BUSINESS OUTSOURCING -2

I.Discover a Wide Array of Benefits from Payroll Outsourcing

Do you know about the benefits of payroll outsourcing? For the past several years, the 'big players' in the industry has discovered a cost-effective business procedure which helps them save millions of dollars in operational costs per year: outsourcing.

When a company outsources services like customer service, technical support and payroll, a significant amount of the operational costs are slashed off. All they need to do is find a dedicated company to do a supposedly 'in house' task for them-and the outsourced firm takes care of the brunt of the work. This is exactly what happens when you are a business owner who opts for payroll outsourcing.

A Brief Overview of Payroll Outsourcing

First up, which types of business owners will benefit from payroll outsourcing? Basically, it is the small-scale to medium-scale entrepreneurs who cannot afford to maintain their own Payroll Department.

It makes perfect business sense to turn over a tedious and time-consuming task such as payroll to a team who are experts at doing it anyway. Just imagine the 'pains' that you have to go through if you are doing the payroll yourself.

Aside from needing to learn how to calculate the employee's wages, knowing how to deduct their taxes and benefits-you should also be updated with the current labor legislation. Also, you should utilize the latest payroll software, otherwise you will get charged with fees and penalties for late filing or incorrect filing.

Why go through all these hassles when they can be eliminated simply through payroll outsourcing?

So What are the Benefits of Payroll Outsourcing?

To have a deeper understanding of what payroll outsourcing can do for you as a business, take a look at the following benefits:

- You do not need to hire or train staff whose sole task is to process the payroll.

- There is no need for you to worry about deadlines not being met, and your employees will receive their salaries on time.

- Any data entry work which is related to payroll will be handled by the payroll firm that you will hire.

- The payroll outsourcing that you will hire will always upgrade the payroll software that they are using, and such upgrades will be slashed off of your operational costs as well.

- Instead of processing the payroll, you or another employee can focus on the main aspect which earns money for your business.

With all these benefits and more, why else would you not take advantage of payroll outsourcing?

II.BPO Companies: The future of outsourcing

Business Process outsourcing means delegation of work to another company. As of today, almost everyone knows the meaning of outsourcing. But, do they really understand the benefits? We would discuss some of the facts and some of the benefits.

BPO is often divided into two categories:
1. Back Office: Which includes internal business functions such as billing or purchasing.
2. Front Office: Which includes customer-related services such as marketing or tech support.

Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer. BPO includes the software, the process management, and the people to operate the service, while a typical ASP model includes only the provision of access to functionality and features provided or 'served up' through the use of software, usually via web browser to the customer.

There are 3 types of BPO Companies:
1. Offshore Companies
2. Onshore Companies
3. Near Shore Companies

Offshore BPO Companies are companies located overseas. Most of the Offshore Companies are located in India, Philippines, China, Pakistan, etc.

Onshore companies based in the same country are called Onshore companies. For example: A company based in US outsources technical support to a US based call center.

Near Shore BPO Companies would mean companies which are based very near to the nation. For example: A Company based in Canada servicing to a US based company. Some examples of Near Shore BPO Companies are call centers based in Dominican Republic, Romania, Costa Rico, Mexico, etc.

Majority of BPO companies are located overseas and provide call center services, data entry work, email answering services, telemarketing,etc.

Benefits of Outsourcing Companies:

1. Cost Reduction: The most important factor is cost reduction. Offshore outsourcing companies operate at very low cost. An average Call center in US charges $15- $20 per hour for technical support or customer service, whereas, call centers in India charge $8 - $12 an hour for the same job.

2. 24/7 operations: BPO Companies operate 24/7 and 365 days a year. This proves to be an excellent advantage over onshore call centers.

3. Quality of Service: BPO Companies focus on delivering high quality service to the companies they work for. Quality and data security parameters like ISO, BS 7799, 6 Sigma, COPC, lean are studied and implemented to maintain high quality standards.

BPO Companies are growing rapidly as of today. In India giants like IBM, Convergys, Aegis, Wipro, GE, American Express, 24/7 have around 10000 employees offering support to developed countries worldwide.

Considering the growth of BPO Companies, it would be a wise decision to venture into the industry. Experts predict that the Outsourcing Companies will rise in near future, opening more avenues for all. One BPO Company is established almost everyday in India alone. This is not just the present, it is the future.