HOW A BEST-IN-CLASS BPO MEETS THE CHALLENGES OF INFORMATION MANAGEMENT AND DATA PROCESSING
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1 SERVICE COMPANY HOW A BEST-IN-CLASS BPO MEETS THE CHALLENGES OF INFORMATION MANAGEMENT AND DATA PROCESSING page 1
2 The tradition of business process outsourcing (BPO) stretches back more than 40 years, when cost-conscious companies first relied on third parties for HR and payroll services. Now, outsourced services stretch far beyond these processes as third parties have become strategic partners to businesses across all industries. The financial bottom line is still the chief motivator for companies that choose to outsource certain services, and technology has helped accelerate this trend even further. When people hear the word outsource, they may assume that work is going overseas. However, there are many third-party vendors that work within the United States. In the aftermath of the recession of the late 2000s, the time has never been more appropriate for American companies to look outside their walls for support with certain tasks, allowing them more time to focus on innovation and growth. As a trusted provider of information management and data processing services, Tab Service Company is doing its part to facilitate this transition for businesses with these needs. THE CURRENT STATE OF BUSINESS PROCESS OUTSOURCING Gartner found that two-thirds of organizations information technology (IT) budgets go toward operations or running the business, and not the types of innovative projects that businesses are required to invest in if they are to thrive over the long term. Business process outsourcing allows companies to rely on third-party experts to complete certain operational tasks. While the North American outsourcing market is working to stand on stronger ground, business owners are unsure if they can afford to look to outside assistance. Still, Gartner expects the outsourcing market to grow 8 percent by the end of 2013, and then maintain steady annual growth of about 6 percent for the next four years. page 2
3 WHAT ARE THE BENEFITS OF BPO? A business that has allocated certain responsibilities to a network of third parties will see immediate returns in the form of greater agility and flexibility. BPO is often a more affordable option than retaining these services in house, particularly because of the required investment in new employees. From training costs to required payroll benefits, these added expenses could make a deeper dent in an organization s bottom line. A March 2010 Computer Weekly story noted another benefit of outsourcing certain IT functions - added flexibility. Companies that retain certain IT tasks in-house must pay employees a salary regardless of the projects they re completing. Many IT tasks lend themselves to shortterm projects that can be completed on an ad-hoc basis. Because organizations tend to change structures and requirements frequently, this option of flexing of your IT requirements (by either reducing or increasing your IT requirements or by adding completely different IT goods or services to the package) can be a welcome option, contributor Jimmy Desai wrote. A business that has allocated certain responsibilities to a network of third parties will see immediate returns in the form of greater agility and flexibility. Joe Doyle told Business Reporter in July 2013 that once an organization strikes a balance with the processes it outsources, business owners will find all-year-round availability, flexible cost models, and multi-lingual capabilities across a variety of sectors, which translates to delivery of services to clients at a cost, quality and timeliness that no other alternative can compete with. page 3
4 TAKING THE NEXT STEPS AFTER DECIDING TO OUTSOURCE The tasks that your business chooses to outsource should not be those that are critical to your central mission. Tasks like data entry or scanning can be done without extensive company knowledge. Earlier this year, CNN Money reported about Mike Scanlin, an entrepreneur building online investment resource Born to Sell. Scanlin s options were to either hire programmers to design its framework for $600,000 or outsource the task to a third party for $37,000. Regardless of the savings he gained in choosing to outsource, the product was still on par with his standards. Scanlin shows how what used to be a common practice for corporations is gaining popularity among small- to mid-sized businesses. In fact, one vendor claimed that 78 percent of its respondents said that outside help continues to make them more competitive in their respective fields. HOW TO TEST OUT A THIRD-PARTY SERVICE PROVIDER These service providers deliver consistent service, meet financial goals and deliver value beyond cost savings. What many executives neglect to do in advance is research an appropriate vendor. Senior staff members should decide which tasks can be completed outside the business. There are a plethora of vendors out there that can do a variety of tasks, so staffers should spend time looking into businesses that can meet their specific needs. Because these service providers have to provide complementary support to your existing structure, do not sign two-year contracts before testing performance and the relationship, Joanna Krotz of Microsoft explained. Businesses should also begin their search for a strategic partner by considering the qualities of best-in-class third-party solution providers. In its survey Achieving Bestin-Class BPO Secrets Unveiled, Accenture found that these service providers deliver consistent service, meet financial goals and deliver value beyond cost savings. page 4
5 HOW TAB CAN BE YOUR BEST-IN-CLASS BPO PROVIDER We have been working with the most upto-date information management technologies for more As electronic document management systems become increasingly popular in corporate America, there will be a larger demand to manage digital files. For example, AIIM reported its 2013 white paper Winning The Paper Wars that 70 percent of organizations have an in-house scanning service, but only 21 percent of these offices use scanners for office tasks but not as a coordinate input to process or archive. than 50 years. Instead of losing out on the opportunities to make the most out of a scanning solution or any other information management system, allow Tab Service Company to complete a company-wide conversion for you. What Tab Service Company has above other data entry, document scanning and data processing service providers is that we have been working with the most up-to-date information management technologies for more than 50 years. Your team can commit its time toward necessary tasks and leave the non-core projects to us. If your office wants to maximize space during renovations, consider relocating the contents of your records storage room into an electronic, search-friendly database. Unlike filing cabinets, in which there is only one copy of a document, an electronic record management system enables one document to be seen by multiple staffers at once. This way, employees do not have to wait for another person to pass on the file. We also have data entry services that can extract information from handwritten forms and surveys through the support of optical character recognition. There are many information management service providers out there, so you need to choose one with the capabilities that works for your business long-term plans and goals. That partner is Tab Service Company. page 5
6 References money.cnn.com/2013/03/27/smallbusiness/outsourcing/index.html cio.com/article/737472/gartner_predicts_limited_it_outsourcing_growth_and_ Increased_Volatility computerweekly.com/opinion/moving-beyond-the-cost-benefits-of-outsourcing microsoft.com/business/en-us/resources/management/recruiting-staffing/tips-foroutsourcing-your-small-business-needs.aspx?fbid=g0m03kdvvib gxs.co.uk/resources/thought_leadership/white_papers/e-invoicinge-billing-the-catalystfor-arap-automation aiim.org/research-and-publications/research/industry-watch/paper-wars-2013 business-reporter.co.uk/2013/07/the-debate-outsourcing-or-shared-services/ fcw.com/articles/2013/08/26/exectech-bpm.aspx?page=1 accenture.com/sitecollectiondocuments/pdf/best-in-class-bpo-everest-research.pdf page 6
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