Introduction to Business Process Outsourcing PDF

UNIT 1: Introduction to Business Process Outsourcing UNIT 1 INTRODUCTION TO BUSINESS PROCESS OUTSOURCING This module...

UNIT 1: Introduction to Business Process Outsourcing UNIT 1 INTRODUCTION TO BUSINESS PROCESS OUTSOURCING This module introduces the students to the IT-BPM Industry. This should give them an idea on what the industry is all about, what is currently happening and what opportunities can be found inside the industry. By the end of this unit, students should be able to:  define and explain what is outsourcing  identify the reasons why companies outsource  identify the functions/ Services that are being outsourced  enumerate the advantages and disadvantages of outsourcing IT 306 BUSINESS PROCESS OUTSOURCING 101 1 UNIT 1: Introduction to Business Process Outsourcing LESSON 1: IT-BPM INDUSTRY SNAPSHOT IN THE PHILIPPINES OBJECTIVES: At the end of this lesson, students are expected to:  describe the IT-BPM Industry in the Philippines  identify the 5 types of outsourced activities  recognize challenges of the IT-BPM industry in our country  explain how IT-BPM can contribute to the overall growth and development of the country Duration: 1.5 hours IT 306 BUSINESS PROCESS OUTSOURCING 101 2  UNIT 1: Introduction to Business Process Outsourcing IT-BPM Industry Snapshot in the Philippines The Philippines’ Information Technology and Business Process Management (IT-BPM) sector is one of the best-performing and employment generating activities in the past years. Its global leadership in voice-based services as well as continuing improvements in non-voice and complex process outsourcing show the promising growth trajectory of the IT-BPM sector. To be able to cement its position in the global IT-BPM sector, the Information Technology and Business Process Association of the Philippines (IBPAP) has advocated for deeper policy reforms which will support employees’ skills development and maintain a competitive business environment for the industry. Figure 1.1 IT and Business Process Association of the Philippines Source: https://pia.gov.ph/news/articles/1002618 The industry's initiatives focus on four action areas: (1) widening and deepening human capital by scaling up industry with public-private partnerships; (2) strengthening Philippine attractiveness as an investment destination through advocacy activities; (3) achieving Roadmap 2016 goals by leading cross-sectoral efforts; and (4) building the Philippine IT-BPM brand globally through marketing programs. As of 2010, the Philippines’ IT-BPM sector has already overtaken India’s standing in voice-based services, making the country the number one provider for such services in the global economy. Voice-based services are also identified as the largest contributor in the local BPO industry, comprising 64% (493,000) of generated direct employment and 67% ($ 7.4 billion) of total revenues in 2011. Aside from this, several non-voice and complex BPO services such as healthcare information management, knowledge process outsourcing, engineering, animation, and software development are gaining prominence in the global BPO sector and are at a higher growth pace vis-à-vis voice-based businesses. The global foothold of the Philippine IT-BPM industry is largely attributable to the strong skills of the Philippine labor force. In voice-based services, Filipinos hold a competitive advantage in English communication skills, strong customer service orientation, and adaptability to consumers’ Western culture. In non-voice and complex services, The Economist and Everest Group analysts report the growing number of businesses providing healthcare information management, human resources management, business intelligence, and offshore financial consulting in the Philippines. Coupled with Filipinos’ hard work and IT 306 BUSINESS PROCESS OUTSOURCING 101 3  UNIT 1: Introduction to Business Process Outsourcing openness to learning, these two existing advantages provide investors with a strong advantage once they set up shops in the country. Figure 1.2 The BPO Industry in the Philippines Source: https://www.straightarrow.com.ph/blog/the-philippines-outsourcing-capital-of-the-world Original photo courtesy of the Business World As an enabler of business, the Philippine government provides IT-BPM firms with one of the best investment environments so that they can operate their enterprises productively. For instance, the Board of Investments (BOI) provides income tax holidays, tariff reductions in capital equipment and streamlined business registration, and coordination procedures for non-voice and knowledge process outsourcing enterprises which produce original content. The Philippine Economic Zone Authority (PEZA) also provides an incentive package for IT-BPM businesses, including voice-based services in its scope of qualified investors. Aside from better coordination procedures with the government, IT-BPM enterprises benefit from a sound telecommunications infrastructure in the country as well as a stable pool of skilled professionals in urban cities, where the population base is growing at stable replacement rates. These conditions assure that businesses can conduct their activities within a stable macroeconomic and investment climate. Figure 1.3 IT-BPO Sector Highlights Source: IBPAP, presented during “Career Opportunities in the IT-BPM Sector” Online IT-BPM Industry Career Roadshows, August 26,2020 IT 306 BUSINESS PROCESS OUTSOURCING 101 4  UNIT 1: Introduction to Business Process Outsourcing IT-BPM Industry Overview In 2010, The Philippine Information Technology and Business Process Management(IT-BPM) industry garnered recognition from around the world. The UK’s National Outsourcing Association determined the country as #1 in the business process outsourcing service in its Global Business Trends report. Figure 1.4 Philippine IT-BPM Industry Through the Years Source: IBPAP, presented during “Career Opportunities in the IT-BPM Sector” Online IT-BPM Industry Career Roadshows, August 26, 2020 The word is definitely out – the Philippine is a major player in the global IT-BPM. The opportunity remains for the Philippine IT-BPM industry to capture a bigger share, given the global offshoring services market is seen to more than double by 2016. The industry has the potential to bring in USD$25 billion in revenue, and employ 1.3 million individuals by 2016. Figure 1.4 Philippine IT-BPM Industry Through the Years Source: IBPAP, presented during “Career Opportunities in the IT-BPM Sector” Online IT-BPM Industry Career Roadshows- August 26, 2020 IT 306 BUSINESS PROCESS OUTSOURCING 101 5  UNIT 1: Introduction to Business Process Outsourcing Offshoring and Outsourcing (O&O) is perhaps one of the most unique developments in business and industry. Firms now adopt a truly global scope with the opportunity to situate their operations across the world. Outsourcing is said to have first flourished in the run-up to the beginning of the second millennium. IT processes and operations were migrated to India as some American and European companies focused on dealing with the Y2k problem. Y2K explained: The Year 2000 problem, also known as the Y2K problem, the Millennium bug, Y2K bug, the Y2K glitch, or Y2K, refers to events related to the formatting and storage of calendar data for dates beginning in the year 2000. Problems were anticipated and arose because many programs represented four-digit years with only the final two digits – making the year 2000 indistinguishable from 1900. The assumption of a twentieth-century date in such programs could cause various errors, such as the incorrect display of dates and Figure 1.5 The Y2K Bug the inaccurate ordering of automated dated Source: https://nchschant.com/16255/news/y2k-not-today-looking- back-on-the-millenium-bug-20-years-later records or real-time events. The Philippines is a recognized global strategic partner in providing continuously excellent service in the following: 5 types of outsourced activities Contact center Back-office and