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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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