Business is always an aggressive activity. You must not be behind any competitor nor get even with, you need to be ahead. There should be balance between what you lose and gain, what you sacrifice and profit. There are a lot of strategies in business, but you need to choose the best and within your business's means. Recently, this kind of business is not like more of a trend but rather a saver to a substantial amount that a company will spend, and this is through outsourcing. Business process outsourcing has become a strategic partner to explore and innovate unto the consumer's needs. Business process outsourcing becomes a streamline of a business, which optimizes business performance. Through outsourcing, competitive differentiation in the market is also created. The growth of outsourcing has sky rocketed the business market recently.
Business process outsourcing is the contracting of business task to a third party service provider. Business tasks included are payroll, outsource financial and administration (F&A) processes, human resources (HR) functions, call center and customer service activities and accounting. The third party service provider does the tasks that are not directly the core idea of the company. The service provider manages and runs every phase of the outsourced area. Outsourcing is a money saving strategy. It saves the expense of hiring in house staff plus the high salary and benefits. These expenses are all eliminated through outsourcing. The area outsourced is the focus of the provider, any problem that will arise will be the concern of the service provider and not of the company's, hence, the company can focus on its more important area of business. The area handled is not primarily important yet very vital in the total function of the company. There are different kinds of outsourcing. When a third party service provider is contracted outside the company's country, it is called offshore outsourcing. It is near shore when the provider is in a neighboring country then onshore if it is within the company's country. Another offshoot of O is Knowledge Process Outsourcing. It includes activities that highly require skills, education and expertise to handle.
Business process outsourcing is dramatically growing. Offshore outsourcing continues to grow worldwide. A lot of companies especially the small ones are into outsourcing because of its advantages. This allows the company to hire high quality knowledge at a lower cost. This is an advantage for companies to save money and increase profits at the same time. In a very aggressive market with fierce competition, outsourcing becomes obligatory. This is gaining more without the price tag.