KPO Software development Animation and game development Engineering design The industry not only provides us jobs for making and receiving calls. Those with expertise in other subsets of the IT-BPM industry such as Knowledge Process Outsourcing, Software Development, Animation and Game Development and Engineering Design also have opportunities. So, contrary to popular understanding, beyond making outbound and taking inbound phone calls, the Philippines is proven to be a preferred solutions provider to the global clientele. IT 306 BUSINESS PROCESS OUTSOURCING 101 6  UNIT 1: Introduction to Business Process Outsourcing Figure 1.6 Philippine IT-BPM Industry Source: IBPAP BPO 101 Teacher’s Guide module 2013 The graph shows a clear upward trend and growth projection for the country. The “Percentage of GDP (Gross Domestic Product) is the industry’s direct contribution to the financial growth of the country. “Direct Jobs” is employment directly attributed to activities – operations, growth and expansion – of the industry. “Indirect Jobs” is employment indirectly generated in relation to activities of the industry. For example, contact center employees working on graveyard shifts buy their food from fast-food restaurants who decided to do business 24 hours because of demand. The same goes for jeepney and taxi drivers who decided to stay up late for employees going to the office in the evening. They are not employed by companies yet are benefiting from these opportunities. “What’s at Stake” is a very clear opportunity for the country to positively uplift the quality of life. This is accomplished through salaries and wages paid to employees of the IT-BPM industry as well as to salaries and wages earned through indirect employment. Regardless if the job is direct or indirect in its origin, taxes are paid to the government. These taxes are then used to put to work the development of infrastructure, utilities, security and welfare of the country. The current challenge of the country is its ability to cope with the growing demand for personnel who meet the quality standards of the industry. Some components of these quality standards are represented through English proficiency, business acumen, technical expertise, computer proficiency, and overall professionalism. IT 306 BUSINESS PROCESS OUTSOURCING 101 7  UNIT 1: Introduction to Business Process Outsourcing The current nationwide challenge and opportunity are to consistently and reliably provide highly skilled and professional “homegrown” personnel. Figure 1.7 former Senator Mirriam Defensor-Santiago stressed the importance of meeting the international standard to boast BPO Industry in the country Source: Call Center Philippines FB Page Posted on January 7, 2016 This is a golden opportunity for each of you to join this very progressive, dynamic, and financially robust industry as a means to grow personally, professionally and economically, and at the same time, actively contributing to the overall growth and development of the country. Figure 1.8 The Philippine IT-BPM Roadmap 2022 is all about accelerating the growth of the PH IT-BPM industry Source: https://www.asocio.org/members/our-members/it-business-process-association-philippines-ibpap/ Hopefully, you have gained a better understanding of what the IT-BPM industry is and its overall value to the Philippines. The next topic will take a more in-depth look at the industry. IT 306 BUSINESS PROCESS OUTSOURCING 101 8 UNIT 1: Introduction to Business Process Outsourcing LESSON 2: INTRODUCTION TO IT-BPM INDUSTRY OBJECTIVES: At the end of this lesson, students are expected to:  define what is outsourcing  explain what is business process outsourcing Duration: 2.0 hours IT 306 BUSINESS PROCESS OUTSOURCING 101 1  UNIT 1: Introduction to Business Process Outsourcing What Is Outsourcing? Did you know that there are a lot of career opportunities in the IT-BPM industry? It is because most businesses are outsourcing some of their goods and/or services. To help us explain the concept of outsourcing, here is a short activity. Question: “When you wake up in the morning, what would you prefer to have for breakfast? A fully-loaded cheeseburger or corned beef?” Answer: Figure 1.9 A fully-loaded cheese burger or corned beef for breakfast Source: IBPAP BPO 101 Teacher’s Guide module 2013 Do you know how to prepare what you want to eat for breakfast? It does not matter, cheeseburger or corned beef, do you know how to prepare your breakfast meal? Prepare meaning, knows how to cook or to grill, to slice up ingredients. Do you have the capacity to produce everything you need – as in everything you need to enjoy either your cheeseburger or your corned beef? Try to answer the following: Do you have a cow? (Yes/No) Do you have a herd of cows? (Yes/No) Do you have a farm to grow and harvest onions, tomatoes, lettuce? (Yes/No) Do you have a dairy processing plant to make cheese? (Yes/No) Do you have the capacity to butcher a cow and process the meat? (Yes/No) Do you have a canning or packaging plant to preserve your uncooked meat? (Yes/No) IT 306 BUSINESS PROCESS OUTSOURCING 101 2  UNIT 1: Introduction to Business Process Outsourcing Figure 1.10 Ingredients are possibly outsourced by the companies Source: IBPAP BPO 101 Teacher’s Guide module 2013 The world we live in is highly interconnected and outsourced. Just imagine the number of companies involved in providing us with electricity or water. The number of players involved when we watch a movie with our friends in the theater at a nearby mall. Or, imagine the number of companies involved in sending and receiving a text message possible. Every time we buy something from somebody rather than producing it ourselves, we have essentially 'outsourced' the production of that goods or service. Outsourcing means contracting a service provider for the delivery of a process or service. Outsourcing is any task, operation, job or process that could be performed by employees within an organization, but is instead contracted to a third party for a significant period. In addition, the functions that are performed by the third party can be performed on-site or off-site. This is often referred to as Business Process Outsourcing or BPO. Figure 1.11 Business Process Outsourcing Source: https://tsdglobal.com/businessprocessoutsourcingbook IT 306 BUSINESS PROCESS OUTSOURCING 101 3  UNIT 1: Introduction to Business Process Outsourcing Business Process Outsourcing Explained Figure1.12 Subcontracting various business-related operations to third-party vendors in other countries Source: https://www.socialana.com/outsourcingtips/ Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. Although BPO originally applied solely to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains, BPO now applies to the outsourcing of services, as well. Figure 1.13 Sample back office and front office operations Source: http://supernalsolutions.com/business-process-outsourcing/ Many businesses, from small startups to large companies, opt to outsource processes, as new and innovative services are increasingly available in today's ever- changing, highly competitive business climate. Broadly speaking, companies adopt BPO practices in the two main areas of back-office and front-office operations. Back office BPO refers to a company contracting its core business operations such as accounting, payment processing, IT services, human resources, regulatory compliance, and quality assurance to outside professionals who ensure the business runs smoothly. By contrast, front office BPO tasks commonly include customer-related services such as tech support, sales, and marketing. IT 306 BUSINESS PROCESS OUTSOURCING 101 4  UNIT 1: Introduction to Business Process Outsourcing BPO is often referred to as information technology-enabled services (ITES) because it relies on technology/infrastructure that enables external companies to efficiently perform their roles. Because of the growing numbers of companies that are outsourcing their business processes, more career opportunities