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Innovature BPO at Accounting Business Expo 2023, Australia
Sebastien Thillaye, our Director of Growth presenting at the Expo
Business Process Outsourcing (BPO) refers to hiring an outside company to perform in-house tasks. This includes everything from Customer Service to Accounting to Marketing. Outsourced services are often cheaper and faster than doing things yourself, making them attractive for businesses looking to save money and improve efficiency.
BPO has become more common in recent years because outsourcing allows businesses to focus on what they do best while letting others handle the details. This frees employees to work on higher-value tasks, such as developing new products or improving existing ones.
The key features of BPO are flexibility, cost-effectiveness, speed, and availability of the BPO workforce.
Accenture, IBM, Infosys, Mphasis are among the top BPO companies providing their services to innumerable global organizations.
This is a map of BPO or SSC from an American perspective. Obviously, nearshore outsourcing is still very popular, in Central and South America. The cost might be on the high end but they are in the same time zone and the culture has a lot of similarities.
In Australia, it is mainly outsourced to India or the Philippines, but Vietnam is booming in that sector and represents now 5% of the Finance and Accounting Outsourcing being outsourced from the US.
General Accounting
Accounts Payable
Accounts Receivable
Bookkeeping
Financial Planning and Analysis
Accounting Closing & Reporting
Payroll Processing
Audit Services
Treasury/Cash Management
Tax Services
Asset Management
Lack of control
Negative impact on existing onshore staff
Data protection and confidentiality risks
Turnover
Financial and reputation risks.
Less flexibility
Outsourcing process
Performance management
More resources
Reporting
BI
Automation
Cost savings
Accounting system integration
Identifying errors
Ticketing management
Training and backup solutions
![[Newsletter] Business Process Outsourcing (BPO): Strategies for decisive advantages Part 2](https://innovatureinc.com/wp-content/uploads/elementor/thumbs/businessman-analyzing-company-financial-report-with-augmented-reality-graphics_34141-360-psd2kkx0qugm9942idu8pw1iq2mfpwav7mwb61ec1c.jpg "[Newsletter] Business Process Outsourcing (BPO): Strategies for decisive advantages Part 2")
Benchmarking is indeed important to create added value for your business. Most of the SMEs we talk to don’t have any benchmark or very little information to provide. One of the most popular reasons for this is the belief that they are their own organization, and hence, do not need to emulate any other organization.
Hence, when they are willing to make the transformation to their business because they want to scale up, because of a bear market, or with what happened with COVID-19, they are having a hard time assessing what they should outsource, retain, or automate. They have a rough idea but it’s still very blurry.
Level of efficiency
Level of effectiveness
Standardized process
Level of management required
Level of automation in place
Here is an example for the efficiency. You can see the suggested number of full-time employees in the accounting department in accordance to the company’s annual revenue.
Basically, it comes down to the volume of transactions. Although, a $20M company may have more transactions than a $100M firm. It depends on the complexity of the underlying business. So take those figures as an
example as they might not exactly apply to your company.
E.g Level of efficiency benchmark
Sources: https://www.iqbackoffice.com/ The 2021 McKinsey Global Payments Report
Once you know what you need, you are now looking for a BPO provider and start listing and assessing some of them. Here we have picked 5 questions that we believe you should be asking
the BPO provider in order to make your selection.
If they can answer and provide the properinformation quickly it’s probably a good one.
You have now selected your BPO provider and you want to refine your choice here are the 3 main aspects to consider when working with a BPO provider as per our clients. This is part of the onboarding phase but also as the projects are already running.
The selection of the resources
Need to have all the resources selected by the clients upon CV at least and/or interviews
The training
The BPO should have a TL who can gather the knowledge and train your resources in case of ramp-up.
The Communication
Frequent communication, availability and transparency. Partnership on not just executing tasks. Building trust.
Why Innovature BPO?
In addition to the tech savvy talents servicing your company, Innovature is ready to deploy new technologies and tools that help enhance, standardize processes, set benchmarks and optimize productivity.
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