With the various technological advances made nowadays, it is definitely no wonder that globalization is a hot, rising business trend, with no definite end in sight in the near future. People are connected easily regardless of distance and time constraints. With just the click of a mouse, one can readily talk to a colleague miles away from the main office.
Riding the wave of this trend, companies have also developed a new strategy in trying to curb down overhead expenses in whatever way possible. This is where outsourcing some basic office functions come in, or more formally known as Business Process Outsourcing (BPO).
Business Process Outsourcing (BPO) is the practice of obtaining the services of a third party provider which is contracted to perform specific duties and functions on a company’s behalf. The main goal of BPO is to “free” the company from focusing on the daily administrative trials and instead, focus more of their attentions on reaching the organization’s goals.
Accordingly, there are two well-known primary types of BPOs. The first is called front office outsourcing, wherein technical support, customer service, marketing and advertising of the company’s products and services are handled by the third party provider. The second type, or the back office outsourcing, includes billing, logistics and human resources. Likewise, this is where payroll services outsource is also classified.
There are a lot of reasons why companies eventually opt to use third party organizations that can provide them with reliable payroll outsourcing services. One main factor is to reduce overhead costs. Oftentimes, companies may review their overhead expenses and later realize that their payroll processing costs can be significantly reduced by obtaining the services of a BPO instead of keeping up their own accounting personnel. With the use of a payroll services outsource company, employers are finding it lessens their overhead costs significantly.
Handling one’s own payroll is, at times, hard work and requires a lot of meticulous checking and double checking of timesheets and other related forms. This gives the company less time to fully focus on their organization’s main goals since time is eaten up by trying to determine inconsistencies and deficits in their payroll system. Outsourcing their payroll functions ensures that everyone in the organization is freed of this tedious task and instead, will now be able to better focus their time and energies in meeting their organization’s goals.
Government usually issues new proclamations regarding withholding rates, taxes, forms and other similar items. In most cases, companies simply do not have the time, or the expertise, to be fully updated on these changing requirements. By acquiring the services of a payroll services outsource company, one can also be sure that their financial obligations and payments are always up-to-date of the latest government regulations and procedures.
These are just some of the advantages of outsourcing one’s payroll functions to a BPO organization. One simply has to look at the major pros to be fully convinced of this new time-saving business mechanism.