The C-suite and board are paying more attention than ever to the outsourcing and supply chain strategy of an organization. The global corporate services and legal teams are expected to be knowledgeable about these strategies and make sure the organization adopts the proper risk mitigations to help it survive upcoming pandemics and other black swan events.

Importance of Outsourcing in a post-COVID environment

Businesses can generate extra funds through outsourcing by cutting costs associated with non-core activities, which will open opportunities for expansion and innovation. By removing the need to recruit or train new employees, as well as the support staff (HR, admin, etc.), the outsourcing model lowers expenses while increasing occupancy costs and investment in more office space and equipment.

With a vast pool of “on-demand” outsourced labour, businesses may quickly extend their workforce without having to add more full-time workers, which would increase costs and need further investments in office space and equipment. Employers can get the most out of their present staff by using outsourcing since it generates new opportunities and makes better use of the talent they already have.

Outsourcing is an intelligent resourcing strategy, in which a business utilizes a third-party company to handle time-consuming and transactional work elsewhere. For instance, a business outsourcing provider could be based nearby or overseas, but both situations rely on the same function: a remote work model.

Key benefits of outsourcing for businesses

1. Helps improve Efficiency
   You can hire professionals through outsourcing who might not always be available in your area. Businesses operating in smaller communities, where access to human resources may be rather limited, can benefit from this. There are outsourcing partners who are experts in their line of business. Many large businesses contract with a supplier that specializes in telecommunication solutions to handle their call management systems. For instance, if you happen to be operating a business overseas, you should outsource to a firm that specializes in providing services to local companies.
2. Enabling Business Expansion
   Nowadays it is more achievable for companies to expand their business operations internationally so that they can penetrate a global market with the help of outsourcing. Your global workforce can also enter the local market through outsourcing. This is an opportunity for your business to increase its recognition on a much broader scale. Due to cheaper startup costs, you can easily accomplish your goal of business expansion. There will no longer be an obligation to cover staff relocation packages and travel costs for employees who work in international offices. Additionally, you will not have to pay for new offices to open or rent space in branches without having a physical office.
3. Comfortable Work Environment
   As it turns out, managing staff is a lot simpler when you communicate remotely as opposed to managing in person. Many workers benefit from remote work since it allows them to work and be near their loved ones at the same time. A better and healthier work-life balance is provided by the remote work arrangement, especially for employees with other familial obligations.
4. Increase in Productivity
   Outsourcing can help reduce a lot of the workload that might be placed on your team. Businesses are now able to establish and maintain very professional work environments as outsourcing eliminates the need for constant hiring and training in the primary business location. This allows employees to concentrate on what they do best rather than being overburdened with duties that are outside of their purview, which increases productivity.

Conclusion

A business can benefit greatly from outsourcing, as can global economies. Although some major hazards and obstacles must also be considered, technology can effectively fill these gaps. As technology advances, outsourcing is becoming more popular as well as essential for many enterprises.

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Have you ever felt bogged down with work and found that time is not enough to complete your tasks? Are too much administrative work and data management consuming your valuable time, obstructing business efficiency and productivity? Never get the time to focus on your company strategies or business operations? If so, it’s time to reflect on your often time-consuming tasks and processes such as data management, back-office support work, forms processing and transcription services, research work, etc. and consider outsourcing them to a professional outsourcing company. It is important to make sure that you are choosing the right outsourcing business partner to initiate an effective and collaborative partnership with them. Outsourcing has emerged over time as an incredible source of help for businesses ranging from small to large across various industry sectors. Regardless of the size of your business, it is important to create efficiencies and maximize profitability. So, how does outsourcing benefit business efficiencies?

1. Helps to keep the cost structure lean and controlled

The whole mass of both fixed and variable expenses which are required in maintaining back-office operations could be reduced or removed. This ranges from additional infrastructure, floor space and local resources for high salary costs. The solution through outsourcing would crop up the additional expenses, while getting the same tasks and assignments done for much less cost, via a cost-effective outsourcing partner. There will be no full-time salaries, benefits or expensive software or equipment. This would ultimately contribute to your bottom line and cash flow.