are being offered in the IT-BPM industry. Can you figure out now which IT-BPM sector are you going to join after graduation? What IT-BPO career would you like to pursue? Figure 1.14 Career Opportunities in the IT-BPM Industry Source: IBPAP, presented during “Career Opportunities in the IT-BPM Sector” Online IT-BPM Industry Career Roadshows- August 26, 2020 How Do BPO and BPM Differs? Many of us are asking what is the difference between the two. These two industry jargons tend to perplex especially to those who are just introduced to the IT and business industries. Luckily an online article answers this query by providing a comprehensive yet distinctive explanation of the concepts. Difference between BPO and BPM http://www.differencebetween.info/difference-between-bpo-and-bpm Key Difference: BPO, short for Business Processing Outsourcing, is the business that focuses on tasks, ranging from manufacturing products to providing customer care. On the other hand, BPM or short for Business Process Management is the process of dealing with or controlling things or people more effectively and efficiently to an over-changing environment. There is not a lot of information to differentiate between BPO and BPM, but BPO is more focused on outsourcing, whereas, BPM is more focused on management related tasks. IT 306 BUSINESS PROCESS OUTSOURCING 101 5  UNIT 1: Introduction to Business Process Outsourcing BPO, short for Business Processing Outsourcing, is the business that focuses on tasks, ranging from manufacturing products to providing customer care. It usually consists of the back office or front office operations. It is a process where number of people work for a specific business. It is originally associated with the firms of production of goods for use or sale using labor and machines, tools, chemical, and Source: http://www.mindsharptechnologies.com biological processing, or formulation such as Coca Cola that outsourced large sections of its supply chain. The trend started in the late eighties in foreign countries. It is helpful for those who are under-graduate or graduate and are not able to be employed in any company. If one has the skill, he will definitely be employed in a BPO. Nowadays, it has become a fashion or trend for youngsters to work in BPO just for time pass. Data entry and call centers are some examples of BPO operations. BPM, short for Business Process Management, is the process of dealing with or controlling things or people more effectively and efficiently to an over-changing environment. Basically, it is a subset of infrastructure management, where maintaining and optimizing an organization’s equipment are to be managed. The Source: http://www. djworx.com goal of BPM is to reduce the errors which are made by humans and focus on stakeholders. BPM has six basic strategies: 1. Simulate a change to the process 2. Process modeling and design 3. Visualize and define functions and the process improvement 4. Do up the process in an improved way for better results 5. Business rules engine 6. Workflow engine The developments of the business process are mainly focused on technology and reuse the work. It comprises of planning, organization, controlling or directing a group of people to accomplish goals. Though in all businesses, management is the act of coordinating the efforts of people to accomplish desired goals, but in BPM, they are only focused on the tasks which are related to management and, its tasks and activities. The industry is looking for a PR boost with a quick name change, so many of the BPO companies are now converted to BPM. In short, BPM refers to a management process, while BPO refers to the “state of the mind” of an organization, or more exactly of the employees. IT 306 BUSINESS PROCESS OUTSOURCING 101 6 UNIT 1: Introduction to Business Process Outsourcing LESSON 3: WHY COMPANIES OUTSOURCE? OBJECTIVES: At the end of this lesson, students are expected to:  explain why company outsource  identify the top 7 reasons from business leaders why do companies outsource Duration: 1.5 hours IT 306 BUSINESS PROCESS OUTSOURCING 101 1  UNIT 1: Introduction to Business Process Outsourcing Why Companies Outsource? Outsourcing was clearly demonstrated by our cheese-burger or corned beef discussion. So, given that everyone outsources to some degree or another. The question now is “Why?” Figure 1.15 Planning for outsourcing Source: https://bleuwire.com/it-outsourcing-plan-before-you-act/ There are several reasons why companies outsource. 1. Capacity Management Capacity management has to do with the associated manpower and related expertise of that workforce. Try to imagine how many employees Globe, Smart, or Sun Cellular would need if they did not source out their mobile phones for their subscription plans and decided instead to manufacture their phones. If our network operators decided to do this there would be an immediate impact on the next item – cost. 2. Lower Cost The cost has a lot to do with a company’s sustainable capacity to effectively produce or deliver its products and services. For example, US Companies would prefer to pay a Filipino contact center associate $16,000 per annum rather than $70,000 for an associate in the US. IT 306 BUSINESS PROCESS OUTSOURCING 101 2 UNIT 1: Introduction to Business Process Outsourcing 3. Better Performance Better performance has to do with manpower and the associated expertise of that workforce. A known appliance manufacturer, Panasonic, entrusts the selling of their products to distributors like SM Appliances or Abenson so they could focus more on their core activity which is manufacturing. 4. Faster and Continuous Service Delivery Outsourcing provides greater output from work being done around the clock. As an example, a patient in the US underwent an x-ray and ultrasound on Day 1. The data is sent to the Philippines. While the US doctors are sleeping, doctors here in the Philippines are analyzing the data, then sends it back to the US. On Day 2, the US doctors can give the results to the patient. 5. Part-based Activities Part-based activities are closely related to operational efficiency. Perhaps one of the best ways to illustrate this point is through passenger car assembly lines. The entire assembly or production line is clearly subdivided into specific tasks or stations. Each station then having its own; specialized personnel, equipment or machinery, raw materials, and cycle- time. This work segmentation allows for numerous benefits such as; greater degree of control, inventory management, troubleshooting, and forecasting to mention a few. IT 306 BUSINESS PROCESS OUTSOURCING 101 3  UNIT 1: Introduction to Business Process Outsourcing Top 7 Reasons from Business Leaders Why Do Companies Outsource Markets predicted that in 2019 the industry of cloud computing, which is mostly associated with outsourcing, would reach $200 billion US. That’s a lot of outsourcing and that number only includes cloud computing! So, why do companies outsource? Outsourcing is a solid strategy to maximize efficiency, save costs, and improve core services. Let’s take a look at the top 7 reasons why various business leaders opted to outsource. 