Back Office Outsourcing: A Smart Way Of Increasing Profits By Reducing Costs

By: Michelle Barkley


The very famous business process outsourcing (BPO) trend is some what synonymous to back office outsourcing. Back office work relates to that mundane paper work that people often find boring and a waste of time and talent. Hence these tasks attract a high cost since people doing these jobs need to be paid well in order to do these monotonous and routine jobs. There basically relate to doing the same thing over and over again until the employee gets so bored that he would finally quit. Thus sending these jobs to someplace far where it won’t cost much as well as it being back office won’t affect the business adversely in fact only add to profit figures.

There are plenty of countries undertaking these back office jobs due to various reasons for example they have a workforce which is highly skilled, ready and more than willing to do these jobs due to poverty in the third world nations. These situations have forced the developed countries to reconsider their opinions on the developing ones. Developing countries have been placing a high amount of attention on education making their workforce highly skilled and professionally qualified to do these tasks. Countries like India and China receive a lot of back office outsourcing work due to their lower costs and currency advantages.

There are lots of advantages for entrepreneurs who have not yet considered the option to outsource a part or whole of their back office related work. It being cost cutting is one of the primary reasons since the amount of costs saved by a firm exceeds thousands of dollars sometimes. Another reason is that the quality is not taken for granted which might happen most of the time when one does not outsource. The amount of tension and stress reduces since the liability of the work getting done on time lies with the outsourcer and the owner only has to check if the work done is according to his wants or not.

With the world becoming a global village, there are no time limits and the outsourcer is willing to hire a workforce which is willing to work at night for the needs of the business. There are only advantageous for the owner in outsourcing provided he keeps track of his business.

Studies have also shown that business and back office outsourcing has increased business efficiency by almost 50%. This increase in productivity levels is due to the fact that all the unwanted, mundane and boring work has been done by others and the work force can think out of the box and create innovative ideas. The position of the firm outsourcing work also gets boosted and creates an edge over the rest.

The entrepreneur should check with various things before outsourcing work to other firms. He should check the reputation of the firm, the amount of clients the firm serves, whether it gives the work on a timely basis with extra eye towards quality and if it is in line with the work the firm does and has been doing. There might be firms that charge a little more than others but if the work done is in par with the quality then the entrepreneur should not consider the cost incurred although that cost would be lower than the actual cost the entrepreneur might incur any day.

Article Directory: http://www.articletrunk.com

| More

Michelle Barkley is a CPA who advises people on tax preparation and tax calculation. She specializes in Finance accounting outsourcing, bookkeeping outsourcing. To know more about Tax return outsourcing, Back Office Outsourcing, Bookkeeping Outsourcing and Tax return visit www.ifrworld.com

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Accounting Articles Articles Via RSS!


Powered by Article Dashboard