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Business Process Outsourcing for Organizations – Functions That Can Benefit

Blog: MattsenKumar Blog

In 2018, the global business process outsourcing industry was worth $85.6 Billion, by March 2019, 59% of businesses started outsourcing processes to reduce expenses and increase efficiency. Businesses are diligently looking for outsourcing partners because it spares them with enough time to focus on important tasks.

When sub-processes are outsourced, executives are left with enough time and resources to focus on core business processes. Organizations also outsource processes that need to be executed properly but they lack SMEs to implement it. By outsourcing innocuous processes like bookings, payroll management, cold calling and preparing interview schedules, enterprises can help their valuable executives focus on important tasks.

Why organizations choose Business Process Outsourcing?

The reason for outsourcing varies with companies but there are some specific processes that every organization can outsource. An enterprise is made up of functions that come together to serve one end goal. Business Development & Marketing, Human Resources, IT, Admin and Finance are some functions that exist in every organization.

While the dependence on technology has increased, the changing nature of the job leaves employees with less time to serve their functions efficiently. By outsourcing not-so-important processes from all functions, organizations can help their valuable employees focus their efforts in the right direction.

Helps Executives focus on Core Processes: When leaders are left with time to focus only on core business processes, they analyze available data and discover new avenues of growth. By outsourcing sub-processes, organizations can help their thought leaders think clearly.

Boosts Efficiency and Effectiveness: The job of a marketer is to get the interview published and shared across all channels and not fixing appointments and doing follow-ups. By outsourcing such tasks, marketers can focus on work and come up with effective content.

Improves Revenue: Yes! Outsourcing is cheaper and improves revenue. India is the most preferred location for outsourcing back-office tasks, the cheap labor, and the English speaking population offers incomparable service and improves the bottom line as well.

Business Functions that can benefit from Outsourcing

Business Development & Marketing

Business Development and Marketing functions are responsible for identifying potential prospects, generating leads and preparing collaterals. While business development team manages all the outreach task that includes data collection, cold calling, and follow-ups, marketing is responsible for creating appealing content, putting it in the world and helping the organization communicate its brand value correctly.

To make business development and marketing team more efficient, organizations can outsource the following processes and leave professionals with more time to concentrate on client service:

 Human Resources

HR is perhaps the backbone of an organization, not only they are responsible for hiring efficient people but also responsible for creating policies that are just to both employees and employers. Human Resource always finds themselves juggling between talent acquisitions and maintaining employee relations.

By outsourcing the following processes, organizations can turn their human resource function more effective and efficient:

Employee Verification: In the times of illegal migrants and terrorist activities at the peak, it is indispensable for enterprises to conduct employee verification. These verifications require reaching out to previous employers and local police stations, which is not something that requires help from professional executives. These processes can be outsourced to agencies who can carry out the verification in bulk from time to time.

Payroll Management: All processes that are repetitive and requires no guidance from subject matter expert can be outsourced including payroll management. Since organizations have more salaried employees than contractual, it is easier to outsource these processes without affecting the day to day business.

Hiring Operations: Organizations that need to hire hundreds of employees from time to time can outsource hiring operations to industry leaders. Hospitality and entertainment industries can easily outsource their hiring operations to ensure they are never lacking resource.


 It is the day-to-day operations that are repetitive in nature that needs to be outsourced at the earliest. Various types of BPOs have invested heavily in acquiring expertise in repetitive tasks, which is good for bigger organizations. By outsourcing repetitive to tasks to Subject Matter Experts, enterprises can save themselves from monotony and focus on innovation.

Order Processing: Be it a B2B or B2C, order processing can always be outsourced to BPOs. The scope of business process outsourcing related to order processing is high and impactful because countries like India and the Philippine have affordable English speaking talent.

Onboarding: Be it a restaurant or cab aggregator entity, they can outsource their lead generation and onboarding tasks to contact centers. Cost-saving is not the only feature of BPOs, they can assist organizations with varied other tasks including lead generation and onboarding sellers/drivers.

KYC Processing:  All aggregators whether cab or restaurant needs to fulfill Know-Your-Customer compliances, which is very bulky and strenuous in nature. With effective BPOs offering KYC processing services, aggregators can focus on improving the algorithm and increasing efficiency.

 Administration & Finance

Both Administration and Finance are functions that run the show from behind the curtain. Without their effectiveness, organizations will fail to transport employees from home to office and all vendors will also succumb. Admin & Finance works round the clock to ensure that day to day activities in a company are running smoothly.

While processes involved in Admin & Finance must be managed from the head-office but some processes do not impact the output of enterprises much, like:

Bookkeeping & Accounting: Hiring a team of account graduates to keep books and manage the day to day finance will only add to the company’s cost. Since these processes require monthly updates and have no impact on daily operations, it is easy to outsource these processes.

Travel and Bookings: Earlier, organizations used to buy vehicles to transport their employees from home to the workplace but the growing regulations have coaxed them into outsourcing these processes. By outsourcing travel and bookings, admin and finance functions can save time and resources to concentrate on running the office efficiently.

Security: The security of every employee is the responsibility of the admin function. By outsourcing security to professionals, the team can offer better protection to employees and the company’s assets.

IT & Data Security

Organizations spend millions to establish a running office, they buy hundreds of computers and spend years managing them. By outsourcing IT services to professional companies, big businesses can save themselves from a lot of hassle.

Administrative Support: Building a team of professionals is not only tough but requires resources and incomparable dedication. By outsourcing IT administrative support to industry experts, businesses can ensure 24X7 connectivity and efficiency.

Data collection and management: Running a business requires entrepreneurs to maintain a database of everything that happens in day to day operations. Industry experts have developed paradigms that record, manages and maintains back up of every data created at organizations.

Business Process Outsourcing Examples

BFSI and NBFC: The 3G/4G penetration now covers 95% of regions of countries like India and China. With Internet penetration increasing, the app-based payment system is gaining momentum. With the increasing use of the online payment systems, the need for effective customer support and affordable onboarding services have grown.

NBFC and BFSI sector are leveraging varied features of BPOs to the fullest to ensure smoother functioning. By outsourcing the following functions, they have reduced the burden on the core team and ensured quality in all processes.

E-commerce Marketplaces: Unlike standalone online stores where everything from designing, cataloging, selling and shipping is managed by a company, marketplaces are relying on BPOs heavily. By leveraging varied types of BPOs, marketplaces are improving their overall impact.

Top processes outsourced by leading marketplaces are:

Outsourcing is not always about saving money, at times it is about increasing the efficiency of businesses. When repetitive processes are outsourced, thought leaders and professional executives are spared with enough time to concentrate on important processes that will take the companies forward.

Technological advancements have made BPOs quite efficient and accountable. An incomparable combination of state-of-the-art technology and talented professionals are offering businesses with the requisite accuracy and efficiency.

The post Business Process Outsourcing for Organizations – Functions That Can Benefit appeared first on MattsenKumar.

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