computing on Business Process Outsourcing

Ease of Access and Use

Cloud computing is an innovative technology that allows greater flexibility to businesses. What businesses can do is they can outsource their operations and responsibilities to third-party vendors who are responsible and accountable for your back-office (billings) and front-office (tech support). All you need to do is hire the right strategic fit that would manage and control things on your behalf, allowing you to focus on core business affairs. There are predominantly two goals that companies, small or large, always strive to achieve: speed and efficiency. Therefore, cloud computing has not only provided businesses an innovative technology to boost performance and productivity, but it has also made things convenient and far more efficient than ever. Check out America's Best Bookkeepers

Quick and Accurate Reporting

The cloud may be perceived differently by people, but those who know it well, know its strategic significance. For elevating the performance and productivity of the business, the cloud has made things working for every company. The data operators or web service providers with innovative computing techniques and defined processes allow you to focus on core aspects of the business. At the same time, they take care of the rest. Moreover, business process outsourcing provides you with quick results, which means they can be monitored or tracked on a real-time schedule. Plus, you would be surprised to know that cloud computing and its results are accurate, which makes it the biggest motivation for businesses to embrace and integrate it into their business.

Speed and Efficiency

No matter how much one may argue, BPO allows you greater command and control over the entire process. The world is moving to newer and more improved processes. You can only expect to survive if your business processes are beautifully created, supported, and executed in their right order. With cloud computing, which provides speed and efficiency, you can be on top of your business!

Summary

Businesses can only expect to sustain their competitive advantage if they integrate technology into their business operations. Undoubtedly, cloud computing has changed the entire dynamic of the web world and has eased businesses up to an unimaginable scale. Now, you can use business process outsourcing techniques to increase business efficiency, speed, performance, and, hence, overall productivity.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers