The BPO Model of Improving Critical Business Performance

by Dan McCue, SVP - Finance and Accounting Services, Sutherland Global Services (www.suth.com) Business Process Outsourcing (BPO) consists of two categories: Back Office outsourcing, which includes internal business functions such as finance and accounting, purchasing and employee help desk support and Front Office outsourcing, which includes customer-related services such as account management, customer care and tech support.

Both of these categories share a common goal: To improve critical business performance metrics. The specific tactics employed include:

Cost reduction - BPO Companies can charge less for services by providing better technology, improved processes and access to low cost geographies

Reduction in managerial activities - By managing transaction processing employees and the potential for associated employee issues, BPO firms allow companies to focus on their core business goals

Improved access to technology and processes - BPO’s provide turn-key solutions and execution eliminating the need for companies to employee a staff for non-coreactivity

If you can answer "yes" to any of these questions, your operation and processes are good candidates for BPO:

Can the process be performed away from the primary business operation? For example physical inventory can only be done at the business site, but reconciling the physical inventory to the GL can be done remotely.

Can the source documents and business systems be accessed remotely? A vendor invoice can be scanned, uploaded to a server for access by a person using your web-based GL system.

Is the process under consideration non-core to your business? For example entering an AP invoice in most cases in not core to a business.