How much can you gain using HR outsourcing?
It is a common practice for enterprises interested in BPO to prepare with a prospective outsourcing partner a document based on Total Cost of Ownership (TCO). TCO is a financial estimate of a company’s assets, including costs involved with gaining these assets and maintaining them. The document spells out all business process related costs and juxtaposes them with costs of the same process after outsourcing. Thus, evaluating costs generated by IT systems, including servicing, security, software and hardware updates and personnel training, becomes easier.
Companies may consider outsourcing as an expensive solution. Expenses related to system service and maintenance along with regular monthly fees are perceived as an additional cost. However, even without outsourcing a company would have to bear costs of IT specialists’ training, indispensable software and recruitment of system administrators.
These costs can be avoided in two ways:
- complete elimination of an IT system support or
- outsourcing specific processes where an outsourcing partner bears costs related to training, IT equipment and personnel.
Nowadays, running a business without any IT system seems to be completely out of question. The outsourcing option has many advantages to it and it is worth consideration. If providing IT services is not a core business of an enterprise, maintenance of IT equipment will generate substantial costs. In case of using BPO services based on advanced IT systems, these costs will be relatively smaller and the quality of rendered services will remain high.
The TCO method will clearly define IT related costs and savings that outsourcing can lead to. While preparing the TCO financial estimates, intangible benefits need to be taken into consideration as well: confidentiality of data, freeing of resources within a company and quality of delivered services. Moreover, on top of BPO services, some companies offer additional consulting services for clients applying for the EU funding.