2. Access granted to well-trained global professionals

Outsourcing grants you access to experts and professionals from all areas you need help with. They are trained with the required skills over a period and deliver quality services to help you achieve the expected outcome. They will propose improvements to do things better as they hold expertise in their specialized streams of knowledge. This would help your business grow with new ideas and best practices while removing the weight off your shoulder on training and enabling new joiners for back-office tasks.

3. Capitalize the internal resources to gain efficiencies

Outsourcing non-core and labour-intensive work will hold up your resources to only engage in time-consuming tasks. This would hold up the management in identifying their original skillset to make sure those resources are utilized for the correct assignments in the organization which would increase the business productivity. When businesses outsource more non-core functions, they can build upon core competencies by using the freed-up time. On the same note, the employees would be happy to make a tangible impact while playing to their skillset, which contributes to higher employee retention.

4. Readiness to face and adapt to volatilities

The only constant in globalization is ‘Change’. With ever-evolving methodologies and technology, your outsourcing business partner will pave access to world-class technology, modern business practices and regulatory standards. Your business will always be up to date with ever-evolving market conditions. This would allow your business to deliver enhanced business decisions with proactivity and predictability.

5. Ability to maintain the quality of standard

If you outsource to the correct outsourcing business partner, they will ensure their work is delivered at prime quality standards with proper governance requirements. The accuracy of the outsourced partners’ work will leave the business with quality time invested in improving their core efficiencies and competencies. This would raise the overall standard of your organization and receive an edge over your competition. Having professional outsourcing partners in managing profession-specific tasks and assignments such as accounting and legal processes will ensure the standard regulations are met and protect the company against liabilities and risks.

Conclusion

These arguments should enable you to get some insights on how outsourcing your non-core yet important and time-consuming aspects to the correct outsourcing business partner can create efficiencies in your business. This gives an opportunity to overhaul your business operations and key competencies to stand out as a strong player in the marketplace. The result will be guaranteed increased business productivity and profitability.

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Business process outsourcing or BPO is identified as a valuable enabler to complete specific tasks on behalf of your organization while allowing the organizational resources to be allocated on other projects and assignments. Delegating tasks to complete on your behalf to proper BPO partners will guarantee numerous benefits to organizations of all sizes.

Business Process Outsourcing scope is growing

In the early days, BPO was limited to entry-level tasks, data entry or call centre operations. Today, the industry is continuously evolving and flourishing through services such as sophisticated financial analytics, accounting services, legal services, payroll services, architectural drawings and IT services and the list goes on. The long-accepted perception of BPO organizations as ‘budget-friendly or ‘management alternatives’ now have taken an adoption shift with larger-scale business operations and landscape.

One major decisive factor of a larger scale BPO partner is being agile and responsive to the changing expectations of their customers and prospects. Almost all businesses currently operate or even planning to operate on a global scale regardless of their size being small local, medium, or large. When businesses locate and engage with the correct BPO service provider or several service providers, businesses find it easier to respond to changing market needs.

Another emerging concept contributing to the enhanced scope is the “cloud-based” solutions to ensure the BPO service accessibility around the globe. This has transformed the interaction and connectivity practices among organizations and BPO service providers.

Inarguably, one of the main expectations in BPO operations is to contain the operational cost of an organization. The reduction of infrastructure and geographical barriers have also started contributing to the overall cost structure of maintaining a BPO. Ability to eliminate the physical overheads of staff maintenance, office space and travel are some of the key elements to bring down the operational cost which directly assists with increasing the growth and scope of BPO organizations.

Benefits of Business Process Outsourcing

The factors identified BPO scope of growth facilitators can also be viewed as BPO benefits.

The drivers noted above can also be benefits of business process outsourcing. However, several other catalysts that emerged through the BPO adoption can be identified as further benefits of BPO.

