Customers in communication with remote teams report frustrating experiences: offshore workers don't always speak the customer's language and can't answer simple questions. As any business owner knows, the company's first impression is critical: the company is only as strong as its weakest link.
Why high-growth businesses like business process outsourcing
Outsourcing the company's essential accounting and bookkeeping, and other office administration tasks, makes good financial sense! Engaging a third party company to organize and maintain the company's invoices, receipts, and financial records is cost-effective and efficient.
Capital spent to engage full or part-time employees may ultimately cost the company money better used in growing the enterprise. Renting office space is also a major expense for a new business.
Take a look at what hiring an administrative, accounting or bookkeeping employee costs the average employer, according to PayScale.com:
- On the low end, a full-time bookkeeper's salary is approximately $29,289 per year
- If the business hires an adequately experienced staff accountant, she will earn approximately $38,489 per year. Depending on the business's market and industry, the staff accountant's salary may increase to $50,756 per year
- A "typical" office administrator will cost the business about $40,000 per year
Embracing a BPO model saves money. Finding the right partner is always the greatest challenge!
Finding the right BPO partner
Authors Ilan Oshri, Julia Kotlarsky, and Leslie P. Willcocks of "The Handbook of Global Outsourcing..." (2011) report that more companies are using BPO resources every year. The annual growth of outsourcing business processes, including accounting, bookkeeping, finance, human resources, and information technology, is one of the best ways for a company to conserve capital. The costs of hiring and training employees are thereby vastly reduced.
However, the authors note that many outsourced relationships don't live up to the business owner's expectations. Poor vendor quality and rising costs of services are frequently cited reasons for ending the BPO engagement. In addition, the remote location and possible language or cultural differences can affect the business's ability to bond with the BPO team.
Continuity of staff, vendor reliability, and the ability to meet with the BPO provider face-to-face is part of growing the relationship. Costs of traveling to a remote location are prohibitive for many small and high-growth businesses.
Small business solutions in the U.S.
Fortunately, growing businesses can find small business solutions providers right here in the U.S. Depending on the company's location, finding a local or regional BPO provider is best practice. The ability to meet with the services provider on a regular basis is the first step to growing a successful, cost-effective, and long-term relationship.
Like all relationships, knowing the business solutions provider can and will make a difference. Regular meetings with off-site resources allows the business owner and provider to develop a meaningful business partnership.