1. Cost Savings “Cost savings is the main advantage that outsourcing brings in. Even if you find the IT guy with the desired qualification and knowledge, it is likely to cost you a large amount of money. Outsourcing comes to you as a boon. In addition to hiring a company that already specializes in IT infrastructure, it gives you the cost-benefit, which is often a fraction of what you would pay a full-time employee.” -Rohan Bhansali Co-founder and Director of Gozoop, India’s largest independent digital agency 2. Scale Quickly “You don’t need to maintain a huge headcount to achieve economy of scale as manpower can be acquired immediately on a contractual basis. Outsourcing is a very good proposition for startups in manufacturing that are looking to scale up fast.” - Himadri Das HR & Legal Compliance Professional IT 306 BUSINESS PROCESS OUTSOURCING 101 4  UNIT 1: Introduction to Business Process Outsourcing 3. Network Security “With the IT resource quitting suddenly, valuable information, data regarding network and IT infrastructure could get lost or misplaced. Network security is another concern and so is the possibility to function efficiently in its temporary absence. Outsourcing does away with these worries by guaranteeing numerous resources and records that can be shared within your team.” -Roopen Roy Former Managing Director of PWC India and Deloitte Consulting India Founder and CEO of Sumantrana 4. Focus on Growth “Most entrepreneurs have great talents but many times they think they can do it all. That can really stall the growth of the business. By outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income.” -Laura Lee Sparks Owner of Legal Marketing Maven 5. Remain Competitive “Progressive entrepreneurs realize the unstoppable power of outsourcing to handle aspects of their business that are essential but simply don’t make sense for them to deal with personally. Small business, augmented by a global pool of human capital, can compete directly with the biggest players in their space, and win.” -David Walsh Entrepreneur Author of Source Control IT 306 BUSINESS PROCESS OUTSOURCING 101 5  UNIT 1: Introduction to Business Process Outsourcing 6. Grow Business “At first I felt like I was the only person who could do the work efficiently; I wanted control over everything. But I wanted my business to grow and in order to do that I had to let go and start delegating.” -Tonya Thomas President of The Small Office Assistant 7. Delegate Tangential Processes “Small businesses must identify their core competencies and capabilities and focus their own R&D, talent management and resources on being the best in their industry at these. Outsourcing any aspect of [these tasks] would be a big mistake because they would cease to offer anything that their own customers couldn’t get elsewhere. So a small business that focuses on product design should not outsource anything related to developing its internal design talent or their design activities. But they should investigate all opportunities for outsourcing tangential processes like payroll services, IT and so on.” -Marc Resnick Ph.D. & a Small Business Consultant Director of the Institute for Technology Innovation at Florida International University *Images courtesy of Google Images IT 306 BUSINESS PROCESS OUTSOURCING 101 6 UNIT 1: Introduction to Business Process Outsourcing LESSON 4: WHAT IS BEING OUTSOURCED? OBJECTIVES: At the end of this lesson, students are expected to:  identify what are the business processes which are being outsourced and give examples of each  enumerate the IT services that are being outsourced Duration: 3.0 hours IT 306 BUSINESS PROCESS OUTSOURCING 101 1  UNIT 1: Introduction to Business Process Outsourcing What is Being Outsourced? Several business processes are being outsourced to other companies. Here are some: Support or auxiliary services Routine activities or activities that can be automated at large centers IT services Support or auxiliary services As an example, a school would rather hire the expertise of a professional security agency rather than hiring their security guards. This way, the school owner can focus on managing the school. Having security guards for shifting schedules or having a replacement when a guard is absent is the security agency’s concern. Other support or auxiliary services that are being outsourced are: Cafeteria Janitorial services Copy center Building maintenance Trucking/Shopping Security Payroll Legal services Routine activities or activities that can be automated at large centers Small banks outsourcing check processing to larger banks, riding on ATM- based of multibank network Figure 1.16 Banking transformation Source: https://www.i-scoop.eu/digital-transformation/digital-banking-transformation-community-banking IT 306 BUSINESS PROCESS OUTSOURCING 101 2 UNIT 1: Introduction to Business Process Outsourcing Banks using common/multi-bank core banking services of large technology providers Figure 1.17 Core banking solutions Source: https://ranial.com/portfolio-item/core-banking-system/ Small vendors using Amazon.com as data center, marketing, and payment processing platform Figure 1.18 Marketing outsourcing services Source: https://www.evantagestore IT 306 BUSINESS PROCESS OUTSOURCING 101 3  UNIT 1: Introduction to Business Process Outsourcing IT services Figure 1.19 IT-BPO services Source: https://www.syarose.com/business-process-outsourcing Nowadays, IT services are being outsourced by companies to focus on their core business processes. Here are some of the outsourced IT services: Application Development. Regardless if it is the Apple Apps Store, or the Android Market for Android-powered devices, or, Marketplace or Ovi Store for Nokia all of these online mobile application shops have, for example, Rovio’s Angry Birds. An organization with a large marketing and sales force is an example, too. In many instances, this company will contract an application developer to write or customize an application to help the company better track sales or job orders, inventory levels and movement, stock levels, price fluctuations of competitor brands, etc. Application Maintenance and Management. Take for example our very own National Bureau of Investigation (NBI). The NBI contracted a vendor to handle its database. Internal employees may not have the skills to do such a task but with the help of another company, NBI has nothing to worry about their database. Production/ Data Center Operations. Perhaps two industries that popularly use this service would be the banking industry and the medical industry. More specifically with banking credit or fraud operations, and, with medical, it would be with transcriptions. IT 306 BUSINESS PROCESS OUTSOURCING 101 4  UNIT 1: Introduction to Business Process Outsourcing Production Technical/ Systems Support. For this service, we would look to both providers and users; of engineering services and computer servers. Helpdesk. This is perhaps the most common service known to many of us. This basically takes the form of having a group of agents fielding incoming calls of a potentially wide variety. Some of these are inquiries on flight bookings, the status of a parcel on a trans- continental shipment, status of cable or mobile phone subscription. Software as a Service. The digital age is truly maturing at a tremendous rate, thanks to the advancements in both hardware and software. Nowhere is this most evident than in corporations. The technology is finding its way to average consumers as well. Take for an example the corporate solution applications that allow for online video conferencing or virtual classrooms involving multiple participants “calling in” from different time-zones and countries without the need for specialized hardware to view a presentation shared by a presenter who for all we know is at home but who is remotely accessing his or her files from the company server. Online or Cloud Services. If you have any of the following email accounts or a combination, it means you are online or using Cloud Services. Gmail, Yahoo, and Hotmail or Windows Live account all provide you with some form of what is now called “cloud” storage. Similarly, Apple, Android, and Windows Phone users are given access to an online storage facility. Your account profile, preferences, and settings are handled in an automated fashion by a system that is routinely maintained by programmers granted administrator status. Similarly, your account activities are not completely invisible. If you download free applications, an administrator of that service provider knows your complete download history. IT 306 BUSINESS PROCESS OUTSOURCING 101 5  UNIT 1: Introduction to Business Process Outsourcing Specific Business Processes That Are Being Outsourced There are numerous tasks companies aim to outsource as they grow their business. 