Currency of Software and Technology

The BPO service providers will have to invest in the acquisition and maintenance of the latest software, technology, and equipment. This may initially seem like a significant cash outflow for the BPO provider, however, will definitely be an investment as this cost will be leveraged over multiple clients. The model will not only benefit the BPO service provider but also the clients through the latest technology ensuring faster, efficient and quality output.

Specialization

Organizations that choose BPO service providers can maintain their edge in the industry with top talent, without having the requirement of bearing the full effect of employee overheads for recruiting, onboarding, training, and certification etc. Instead, they receive the opportunity to enjoy the services of a talented pool with expertise and specialization.

Budget Flexibility

Businesses regardless of their scale; small, medium, or large can maintain room in their budgets based on the necessity. The cost can be managed by acquiring senior-level expertise on a part-time basis.

Performance Management

If the internal performance of an organizational unit falls short, it is logical and prudent to hand over the task to a BPO service provider, rather than having to execute an internal performance management plan for the internal staff through the processes such as recruitment, training, onboarding and also termination.

Focus on Strategic Goals

Outsourcing creates perfect grounds for organizations to focus on their core competencies and competitive advantages. In other words, nobody is perfect at everything. Therefore, BPO service providers can offer their specialisations and competencies to their clients where both parties would benefit through a process of harnessing their key competencies. As a result, organizations can respond and adapt swiftly with a lead ahead of their competitors.

Diversity and Inclusion

Organizations can easily achieve their corporate goals around diversity and inclusion when utilizing outsourced resources from different geographies. Inarguably, the value added to the organizations would be significant via the different skills possessed by diversified individuals.

Useful tips for choosing the correct BPO service provider

It all starts with the common business question ‘what is the critical business problem in our organization?’. The next step is about raising key questions such as: is it related to a management or leadership issue? Can this problem be resolved by an outsider? Are the issue and the possible solution being likely to be short-term or long-term? What is the level of possibility in allowing resources through the budget?

The answers to those questions will help an organization to find the type of BPO engagement in need. If the budget situation is constrictive, consider outsourcing part-time resources/consultants. If there are management-related issues, the chosen BPO provider should have proven records in helping similar organizations to execute renewed fresh visions. If the organization requires a bigger team for bookkeeping, an option would be to find a specialized and reliable BPO service provider in accounting.

Once the needs are specified, the search for the correct BPO service provider should start through referrals, associations, professional industry groups to find certified and proven providers. Online research and published articles with demonstrated success would also help in choosing the best BPO service provider. Make sure they are a fit for the organizational needs as well as company values.

The future of BPO

Technavio, a global market research firm mentioned in one of their published reports that “beneficial aspects of BPO services are driving the business process outsourcing market growth …” at an expected “…CAGR [compound annual growth rate] of over 7%” between 2020 and 2024. In addition, the report notes that the “BPO market size has the potential to grow by US$76.90 billion during 2020–2024” and that its growth potential could accelerate.

Hence, with many benefits on its own and convenience of access, it is obvious that business process outsourcing is here to stay and will be implemented by businesses regardless of their size.

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While Sri Lanka is renowned as the ‘Wonder of Asia’ for its exotic culture, panoramic landscape views, and leisure, the country’s growth and development in the technology and services sector highlights a drift towards its GDP model. Thus, Sri Lanka is renowned for yet another exciting advancement, as Asia’s favoured ICT Centre of Excellence. According to Sri Lanka Association of Software and Service Companies (SLASSCOM), the national chamber for the BPO industry, Sri Lanka is already home to more than 300 IT and BPO companies. WNS, Aviva, CMA-CGM, IFS and Virtusa are some of the global BPO firms currently operating in Sri Lanka. Moreover, large multinationals such as the London Stock Exchange, Microsoft, Google, JPM organ and HSBC – have set up offshore business support and shared service centres in the country.

The broader Information Technology and business and knowledge process outsourcing (IT/BPO) sector defied the pandemic in 2020 whilst delivering the recorded best earnings via showcasing the resilience of the industry when almost every other industry had to take a break due to the COVID-19 pandemic. The sector’s agile nature and the faster adaptability to remote working enabled it to operate seamlessly no sooner the restrictions were imposed on travel and in-person interactions, on fear of catching the virus.

