With the financial movement of the world shifting (think of blockchain and cryptocurrencies), technology more advanced (5G is in the making), and the ambition of CEOs to make their companies more profitable, BPO (Business Process Outsourcing) is not a surprising development. The BPO platform is transforming industries across the globe and its lucrativeness has thrust many businesses into greater blue-chip status. In fact, scores of CEOs see Business Process Outsourcing as an essential component to achieve their company’s future goals.
What is BPO?
The hypothesis that awards Business Process Outsourcing such distinction is because companies are progressively lucrative when utilizing it. By concentrating on the bottom-line and conciliating stress, CEOs can focus on more decisive tasks. As a former General Electric bigwig stated: “It’s about comprehending where your actual value lies and placing the best individuals and resources to support it. Don’t run a print shop: let a printing company do it.” Overall, this is precisely what the mechanism of BPO is about: freeing up time for those crucial aspects of running a business, and allowing others to use their expertise in a particular field to bolster the company.
Hiring independent contractors rather than in-house staff, is prominent among various job classifications such as accounting and tech support. The vital challenge is choosing the best talent to maintain a smoothly functioning business outside the usual corporate perimeters.
CEOs Jump on the BPO Trend
BPO is a natural step in a new-world system where companies consider the bottom-line not only as a means to keeping the company financially afloat but as a channel of expansion. What’s more, CEOs have jumped on the BPO concatenation and greatly benefited as they effectively trim down costs and increase company productivity.
PwC (PriceWaterhouseCoopers), the second largest international professional service company based in London, UK solidifies this concept in a few sentences:
“The pattern of growth in the world is shifting. Indeed, optimism in CEOs remains high relative to the environment. They are focused on growth, leading to greater innovation. Demand remains strong in many emerging markets – and is likely to stay that way for some time to come.” Referenced from the PwC CEO 20th Century Survey Report 2017. Is this because BPO has made company management more flexible?
How BPO Benefits CEOs
One precept concerning BPO is the interminable prospects the system provides; though this can vary from company to company. Still, scores of CEOs recognize the benefits of BPO and are now reaping the rewards.
Not too long ago, the term “outsourcing” was left to backroom talk and hush-hush maneuvers. Not to mention, the uproar in recent years has left many workers with the impression “outsourcing” means a primarily foreign labor force. Recently, this assumption has changed. Today, even the non-professional laborer who “thinks outside the box” will find outsourcing advantageous.
According to Gartner.com, a leading research and advisory company in reference to a recent survey, growth is the key business priority for 58% of CEOs, up from 42% from 2016. They went on to add that “product improvement and technology are the biggest-rising priorities for CEOs in 2017. Nearly twice as many CEOs are focused on strengthening in-house technology and digital capabilities just as much as those planning on outsourcing, boosting new-era technology, skills, and capabilities.”
Let’s face it, CEOs are in a precarious position. Hiring a diversity of skills, maintain a balanced budget sheet, while cultivating a vigorous in-house and out-house workforce is no easy feat. That said, the benefits of Business Processing Outsourcing are too attractive to ignore.
Probackoffice.com offers several pertinent reasons why BPO benefits CEOs:
- It’s a Time Saver
Outsourcing jobs, especially administrative jobs like accounting, allows a company’s CEO to focus on developing the vision they hold for the business and implement various strategies to implement it.
- Increase Cash Flow
Profitability is crucial if a company wants to maintain peak performance. An efficient and properly outsourced staff helps the CEO to optimize cash-flow by placing less strain on the company budget.
- Boost Efficiency
Outsourcing allows CEOs more leverage to oversee resources more efficiently.
- Operational Contentment
Taking the BPO approach reinforces contentment of day-to-day company operations. Release from diversions like how an employee will balance home and work life as not to interfere with their work, or transportation restrictions become less of an issue. Never mind behavioral clashes between in-house staff. What can be outsourced, probably should be. Business Process Outsourcing can lead to contentment if carried out properly.
Business Process Outsourcing is quickly becoming the go-to solution for CEOs around the world seeking to decrease expenditures, ameliorate productivity, and expand possibilities. Additionally, advancements in technology make BPO organization easier, as more companies emerge specializing in BPO methods.
Author’s bio; Maria Espie Vidal-Viñas writes for TimeDoctor.com, a time monitoring and productivity monitoring software designed for tracking hours and productivity of remote teams