Do you want your company to be more competitive, more cost-efficient, and more focused on its core functions? Business Process Outsourcing (BPO) could be exactly what you need to achieve these goals.
What Exactly is BPO?
BPO is the practice of hiring an outside vendor to perform business functions that support your company’s core products/services but are outside of actually delivering them. These services can include payroll, accounting, telemarketing, data processing and customer support call centers.
Hiring BPO vendor-partners has been trending as new and innovative services continue to be introduced and businesses, from startups to Fortune 500 companies, seek advantages to get ahead of the competition.
How Services are Categorized
If you do an Internet search for BPO services, you will notice they are typically differentiated as back office and front office services. Back office services are for internal business processes, such as billing or purchasing. Front-office services correspond to customer-facing services, such as marketing and technical support.
BPO services are also described as being “offshore,” “nearshore” or “onshore.” Onshore vendors are in the same country as you. Vendors located outside of your company’s location are nearshore if in the neighboring country and offshore if otherwise.
Why Consider BPO?
There are many reasons your company might want to hire a BPO service partner:
- Save money to improve cash flow – reduce taxation, administration and labor costs.
- Concentrate on managing core functions – stick with your expertise.
- Improve non-core performance – work with a vendor who has greater economies of scale and expertise in your non-core services.
- Expand your global footprint – utilize services in other countries without managing operations in different time zones and languages.
- Be nimbler and more efficient – when you are efficient in non-core services, you can more easily make competitive changes in your core products and services.
BPO Illustration: Outsourcing your Accounts Payable
Many organizations realize the benefits of BPO by outsourcing their Accounts Payable processes. Here’s a common-type example.
Joe Biggs, CFO of his corporation, reviews the annual projections and realizes that to remain competitive, they need to find a way to streamline their labor-intensive AP processes for better efficiencies and performance. His objective is to reduce manual operations and costs to improve cash flow. He and his CEO have been talking about the benefits of BPO, so he starts looking for vendors offering outsourced AP services.
Through his network, Joe is referred to a company with specialized expertise and long term experience in automated Accounts Payable solutions and contacts one of their reps. He quickly learns that a number of familiar companies including a competitor is outsourcing their AP processing to this firm.
Further discussions and additional references convince Joe that transitioning his company’s manual payment processing to outsourced AP Automation would be easy and save his firm a boatload in labor, equipment and paper supplies.
For over 35 years, NEdocs has helped pioneer advances in the document management industry. For more than 10 of those years, we’ve fine-tuned the practice of providing automated AP invoice processing services to leading US and International organizations. By partnering with us, you replace the inefficient manual processes of sorting mail, opening envelopes, printing and emailing invoices for approval, tracking approvals and keying data. Our clients rely on an AP Automation solution which improves core business performance by:
- Eliminating manual operations
- Reducing approval times
- Avoiding duplicate payments
- Gaining visibility into invoices from time of receipt
- Managing invoices from anywhere
- Improving cash flow
- Reducing AP processing costs up to 80%
- Auto-matching invoices to POs
- Benefiting from vendor discounts
- Eliminating error-prone processes
- Enforcing security, fraud prevention and compliance
- Integrating with any ERP System
Like “Joe the CFO” and his happy CEO, your company can discover the benefits of applying a BPO strategy for your Accounts Payable processes by speaking with one of our specialists at (603) 625-1171.
If you would like to learn more about how AP Automation works, click for our Complete Guide to Accounts Payable Automation.