November 19, 2011: It is quite accepted that outsourcing business functions to outsourcing service providers is meant to cut cost. But cost savings is not the only driving force that motivates companies to outsource their business functions. Now companies have started to consider it as a means to make money for the business.
In the case of companies with a clear expansion strategy, the human resource department will look for means by which BPO can assist is achieving the desired growth level. Such moves acquire significance when the companies develop business abroad. The major problem that many of the companies face is with the legislations and rules and regulations in the foreign countries. As a result companies go for outsourcing which relives them off the effort in creating the necessary infrastructure in house so that they can concentrate on core issues to grow the business.
In addition to supporting the clients business in the new markets, outsourcing service providers can help them to improve on areas that will drive growth of the business. For example outsourcing certain business functions will help organizations to recruit new staff, who will meet the requirement of the organization or to give proper training to develop the skill s of the existing employees.
According to Jill Goldstein, senior manager, HR outsourcing, Accenture, expanding across the globe with the help of global delivery model and by making use of proven and effective processes will help in making benefits other than cost reduction. Organizations experience a revenue growth of 1 per cent to 2 per cent with outsourcing HR functions to HR outsourcing providers in order to improve the workforce performance. In the case of HR business process outsourcing, it helps the companies to create a competitive advantage by forecasting the future requirements of employees and taking necessary actions to fulfill those requirements. It will also help in aligning the HR strategy with the business strategy.
Company like Capgemini offers services to clients that will equip them with global capability which is often difficult for them to attain without outsourcing in the case of operating in different countries. Capgemini offers global services to their clients, which are tailor made for each county with different sets of rules and regulations. This helps the clients in reducing the time and cost involved in developing the necessary infrastructure, irrespective of the country. Thus clients will be able to expand across the globe without much effort and trouble, and there by expand their business.
According to statistics, outsourcing creates revenue of 207 billion British pounds in a year which form approximately 8 per cent of the gross domestic product in the United Kingdom.