According to services exports data from Sri Lanka Export Development Board, for 2020, which were finalised recently, Sri Lanka is estimated to have received US$ 971 million from Information Technology and business and knowledge process outsourcing carried out for off-shore clients, mainly in the West. This is an 8 per cent increase in comparison to the year 2019. Inspired by the recent performance and the climate favouring the technology industry, authorities have set an ambitious target of US$ 1.75 billion in revenue for 2021.

Services Offered in the Industry

The industry extends well beyond the traditional practice of software development centres, large-scale call centres or transaction processing centres. With an impressive concentration of internationally certified accountants, Sri Lanka-based firms have taken a lead in providing sophisticated financial analytics and accounting services to clients around the world. Offshore legal services, medical diagnostics, and architectural drawings are some of the other long-standing professional services which are already tapping into the country’s BPO market. Inarguably, Sri Lanka is a knowledge hub, exporting its human capital and skills to the world; the country has been exporting managers, engineers, doctors, and other technicians to run tea plantations, apparel factories, medical clinics, and other complex operations for many years. Currently, with the blessings of IT, global companies and customers can tap into these professional skills from anywhere in the world.

Why Choose Sri Lanka as your Competitive Outsourcing Destination

A leading global management consulting firm, ‘AT Kearney’ ranked Sri Lanka 14th in the global services location index calling the country “one of the hidden jewels in the offshoring space”, by stressing the country’s potential as a rising star. The majority of these BPO jobs are based in Colombo, which was ranked among the Top 20 Emerging Cities list compiled by Global Services magazine. Hence, the country is identified as highly competitive for BPO investments from clients around the world due to several factors.

Strong Education System

Sri Lanka annually releases qualified young professionals through the vast structure of higher education. The list goes on from state owned universities, global professional bodies, vocational training centres to private and affiliated universities. Some of the young professionals harness their skills via foreign universities in countries such as the UK, USA, New Zealand, Australia and seek employment from the home country, Sri Lanka. Some of them are graduates from the finest Australian institutions, such as Curtin and Monash.

Amazing Work Culture

Sri Lankans are known to be supportive, friendly, and courteous. The professionals are eager to learn and innovate while working hard to meet goals. Employees support each other to make sure their colleagues are up to speed, while also maintaining healthy competition within to ensure the expected output is achieved beyond expectations.

Training on Organization Culture

Sri Lankan outsourcing companies respect and understand the importance of different organisational cultures of clients from varying industry and geographical backgrounds. All employees will go through comprehensive training to ensure they are acquainted with the values, expectations, and culture of their clients. The major focus would be on enhancing soft skills such as communication skills, emotional empathy, time management and leadership traits.

Up to Date on the Latest Technology

Foreign investments, the facilitation of advanced higher education and a strong telecommunication network have enabled Sri Lanka to keep updated on global technologies. Whether it is a simple update to existing software or the development of brand-new technology such as cloud computing, outsourcing companies in Sri Lanka keeps abreast with the latest developments in rapidly changing technology.

Large Talent Pool

Sri Lanka claims one of the best education systems in the South Asian region leading to a large talent pool consisting of young, skilled professionals. Having a literacy rate as high as 92%, which evidently cannot be matched except for a few countries in the region. Sri Lanka has the highest concentration of UK accredited accountants outside the UK itself, with 50,000 new accountants per annum. The number of IT professionals remains high, with over 30,000 new IT professionals graduating per annum. Such fresh graduates, as well as experienced professionals, prefer the exposure to an international working environment, make perfect candidates for outsourcing work.

Conclusion

We live in a world with a suite of options. Outsourcing has united and brought in exchange of skills and much more. There have been discussions with concerns raised on outsourcing projects to other countries. Nevertheless, making smart choices in choosing not only the best outsourcing partner but also the proper geographical country will add tremendous value to clients. The drastic growth of technology and more has been contributed significantly by people around the world doing what they do best. Sri Lanka is one such geography of a smart outsourcing destination.

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