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What is BPO?
What are the non-core activities that are currently being
outsourced?
What does KPO stand for?
What does finance and accounting outsourcing mean?
How does accounting and outsourcing happen?
Isn't there a data security issue risk in outsourcing?
What is BPO?BPO stands for Business Process Outsourcing. Major
Organizations in the US and Europe are outsourcing their
back office and non critical operations to India to save
costs. E.g. accounting processes like bank reconciliations
and invoice processing for a lot of huge companies are being
performed in India
What are the non-core
activities that are currently being outsourced? The choice of non core activities being presently outsourced
are constantly expanding as companies realign themselves to
be internationally competitive. Non core activities at
present being outsourced including accounting, financial
services, customer care, payroll, research, basic design and
legal services.
What does KPO stand for?
KPO stands for knowledge process outsourcing. Progressively
more BPO is getting differentiated into stratum based on the
level of skill and knowledge required for the job. As one
moves towards KPO, the employee talent levels necessary for
the processing increases. Some examples of KPO include
business research, financial modeling, sales, accounting
exercises and legal research among others.
What does finance and accounting outsourcing mean? Finance and accounting outsourcing refers to outsourcing of
accounting processes like accounts payables processing,
invoicing, accounts receivables processing, bank
reconciliations, general ledger maintenance, fixed asset
accounting, finalization of accounts, financial reporting
and filing of tax returns.
How does accounting and outsourcing happen? We receive resource documents like scanned invoices, bank
statements, cheque slips, and intermediate accounting
statements depending on to the outsourced processes. These
documents are after that stored on our server farms and our
Indian based staff accesses our server farms by remote
access. The final production is then uploaded back on the
server farms and the client is contacted when the assignment
is completed.
Isn't there a data security matter workplace in outsourcing?
Multiple steps have been taken to make sure high data
security at each phase. Remote access is done using a
secured online connection (128 bit encryption, similar to
the technology used while processing online transactions).
Further extensive security measures are taken at our
workplace.
Reasons for Outsourcing?
Improve company focus
Gain access to world-class capabilities
Accelerate re-engineering benefits
Share risks
Free resources for other purposes
Make capital funds available
Reduce and control operating costs
Take advantage of resources not available internally
Handle a function that is difficult to manage or out of control
Outsourcing is not just a quick attach, but should be a
vital part of a long-term strategy. An organization should
analyze its core competencies and judge outsourcing
everything else. With talent hard to come by, outsourcing
may be the only way to get talented, limited resources. When
people are overworked and overqualified, outsourcing may be
a best way to keep employees by not requiring them to
perform work for which they are overqualified. Outsourcing
could be used to increase confidence and thus productivity..
Outsourcing may make sense when customer necessities surpass
the provider’s ability to meet and exceed those
requirements. It could decrease the hassle of providing a
non-core service. Or when a company wants to minimize risk
while still achieving its development goals. Outsourcing may
make intellect as protection against natural disasters.
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