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What Is Business Process Outsourcing?
Business process outsourcing (BPO) is the practice of contracting a specific work process or processes to an external service provider. The services can include payroll, human resource, accounting, purchasing, call center, data recording, social media marketing, customer support, and more. BPO usually fills supplementary — as opposed to core — business functions, with services that could be either technical or nontechnical.

BPO first seen as a formal business strategy in 1989, outsourcing is the process of hiring third parties to conduct services that were typically performed by the company. Often, outsourcing is used so that a company can focus on its core operations. It is also used to cut costs on labor, among others.
Why Do Businesses Outsource Processes?
To decrease costs: Outsourcing cuts down on costs for in-house labor, particularly for staffing and training, and for the work space to accommodate local employees. Outsourcing enables businesses to use variable-cost models, like fee-for-service plans, instead of fixed-cost models that are required when retaining local employees.

To concentrate on key functions: Outsourcing allows businesses to hone in on their main offerings instead of company functions that aren’t directly tied to their core processes. For example, when outsourcing, the company won’t have to monitor the payroll accountant’s performance. Rather, it can focus its energies on highlighting its business differentiators and maximizing overall growth. In turn, these actions can boost a company’s competitive advantage and enhance its interactions with the value chain. Ultimately, the company can enjoy improved customer satisfaction and increased profits.

To achieve better results in noncore functions: Outsourcing companies specialize in what are considered noncore functions of other businesses, delivering world-class capabilities for its clients. In fact, an outsourcing company that invests in specialized processes and technologies can deliver cutting-edge breakthroughs to its clients. For example, a gaming design company may not want to pay for the latest payroll program on the market, but an outsourcing business that offers payroll services would likely make that investment to benefit its own performance, as well as that of its clients.

To expand their global presence: Some outsourcing companies can serve customers in multiple languages, around the clock, thus relieving the local company of the responsibility. Outsourcing companies can leverage their presence in multiple countries and keep the local company’s redundant divisions to a minimum. For example, WNS Global has 37 “delivery centers” across the world and specializes in business process management.

To enable flexibility: Companies that outsource their noncritical functions can act more quickly and more efficiently when managing the risks associated with introducing new products or services. They can also reassign their internal resources to more critical functions to help ensure better coverage and allocate responsibility.

To improve speed and efficiency: Companies that outsource processes are opting to let specialists handle those tasks, thus saving time, improving accuracy, and increasing their capacity. For example, a BPO that specializes in records management can automatically index documents, making them available for retrieval and keeping a company in compliance with legal requirements. This replaces manual data entry and storage.
What is an Example of Business Outsourcing?
Most business owners delegate authority to outsourced specialists when it comes to recruitment, temporary or contract employees, accounting, human resources, payroll, bookkeeping, customer services, office administration, facility management, minor purchasing, maintenance, cleaning, transportation, advertising, website development. This helps enterprises to focus most of their resources on the main activity.
What is Human Resource Outsourcing?
HR outsourcing is a contractual agreement between an employer and an external third-party provider whereby the employer transfers the management of, and responsibility for, certain HR functions to the external provider. Many types of HR outsourcing options are available to employers.
Outsourcing HR services helps streamline significant HR activities such as compliance, payroll and employee administration. When companies outsource HR services, they definitely get more time to focus on profits and other core business activities.

The following are some of the needs of HR Outsourcing
 
-        Enabling businesses to focus on core operations
-        Delivering cost savings – whether direct or indirect
-        Helping to create a stable, cost-effective operating platform
-        Transferring focus from internal processes to achievement of business goals
-        Ensuring compliance with legal, regulatory and best practice re­quirements, and
-        Transferring risk and liability for people issues.
What Payroll Outsourcing Means?
When a business delegates a portion or all of its payroll operations to a third party, it's known as payroll outsourcing. In addition to running payroll, full-service providers typically help with tax reporting, regulatory compliance, data security and unemployment claims.

With payroll outsourcing, you can leave all the heavy lifting to the provider's payroll experts. They are responsible for things like: Making sure payroll processes and pay comply with the latest legislation. Calculation of payments including statutory payments like sick pay and maternity pay.
What Out Staffing Means?
Simply put, out staffing can be defined as follows: You hire professional employees who keep working at their regular workplace, but you're the new employer. Roughly speaking, these are professional and non-professional staff who work on the tasks you assign them.

The out staffing service provider takes over the human resource and payroll management.

There are two models of out staffing. The first one is called cost model, when the client pays fixed amounts of money per person, and the company manages this money. It pays the person at its own discretion, including bonuses, which may be called hidden HR management. The second one is called “the cost plus” – the customer knows how much he or she pays to a person and also covers all additional expenses, including holidays, taxes, bonuses, office, equipment, and the company’s margin is also included here. The latter is a more open model, as the customer fully participates in the process. Therefore, there are less risks for the client and, at the same time, more power.

Out staffing is often considered a part of outsourcing, but it is not so. Out staff meaning is basically signing a long-term contract to receive professional support in a particular field for a long period of time. It allows to enhance the efficiency of certain activities and, at the same time, to cut the company’s costs.
What is Accounting Outsourcing?
Outsourced accounting is a service which provides a full, accounting department experience for small businesses. An accounting department handles the day-to-day transaction coding, accounts payable, accounts receivable, payroll, management financial reporting and many other services.
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