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Offshoring: Strategy Mapping over Cost Reduction

by: Sarah Joson

Tuesday, June 3, 2014 |

A research created by India-based Sundaram Business Services indicated that a large number of companies that use business process outsourcing (BPO) are more motivated to outsource to maximize business strategies and not just to reduce costs.  

Directors of companies using BPO services were surveyed by Sundaram and indicated that access to scale and faster processing is more important to them and their business than lower cost.
 
Meanwhile, Harish Rao, Global Head of Business Development at Sundaram Business Services, said it is a misconception to say accounting operations use offshoring to save on costs because to other professional services firms, BPO enables them to drive growth. That being said, Rao pointed out that the idea of BPO equates to saving on cost is becoming a thing of the past.
 
The report also highlighted Accenture’s 2012 Research Report that said it is possible that successful organizations are more focused on improving the business, and could be less motivated by costs when it comes to using BPO.
 
Sundaram also mentioned that although the concept of BPO in newspapers and magazines is mostly about cost reduction, it is clearly not the case in professional services because in reality, strategy development and improvement have more bearing. 


Source:
http://www.moneymanagement.com.au

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