1. Outsource Customer Service and Lead Generation. Sales calls are normally a matter of number, meaning that more calls equal to more leads and sales. The moment the first outreach has been performed, closing the sales can be controlled by the internal sales force. A brilliant salesperson’s skills and expertise can be efficiently utilized to handle clients and close sales, rather than just make cold calls. It might also be more effective to outsource customer support compared to maintaining a qualified support staff to handle these tasks. This is especially true for product-based companies. 2. Outsource Bookkeeping and Accounting. There are lots of benefits brought about by outsourcing bookkeeping activities. Companies can save more time for their employees so they can focus more on business. Companies also save some cash since account outsourcing is cheaper compared to employing a full-time accountant and companies have access to experts, who will ensure accuracy and so much more. 3. Outsource Social Media Marketing. Social media platforms are no longer restricted to personal communication. Nowadays, lots of companies are using social media platforms such as LinkedIn, Twitter, Facebook, Instagram, and Even Snapchat for lead generation. As a matter of fact, the famous messaging app, WhatsApp, is also getting used by companies extensively. Advertising on these social media platforms is not an easy task, and this activity will need a considerable amount of time. For instance, the company’s job does not end with posting on the platform. The company has to engage in the conversations and reply to all its users. Companies can outsource this task to one of the social media marketing agencies. They’ll have a team of well-skilled IT 306 BUSINESS PROCESS OUTSOURCING 101 6 UNIT 1: Introduction to Business Process Outsourcing professionals set aside, and their work is to grow and monitor your followers. 4. Outsource Tax Filing and Tax Preparation. Tax returns preparations are pretty time consuming and need a specific set of skills. Companies can easily find tax consultants who can lift this tax filing burden for them. Companies may use any reliable online accounting software and can simply grant them temporary access, and they’ll be able to generate the return. Tax filing and preparation services costs are pretty much standardized nowadays so you could easily outsource Service Tax, Value Added Tax, and TDS return preparation. 5. Outsource Payroll Processing. Handling monthly payrolls can eat up lots of time, meaning that keeping track of worker’s applicable tax returns, bonuses advances, loan advances, joining and exit formalities, and employee leaves may soon turn and become a nightmare for a company. Payroll outsourcing will be less costly, and a more straightforward means of filing taxes on time and paying employees. 6. Outsourcing Your Creative Work. Most entrepreneurs think that they can perform their own design tasks. Few of them can do it well, and that’s why they leave this to the experts. Companies can achieve more quality results if they opt to outsource artwork creations. This includes designing of advertising banners, letterheads, business cards, logos, website images, and so much more. Websites such as Upwork connect business owners with some of the best designers around the globe. It’s pretty affordable, and they’ll get a huge number of freelancers to choose from. In case they’re on a tight budget, sites such as Fiverr can help them out. IT 306 BUSINESS PROCESS OUTSOURCING 101 7 UNIT 1: Introduction to Business Process Outsourcing 7. Outsource Event Management. It’s better to outsource event organization activities to an event organizing agency. Right from preparations to the execution, event management can consume a lot of time. If not outsourced, companies are forced to include their workers, and this might negatively impact the firm’s productivity. A trustworthy event management firm can take away this whole burden as they have a good connection with food caterers, sound providers, technicians, and other vendors. 8. Outsource Everything You Do Not Enjoy. There are various tasks that individuals/companies simply hate doing, maybe it’s preparing your monthly MIS, or perhaps it’s writing blogs and articles. Doing activities, we do not enjoy can drain us and unpleasantly affect our productivity altogether. Even more, we have a tendency of postponing activities we do not love, and this won’t be good for a business either. 9. Outsource Customer Phone Support. One of the routinely outsourced company tasks is customer or client support; especially phone support. The cost of hiring, providing enough office space, coaching, and paying taxes can be quite high, but an outsourced call center in a nation such as India can continually carry out the task at a very affordable cost. 10. Outsource Web Design. In case your web design task needs significant innovation or creativity, it is perhaps better handled by an in-house web designer who can monitor all through the project’s development. IT 306 BUSINESS PROCESS OUTSOURCING 101 8 UNIT 1: Introduction to Business Process Outsourcing 11. Outsource Legal Services. Although no one expects an outsourced legal squad to protect their company in the court of law, other sorts of legal complications are sufficiently handled by overseas firms. Litigation support, document review, analysis/drafting, and legal documentation are all samples of legal tasks that businesses profitably and confidently entrust to well experienced outsourced teams every single day. The capability to outsource all legal services is particularly advantageous to smaller industries, which can rarely afford to employ the expert legal professionals’’ at the market rates. Large companies also normally find it more effective to utilize outsourced teams for tedious legal tasks. 12. Outsource Healthcare Services. All sorts of managerial healthcare services are also profitably outsourced by most companies around the world. These healthcare services include teleradiology, healthcare software, medical transcription, coding, and medical billing. As the demand for sophisticated diagnostics and scanning rises, it becomes more rewarding to hand over such tasks to medical professionals with the ability to command on the open market. A potential setback here (just as in tax preparations and accounting) is the fact that medical information is habitually sensitive by definition. This recommends that an extremely high emphasis ought to be placed to ensure that you only use outsourced teams with a proven, trustworthy, and reliable track record. 13. Outsource Human Resources. Human resources and employee acquisition functions can all get easily administered by an external agency. Some external firms are more experienced at checking references, screening for suitable applicants, and advertising. Using a Human Resource or employment service to manage your employee benefits is a nice move IT 306 BUSINESS PROCESS OUTSOURCING 101 9 UNIT 1: Introduction to Business Process Outsourcing since they have to stay up to date on the newest employment standards and governing laws. 14. Outsource Engineering. Virtually any type of engineering task (may it be architectural, structural, electrical, or mechanical) can efficiently and effectively be outsourced. This includes (but isn’t limited to) consulting, modeling, AutoCAD designs, and Sketches. Remember, nonetheless, the criteria needed for wisely outsourcing computer programming and web design tasks, since they equally apply to engineering. 15. Outsource Research and Development. Today's businesses outsource all sorts of research and development tasks. Every single thing from pharmaceutical research, financial research, customer demographics, and even market research is handled by overseas teams coached in the numerous methodologies of every field. The most essential task from the firm’s standpoint is finding an outsourcing firm specializing in the unique sort of research needed for the task in question. 