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Should Your Small Business Utilize Business Process Outsourcing? |
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Submitted by Egan Cordova
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Business process outsourcing is a growing trend among businesses looking to reduce costs, and focus on their core business practices. More companies are turning to business process outsourcing firms to handle non-essential day-to-day business functions. These functions can include IT, hr, and payroll to name a few.
Unless you are an human resources firm, your company isn't designed primarily to handle hr. That's why most businesses include an hr department to handle hiring, and firing, of employees, as well as training, benefits, and other hr related tasks. But what if your business is small, and doesn't have the necessary financing to handle a fully staffed hr department?
Most businesses that function in the 21st century use servers, computers, printers, copiers, fax machines, and other technology. Technology, no matter how advanced, tends to break down, or crash, or even become obsolete. Larger businesses include an in-house IT department to handle the technology aspect of the business. The IT department is responsible for keeping the high tech equipment repaired, and up-to-date. But what if your business is too small to implement an IT team?
I can keep listing other necessary functions that most modern businesses need in order to run at optimal levels. However seemingly indispensable these functions are, are they truly essential to the core business of the respective companies? Perhaps not.
Business process outsourcing is the contracting of specific business tasks to third-party service providers. This means that a small business has at its disposal a human resources department, a fully staffed 24-hour IT department, a fully functional payroll department, a 24-hour call center, and much more. Through the use of business process outsourcing, a small business with limited resources can function like a large business.
Business process outsourcing and all its derivatives can transform your small business and free up your resources to pursue what it was truly meant to do. You can focus a greater portion of your resources on the core elements that can take your business to the next level. By utilizing business process outsourcing, your small business will look a lot like a large business but without the associated costs.
Egan Cordova is a business author with an emphasis in outsourcing. You can check out his thoughts and find more information by visiting his Business Process Outsourcing blog.
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