Tips to Make Business Process Outsourcing Profitable |

Business process outsourcing has recently become much more of a pronounced trend and is evident in a wide range of companies of all sizes. The reasons for turning to the use of outsourced services vary greatly from one company to another. Some businesses are looking to achieve economies of scale, while other organizations would like to access things, such as a complete technology infrastructure, without having to build their own.

For other companies, their primary motivation in utilizing process outsourcing is to attain quick access to specific expertise and use the experiences and strengths of the company that is providing the outsourced projects and services. This allows each company involved in a large-scale outsourcing project to focus on their own strengths and capabilities, while outsourcing their weaknesses to another company that excels in that particular function. Many times, unique business alliances form using this strategy and sometimes a pair of companies will outsource various services to one another.

There is no lack of examples of the ways in which companies have made use of business process outsourcing over the years. A vary common example is corporations making use of travel agencies to take care of all the details of their business travel needs. Relying on travel agencies not only puts the burden of the details on the agency, but often results in savings because of the expertise and connections that these agencies have in procuring the best prices on business travel.

Another common example is the outsourced handling of employee benefits and payroll services, and is also very common when it comes to accounting functions. In the midst of the internet boom, many such outsourcing service providers developed packages specifically designed to meet the needs of the start-up internet companies.

Strategic sourcing, procurement, information technologies, inventory management, marketing and advertising, logistics, distribution, customer service through outsourced call centers, and subcontracted manufacturing functions are just a few of the additional business processes that are outsourced on a regular basis by many organizations. Often companies will start by outsourcing just one function, but find the practice to be so beneficial that they expand to outsource additional functions as they experience growth or as part of an expansion strategy.

When arranging for strategic business process outsourcing, finding the right outsourcing partners is of paramount importance. The companies that provide various outsourcing services must be able to effectively demonstrate that they have the required expertise and methodology in place. They should also have a strong positive reputation and should be willing to provide references that can attest to their capabilities.

In addition, it is a prudent practice to look for the value-added services that are offered in conjunction with the outsourcing services. For example, in situations when a company wishes to outsource inventory management, or are looking for a company to manage supplier networks for them, outsourcing the entire process involved can be invaluable for smooth project management from beginning to end.

Another aspect that should be remembered is that an organization cannot improve what is not measured. In order for business process outsourcing to be viable, strict guidelines must be put into place in the outsourcing contract, in terms of expected service delivery and performance levels.

Video Conferencing For Small Business |

Video conferencing is a viable solution that an increasing number of small companies with global vision are using for expansion. Small business owners are replacing expensive business travel with technology that connects them with their branch offices and international clients.

Cut Down On Business Travel

The bottom line is that as travel budgets are slashed the money saved can be moved to purchase video conferencing systems. This economical solution delivers a powerful combination of results that begins with reducing the cost to do long distance business. The second factor is the opportunity to expand globally. With the advances in internet technology no longer are you limited to building your business in your own “back yard.”

In the small business arena the timing could not be better – in a climate of growing concern for budgetary expenditures and the need to grow the business in a streamlined effort it opens the doors to possibilities. Video conferencing is an answer to strengthening global connections while minimizing, and in some cases eliminating travel costs.

High speed internet allows small business to transcend global borders. Using relatively inexpensive video and audio equipment, conferencing software and a high speed connection you can conduct live meetings with your business associates and clients from multiple locations. Using a microphone and a camera you can hold corporate planning sessions, sales meetings, training events and conferences with customers in real time over the internet.

The technology of video conferencing ensures the best reach and value from multi-point client interactions possible. Add to it the additional benefits of high speed connectivity. This allows you to implement e-commerce applications on your website, share and collaborate on files via intranet and extranet and use VoIP (voice over internet protocol) communications systems. Technology has erased the concept of distance and inconvenience. It gives your small business the competitive edge with the right information being passed on at the right time.

By doing less travel, you are able to spend more time on productivity and organization for your business.  It eliminates the cost of lost productivity due to down time. Today, with a laptop computer and mobile communications devices, it is just as easy to serve the needs of your clients from any point on the globe.

Invest Your Loan Money Wisely

When you are making your plan to launch or expand a small business, take the time to research the availability of time and cost saving technology that permits you to divert your business funding to areas it could have a more impactful return on your investment. A business loan is an investment. It’s money you use to increase your productivity and profit margin. Maximizing every dollar you sink into your small business is one of the elements to staying on track with your financial planning.