16. Outsource Data Entry. Routine data entry tasks (such as order processing, cataloging, scanning, and indexing) are perfectly well-suited for outsourcing. A cost- conscious company will easily hire an outsourced team to execute just about every data entry task conceivable and also get the job well done with adequate accuracy. 17. Outsource Computer Programming. Computer programming is typically outsourced for similar reasons as web design. A comparatively standard programming project (such as database, calculator, or message board) can be easily and quickly completed by outsourcing teams for a couple of dollars. IT 306 BUSINESS PROCESS OUTSOURCING 101 10 UNIT 1: Introduction to Business Process Outsourcing 18. Outsource Website Optimization. These days, a decently optimized website is the basic cost of online admission. There are numerous advantages of keeping such a project in- house but you also ought to consider the advantages of hiring a professional to help you out. 19. Outsource Hiring. Lots of us post a vacancy on our websites or inform our buddies and existing employees regarding the vacant positions. In case you have a good network, you will slowly start receiving resumes. Subsequently, you’ll start interviewing these potential candidates over the weekends. What comes after that is pick-outs, background confirmations, salary negotiations and more interview rounds. You can imagine the amount of time hiring employees can consume in case it’s not done right. You can easily save yourself some valuable time by simply outsourcing the whole hiring procedure. These hiring agencies will have a database and they can speedily arrange the best candidates with the desired skills. Some of them will even offer free replacements in case a new employee resigns or leaves within 4 months. 20. Outsource Skills You Do Not Have. Most entrepreneurs start their companies based on the primary skills they possess. Bill Gates started Microsoft because he had a passion for IT. In the same way, you’ll most likely work or start an industry you feel comfortable with or have some substantial knowledge about. Nonetheless, in the long run, you will learn that an entrepreneur has no choice but to wear many hats. He has to dive into sales, marketing, and nearly every other department of the business. You might not be good at sales and marketing as you start your company since you never went to a formal sales and marketing lecture. Most entrepreneurs face such issues but the only problem is, some of them might force themselves into trying out things they do not have an idea about. In such circumstances, it’s IT 306 BUSINESS PROCESS OUTSOURCING 101 11 UNIT 1: Introduction to Business Process Outsourcing intelligent to outsource projects in need of skills you do not have. For instance, in case you do not know how a website is designed, do not waste your precious time trying to learn it. Even better, find some professionals and get this done quickly. 21. Outsource Business Applications. Every person is talking about applications these days and thus, building your business app sounds like a pretty good idea. There are Do It Yourself (DIY) app development tools available to utilize and create applications. 22. Outsource Content Writing. Content writing is the core of all online marketing strategies. Native advertising content, social media content, blog content, and so much more, are all essential components of online marketing. 23. Outsource Your Digital Marketing Campaigns. Outsourcing digital marketing campaigns to a digital marketing agency can bring about immense benefits to your business. Choosing to partner up with a digital marketing agency implies that companies don’t have to worry about gaps in delivery or staff leaves. To place it as it is, that’s the agency’s problem. Secondly, companies receive your services from a team of professionals in this particular area. 24. Outsource Video Editing. We are now in an age where every person has a smartphone, and this implies that they have the power to make videos and post them on the internet. Despite the fact that that’s ok as long as you are filming silly dog videos’ and publishing them on YouTube channels, it is perhaps not a good idea IT 306 BUSINESS PROCESS OUTSOURCING 101 12 UNIT 1: Introduction to Business Process Outsourcing when it comes to your business. Every single video posted for the clients to view needs to look tip-top. It is better off leaving this task in the hands of the experts. 25. Outsource Email Management. There are two prime reasons as to why companies should consider outsourcing email management. Email missions are critical. Every person understands the value, reach, and power of emails today. Nonetheless, this day, lots of businesses find themselves with email services that are increasingly unproductive, and inherently inefficient. The email has changed. The second reason emails have changed. In the last couple of years, it was always considered to be a regular exercise for most companies to manage their own email servers. However, this is no longer the case. Handling an in-house Email server consumes a significant amount of Network Administrator time and lots of precious bandwidth. Even more serious, once a Business’s Email service is disturbed, the risk of losing access to these mission-critical business resources is massive. As a matter of fact, lots of administrators are having a hard time keeping up with the ever-changing Email warfare of technology getting waged to fend-off spammers. In the case Email management is not your prime business focus, probably outsourcing it to a firm specializing in Email management is the best idea. 26. Outsourcing Calendar Management. One of the best and luxurious things in running your own company seems to be having an individual who manages the calendar, acting as a gatekeeper. Outsourcing calendar management tasks and scheduling tasks to a virtual assistant is of value both in terms of saving more time and bringing extra value to the company. Let’s take a look at how outsourcing calendar management can save time. Instead of spending valuable time every week setting up appointments or pursuing those who are not interested in speaking, all this time can be efficiently spent on other crucial sectors of the business. To save companies from all this stress, it IT 306 BUSINESS PROCESS OUTSOURCING 101 13 UNIT 1: Introduction to Business Process Outsourcing is good to hire a virtual assistant so they can manage all calendars. 27. Outsource Booking Appointments. Booking appointments happen to be among the tasks normally outsourced by lots of companies. Hiring someone else to do this will save the entrepreneur a big slice of time they can spend running their ventures. When done effectively and appropriately by a virtual assistant, this practice will improve relationships with clients. Appointments bookings ought to be efficiently done since an appointment- packed schedule may run mayhem on the day-to- day workday schedule. It needs to be efficiently managed, so it doesn’t eat up and waste all day’s work. 28. Outsource Manufacturing and Production. Besides being a matter of convenience for both small and big sized companies, outsourcing manufacturing and production processes is a pre- requisite for survival. Without the capability to outsource their production functions to contract manufacturers (CMs), most businesses will basically lack the economies of scale that permit them to compete with their larger competitors efficiently. Only a small number of corporations around the world have the ability to capitalize on, and regularly upgrade, the billions of dollars in personnel, equipment, and procedure technology needed to compete in a market of fading margins and shrinking product life cycles. For most companies nowadays, the trend of outsourcing manufacturing functions to companies in nations such as China makes significant sense. These contract manufacturers will ensure that the business’s products are up and running in a short period because of the extensive facilities and expertise at their disposal. IT 306 BUSINESS PROCESS OUTSOURCING 101 14 UNIT 1: Introduction to Business Process Outsourcing 29. Outsource Data Storage. Storage Service Providers (SSP) could be the solution to all company’s data management concerns. The innovation of the internet has continuously increased the requirements for both online and offline data storage. A storage service provider is a firm aimed at providing computer storing space and management. Besides the storage itself, storage service providers typically provide archiving and backup, remotely managed storage, and some will also offer to consolidate data from numerous locations to enable efficient data sharing. Clients are typically billed at a once- a-month rate and for every managed terabyte of storage. 