Managing funds with your Business Process outsourcing partner
Posted on: August 7, 2012
Tags: bpo, Business process Off-shoring, business process outsourcing, Outsourcing
One of the main reasons for getting a business process outsourcing partner would be the cost savings. Many companies believe that they would definitely be able to streamline their expenses and operate more efficiently with the help of business process outsourcing.
While this is true, the savings would not come automatically. You would definitely have to manage your funds for this to come true.
Since managing funds is not the strong suit of many companies, many are in the dark when it comes to it. To help them, here are some factors that they should keep an eye on.
Keep track of the exchange rate:
When you are engaged in the Business process off-shoring to other countries, you would usually deal with another country's currency. As such, you would need to keep track of the exchange rate to see if you can save some money by outsourcing or if you are already losing out because of the economy.
You would need to monitor the current financial situation and check if it is feasible to maintain your Business Process outsourcing partnership. This is especially true if you are negotiating an extension of your contract.
Check for redundancies:
When you are outsourcing, there may be some tasks that you are currently doing that are already quite redundant. This would be true, especially for some of the clerical tasks your company used to do in the house.
You may want to check for these redundancies and eliminate them by either letting go of some employees or reassigning them to maximize the salary you are giving to them. Of course, you should understand that it is not a simple price comparison between cheaper salaries. There may be some advantages to keeping some of your older staff, so you should think about your employee movements before pulling the trigger.