Theres been some recent coverage of the sustained rise of the Business Process Outsourcing market globally along with the impacts that the sustained growth has had upon second and third world countries where BPO services are provided. According to industry data, global spending on BPO services is forecasted to exceed $25 Billion dollars in 2013. The obvious reasons for this growth include the favorable cost benefits of BPO services in addition to a renewed ability for organizations to divest themselves of non-core responsibilities and instead concentrate their efforts upon focal areas.
With that said, there are additional ways by which everyone wins when you blend proven Accounts Payable automation strategies with BPO operations.
Here they are:
Decrease risks of Fraud By centralizing your process and utilizing technology to perform validation and reconciliation processes automatically, you can reduce the chances of malevolent activity within your Finance ranks. We discuss this at length here, but anytime you have a variety of seemingly innocuous transactions that fit a certain profile occurring, it could be indicative of fraud elements within your organization. By relying upon a third party engagement to assist you in process transformation, you decrease the risk of internal collusion and people operating in their own self interests.
Promote Global Economic Development For many countries, especially those classified as second and third world, the opportunity for BPO service providers abound due to a confluence of factors: favorable labor rates, low overhead, and increasingly reliable technology infrastructures. This is no secret, and as weve seen in the past 20 years, many major global enterprises have flocked to traditionally strong BPO bastions like India. However, because of the success of pioneering BPO centers in areas like Bangalore, Mumbai, and Hyderabad, there a slew of other countries throwing their hats in the ring to compete in these areas. Other notable nations include the Philippines (which as of 2010 surpassed India in terms of dollar volume for BPO engagements), China, Singapore, Ethiopia, South Africa, and many others. Responsible BPO providers recognize the impact that their companies can have on local economies from a cash flow perspective, but also from a personal development perspective, literally providing empowerment and training to those who otherwise may not be able to obtain instruction as readily as those in the first and second world countries.
Focus on Innovation One of the remarkable things about world class companies like 3M is their remarkable ability to innovate in products and services development across a broad representation of industries. This is absolutely trace-able back to their specific and focused re-investment of time in research and development. To quote Mike Shultz of Digital Spark Marketing, Long before Google gave its engineers one day a week to pursue their own ideas, 3M let its researchers do the same with up to 15% of their time. If more organizations had more time from their best resources to invest in strategic functions, the result would be real innovation within their process. Granted that improving the Accounts Payable process is not likely to produce a top-line revenue generating product or service, but it will create a leaner and meaner invoice processing back office, which in turn will contribute to profitable operations and pleasant customer service.
While we think adopting a cloud-based Document Process Outsourcing approach is the trend that more businesses will adopt in the next ten years, its not for everyone. One of the issues that many business leaders take exception with a BPO/DPO approach is the risk it opens its organization up to from a network security and privacy standpoint. However, there are many methods for securing corporate data and this is generally not a show-stopper for most businesses.
To learn more about Accounts Payable best practices, and why cloud based Accounts Payable software is making AP Automation a reality for companies of all sizes, check out our eBook below!