30. Outsource Inbound Marketing. One thing when it comes to being a marketing expert is every single person thinks they can also perform your tasks. On the exterior, marketing practices look so easy, though, in various respects, it is. What’s actually tedious is getting the job done well. Inbound marketing happens to be an evolving field, and it's actually less than 10 years old. Let’s take Google Authorship, for instance. Google Authorship was an approach aimed at improving how your blog posts appeared in Google Search results. Keenly optimizing your blog site for Google Authorship was a must-do a couple of years ago. Then after a short while, Google put an end on the whole program. Inbound marketers had no choice but to come up with new means that can make content stand-out in the midst of the unlimited amount of content on the web. Outsource inbound marketing to the experts and attain the results you desire. IT 306 BUSINESS PROCESS OUTSOURCING 101 15 UNIT 1: Introduction to Business Process Outsourcing 31. Outsource Cleaning Services. Keeping the office and the entire company clean should be a full-time job. As a matter of fact, with everything invested into keeping the company sanitized (such as buying the required cleaning equipment and hiring designated full time cleaning staff workers) most people could argue that the project of maintaining a company clean is a business itself. Most companies nowadays are choosing to outsource to cleaning companies in an attempt to diminish the entire hassle of managing in-house sanitation. 32. Outsource Podcast Production. Regardless of whether you’ve podcasted for ages, or you are yet to release your 1st episode, there is an impressive chance that you have considered outsourcing as an alternative at some point. We have partnered with dozens of companies in producing their shows over the last couple of years, and the range of reasons people are outsourcing is somewhat amazing. 33. Outsource CRM integration. Customer Relationship Management is growing. The CRM software marketplace leader, Siebel Systems, reported that CRM outsourcing is growing by 20% to 23% every year. Outsourcing CRM can take distinct forms. Enterprises can pay a different firm to host their software (this can be the outsourcing firm’s software or a different vendor’s software.) Another alternative is they can pay up someone to manage the entire segments of their CRM procedures, for instance, a call center or specific client marketing program. IT 306 BUSINESS PROCESS OUTSOURCING 101 16 UNIT 1: Introduction to Business Process Outsourcing 34. Outsourcing Your E-commerce Firm. Entrepreneurs have a tendency of wearing lots of hats, i.e., accountant, customer service representative, Director of Marketing, CEO, Founder, Chairman, President, and so much more. Once you 1st launch your E-commerce firm, handling every single thing by yourself will seem more reasonable. Nonetheless, it won’t take long before you find yourself consumed and spending lots of time maintaining your company instead of growing it. Outsourcing is a USD 80 billion business in the United States alone, and that’s for a good reason. Outsourcing will free up precious time so companies can concentrate on how they can propel their company further. 35. Outsourcing Company Newsletters. Most entrepreneurs are beginning to understand the advantages of using company newsletters to bolster their relationships with customers and improve sales. Nonetheless, entrepreneurs with a full understanding of the advantages of company newsletters may still have a hard time coming up with a quality piece each time. Some might even lack resources altogether. 36. Outsource Training. There are various reasons as to why you may perhaps choose to bring in outside certified trainers (outsourcing). Companies have a huge number of workers in need of refresher training. They desire to keep workers up to date on whatever’s happening in your industry. In respect to regulatory obedience, numerous laws and organizations affect your firm. Keeping track of all their requirements might seem overwhelming, but then again there are lots of quality training programs on the marketplace you can utilize to keep your firm in compliance. IT 306 BUSINESS PROCESS OUTSOURCING 101 17  UNIT 1: Introduction to Business Process Outsourcing 37. Outsourcing Cybersecurity. There are lots of instances when outsourcing networks, data, and computer security makes sense. Some of these instances include; no ideal individual to fill the full-time role, lack of proper in- house skills and resources, not in a position to make a full-time hire due to a tight budget, have better areas to focus on the firm, so companies outsource cybersecurity to create more time for employees. Small business owners need to ensure that they don’t give cybersecurity service providers the impression that they do not understand what they need. *images courtesy of Google Images IT 306 BUSINESS PROCESS OUTSOURCING 101 18 UNIT 1: Introduction to Business Process Outsourcing LESSON 5: ADVANTAGES AND DISADVANTAGES OF OUTSOURCING OBJECTIVES: At the end of this lesson, students are expected to:  identify what are advantages of outsourcing from employer and employee’s perspective.  identify what are disadvantages of outsourcing from employer and employee’s perspective.  enumerate the advantages and disadvantages of outracing for small businesses. Duration: 2.0 hours IT 306 BUSINESS PROCESS OUTSOURCING 101 1  UNIT 1: Introduction to Business Process Outsourcing Advantages and Disadvantages of Outsourcing Every coin has two faces. And in this instance, advantages and disadvantages go both ways – to the company or the employer, as well as to the employee. Advantages of Outsourcing Resource optimization. No organization has infinite resources. It is critical in at least two ways: firstly, towards the successful completion of client requirements, and secondly with regard to ensuring profitability, growth, and sustainability. Expertise /capability. Another advantage is that; Service Provider may have more expertise/capability than the buyer. Take for instance in the following fields: Technical Support. Service providers will already have an established track record in the successful resolution of such concerns given their in- depth expertise in the related or required technologies. Examples of these companies are Convergys and Dell. Accounting. Global companies like Citi and JP Morgan Chase & Co are prime samples of service providers that execute to the highest standards with regard to a highly confidential subject matter – the financials of a client. Animation. Visionary producers and directors are not technically animators themselves, they are essentially great story-tellers who finance and guide a film to its completion. They work with animation studios or service providers who do– pre as well as post-production. Top Draw Animation is an animation firm example. IT 306 BUSINESS PROCESS OUTSOURCING 101 2  UNIT 1: Introduction to Business Process Outsourcing Leverage economies. Through outsourcing, buyers can leverage economies of scale of the Service Provider. Examples, Technical infrastructure. The service provider has a sizable and proven capacity for online storage, data processing and data connectivity. Human Resources. This does not exclusively