Business Process Outsourcing

Michael F. Corbitt and Associates, Ltd., for their 2002 Outsourcing Summit, recently presented research indicating that businesses chose to outsource certain operational processes for the following key reasons:

  • Reduce Operating Costs - 35%
  • Focus on Core Business - 32%
  • Create a Variable Cost Structure - 13%
  • Increase Speed to Market - 5%
  • Improve Quality - 5%
  • Conserve Capital - 5%
  • Foster Innovation - 2%
  • Grow Revenue - 2%

We would argue that, although second in above ranking, focus on core business creates opportunity for even greater effect on a company's bottom line compared to reduced operating costs. Either way, the vast majority of respondents view and/or have experience that indicates business process outsourcing (BPO) is a highly cost-effective alternative to building staff to accommodate company growth and technology adoption.

In fundamental terms, BPO is about managing operational efficiency, through automation, to the cost of relative workforce requirements. In-other-words, if a company is in business to offer people and services that do one thing really, really well for its clients, and that company is willing to work for you at a cost you canšt possible match internally, it's probably worth doing.

Our role as your partner in technology investigations is to help make the right technology strategy decisions, including assessment of BPO opportunities, toward the end goal of optimum service to your customers and value to your investors. This is what we do at Cultura Systems Corporation.