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The
hottest area for business process outsourcing (BPO)
consideration among midsize businesses (MSBs) today
is back-office administration – human resources,
payment services, finance and accounting, and administration.
The ability to offload mundane, day-to-day tasks is
a huge benefit and the primary rationale in the pursuit
of BPO. In recent user studies, 46% of MSBs stated
that they are either outsourcing or planning to outsource
a business administration process.
A
common refrain from MSBs considering BPO is the need
for services that “help me focus on my core
business.” Many of the MSBs that Gartner speaks
with are increasingly saddled with regulations such
as union-mandated benefits, HIPAA compliance and Sarbanes-Oxley.
Competent BPO vendors can be relied on for regulatory
compliance and the risk management that entails. A
solid, back-office BPO value proposition from a reputable
vendor can let you focus on priority #1: your customers.
For
midsize businesses, it is important to evaluate BPO
by starting with one function, and gauge vendors’
abilities to provide additional services, as needed.
After establishing a comfort level through use of
back-office BPO, you should consider whether further
outsourcing of inter-enterprise processes such as
procurement or marketing is right for your business.
In evaluating BPO vendors, focus first on the vendor’s
track record:
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How
long have they offered BPO services? |
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How long have they been operating in your industry,
or the MSB sector? |
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How has the vendor been assisting reference customers
from an industry-specific standpoint (if applicable)?
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Some back-office processes,
such as payroll, do not necessarily require a vendor
to have strong industry knowledge, while for front-office
processes such as marketing, they are critical. For
newer or startup vendors, a strong commitment to the
midmarket and BPO in general must be substantiated.
If it’s a privately held company, ask for specific
details on their funding and venture capital backing,
as well as their plans for business development in
the MSB space
If
you’re designing a BPO strategy for your midsize
business, you can benefit from the experience of your
peers, evaluate vendors,
and glean expert advice from Gartner analysts at Midsize
Enterprise Summit. Click
here to learn more.
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