refer to the sheer volume or number of warm-bodies. But more importantly, it refers to the associated knowledge, skills, competencies and professionalism of those human resources. Technical Expertise. This includes the skill to correctly and efficiently diagnose and troubleshoot a client’s concern potentially without the need to seek additional support and assistance from an escalation or a transfer. “Work abroad, live here”. Employees of an outsourcing company may enjoy the perk of “work abroad, live here”. Since most of the mother-companies are in foreign countries, employees are being paid in dollars. This will be beneficial to our locals given the fact that most Filipinos are really valuing a close-knit family system. Professional growth. You are potentially able to expand your business expertise as you interact in different group settings, work with professionals of different ethnicity, cultural background, and management style. This exposure and experience is a wonderful learning opportunity. Financial independence. More often than not entry-level salaries in the IT-BPM industry are significantly more attractive than entry-level positions in other industries. This holds true even in instances wherein the job function is primarily similar. Many industries aggressively incentivize their staff in sales. Often being in sales requires personnel a lot. They transport sample products and marketing materials. With the advancement of telecommunication, sales specialists can accomplish their tasks by communicating with customers via online platforms and the phone. IT 306 BUSINESS PROCESS OUTSOURCING 101 3  UNIT 1: Introduction to Business Process Outsourcing Employee Assistance. Many IT-BPM companies provide world-class facilities, amenities, and benefits that are more than what is required by the government. When the safety and well-being of the employees are at risk, many IT-BPM companies make sure that their employees are looked after. Enjoy our own food and culture. The last item though seemingly funny and simplistic is a key social activity in our culture. Eating for us Filipinos is an opportunity to strengthen relationships – at work, with friends and at home. Incentives may include the opportunity to savor your favorite dish. Disadvantages of Outsourcing Cost can be higher. Cost can be higher because providers may add a premium for risk in case processes are not well defined. Clarifying uncertainties in some processes may incur costs on the organization’s end. Buyer does not have full control of resources in doing work. The people doing the work are limited to the requirements of the job being outsourced to them. Shifting schedule. A shifting schedule with the possibility of working at night can easily be viewed as a disadvantage. However, what this scheduling opens up for many is the opportunity to pursue other activities during the day. For many members of the IT-BPM industry, this means; participating in community development initiatives, supporting charities, helping out and supporting a family venture, or simply enjoy their favorite fitness facility without the throng of other patrons who still happen to be in school or at work. These are just a few benefits. IT 306 BUSINESS PROCESS OUTSOURCING 101 4  UNIT 1: Introduction to Business Process Outsourcing Dealing with irate customers. Dealing with irate customers is not unique to the IT-BPM industry. This situation can arise fifty percent of the time in any transactional relationship. What is certain is that you will receive expert training on how to effectively handle such situations. In instances that you may require support or upon a customer’s request, your peers – supervisors and managers are committed to deliver – customer satisfaction. They will develop your skills to perform your job with greater independence. Lastly, many companies provide facilities and activities to help employees handle work-related stress. There are game rooms, break-out rooms to power nap, a basketball court, video gaming consoles, a meditation room, a clinic or infirmary, having an anti-burn out party, having sporting competitions, and many more. These are all prime examples of facilities and activities geared towards better employees’ well-being. Source: IBPAP Module 1 Fundamentals of Business Process Outsourcing 101, 2013 Pictures source: google images IT 306 BUSINESS PROCESS OUTSOURCING 101 5  UNIT 1: Introduction to Business Process Outsourcing Advantages and Disadvantages of Outsourcing for Small Business In the right context and deployed shrewdly, outsourcing can be a fantastic way for small business owners to improve efficiencies and bolster their company’s bottom line. But that doesn’t mean the practice isn’t without its disadvantages, too. Outsourcing isn’t right for every situation, and so you’ve got to think long and hard before investing time and energy in farming out work. Advantages 1. You Get More Experts. Your core team might be fantastic at a few things, but nobody is perfect at everything. By outsourcing particular tasks, companies are often able to substantially improve performance by drawing on the niche skills of experts in certain fields. IT 306 BUSINESS PROCESS OUTSOURCING 101 6 UNIT 1: Introduction to Business Process Outsourcing 2. Things Get Done Fast. One of the top reasons small businesses tend to outsource work is because it will get done quicker. If you’re working with a limited number of staff members, you can get things done a whole lot quicker by passing time-consuming tasks on to freelancers or external agencies. 3. You’re Able to Focus on What Matters. Another benefit of outsourcing tasks is enhanced freedom. By passing on supporting processes, you’ll be able to concentrate your skills on strengthening and improving the core processes that help make your business tick. 4. You Can Share Some Risk. One of the most important factors in any project is risk assessment and analysis. By outsourcing certain campaigns or processes to experts in their respective fields, you will benefit from their enhanced ability to plan and mitigate potential risks. 5. You Can Reduce Costs. As one might imagine, outsourcing piecemeal work is almost always going to be cheaper than hiring permanent full-time staff. Not only will you save time and money on recruitment, but your profit will also be extended. 6. You Can Work Around the Clock. One major benefit of outsourcing digital work overseas is the substantial differences you might encounter in terms of time zones and holidays. Although this can pose an initial hurdle logistically, once overcome it can effectively mean your business is running even while you’re fast asleep. 7. You Can Simplify Project Management. If you choose to outsource work via a wide range of specialist freelance websites and online services, you’re often provided dynamic and intuitive platforms that will help you to effectively manage what’s being done, when it’s due for submission and how it will be paid. Most of this can be automated, freeing up your time for more important work. 8. You Simplify Work Relationships. Quite a few small business teams are tight-knit groups of friends and family — which is fantastic. But when you’re incredibly close to your staff members, it can also lead to issues when work isn’t being done up to par. By outsourcing work, you’ll typically be able to minimize work relationships to simple, contractual arrangements. 9. Efforts Are More Targeted. Another overlooked advantage of outsourcing is that it enables you to plan and execute more effective, targeted campaigns and projects that you wouldn’t ordinarily be able to take on. This gives your business the chance to take new risks and experiment with different methods of exposure. 10. You Get Peace of Mind. At the end of the day, choosing to outsource with a reliable individual or agency should give you peace of mind that tasks are being handled expertly and efficiently without you having to worry or lift a finger. What could be better? IT 306 BUSINESS PROCESS OUTSOURCING 101