Business process outsourcing

Business process outsourcing (BPO) is a batch of services that a company delivers to another company in the administration field. A third-party vendor takes responsibility for administrative tasks such as accounting, payroll, signing contracts, and staff motivation, while the company’s in-house team focuses on the core functions. The set of delegated tasks varies depending on the company’s structure and business process peculiarities. One company can outsource all HR responsibilities, while the other would prefer to delegate only payroll. While making up a list of functions to outsource, managers consider financial, time management, and organizational issues. The main idea rests on effectiveness: you delegate when it’s cheaper, or you know that a partner will do a job better.

As we mentioned above, there isn’t an ultimate list of tasks worth assigning to an outsourcing partner. However, the functions which the companies eagerly delegate have common features:

• These functions are vital, but they rather support than benefit directly. An IT company can’t manage a business without accounting, however, a company doesn’t deliver accounting services to the market.

• Approaches and tools to deal with these tasks are relatively typical through industries. Hence, for a third-party vendor, there is no need to understand in detail how the market works in a particular niche. Within the same country, an employment contract in manufacturing and one in health care have some similar clauses, since the legal basis is common. The onboarding steps are alike as well.

In the IT industry, companies have used the outsourcing practice from the outset. The reason is the high development pace and, for startups, a strict budget. IT companies tend to concentrate on the product’s maturing, not everyday paperwork. So, it’s a matter of rationality to pass on the routine responsibilities to a partner and move into high gear in product development.

There are two services types within the BPO model:

• front-office operations deal with customers; in IT companies, sales departments and customer support are responsible for these tasks;

• back-office operations make a background for a smooth workflow; they include accounting, finance, HR management, and solving legal issues.

Support functions may seem minor since they don’t bring value to a profit. However, they are as significant as manufacturing the product, either material or digital. Business process tasks provide security, staff productivity, and legal compliance. That’s why collaboration with a reliable vendor is crucial.

The core BPO benefit is a legal opportunity to hire in Eastern Europe in compliance with both countries’ legislations: the one where the business operates and the developer’s region of living. By delegating legal issues to a dependable partner, you ensure your projects’ full compliance with employment law requirements. A partner with solid legal expertise will offer you a comprehensive solution: from the appropriate job contract choice to tax management.

To cover more benefits, let’s consider onboarding as an example. Making a new developer a part of your team includes several steps. You should draft a job contract and NDA, manage the agreements signed by both sides, define the relevant pay rate, make up a competitive benefits package, and provide conditions for the developer’s expertise growth. To handle these tasks, an employer needs experience in the following fields:

• HR;

• law;

• employment legislation.

Apart from knowing the requirements, one should be seasoned in using plenty of tools: for time management, data storing and exchange, signing documents, drafting invoices, making payments, and many other tasks. Tools provide automation and security. Using the right software, you can pay your remote developers in a few minutes; and it doesn’t matter in what countries your engineers live. By signing a NDA, you protect your company from data leaks. What if a developer acts against the rules? Your BPO partner will protect your intellectual property and provide the proper employee behavior.

In the digital industry, projects are often remotely-based. It means that HR procedures and accounting should stick to the different local regulations. To hire an offshore developer, a company needs an entity in the country of the developer’s living – that’s the contract’s legitimacy condition.

To sum up, there are a few challenges in remote team management worth mentioning – those that BPO helps overcome:

• a need to have in-house experts seasoned in dealing with different local requirements and legal norms;

• considerable workflow with the formal stuff such as papers and HR procedures.

In theory, handling these functions with your in-house team effort is possible. In practice, it appears to be resource-demanding, expensive and entailing the risks of breaking the local laws. Thus, outsourcing this group of tasks to a third-party vendor looks reasonable.

Business process outsourcing gives you freedom and security:

• allows your team to focus on the directions vital for profit growth by delegating routine tasks;

• you provide the information security by signing the NDAs;

• you get a 100% legal compliance without much expertise in laws of countries you hire from.

Moreover, you optimize your budget. Firstly, you entrust the hiring and business process responsibilities to one partner who provides you with a price-friendly solution. Secondly, you can collaborate with Eastern Europe companies – the potential partners from a region full of talents eager to join your projects whose salary expectations are lower than those in the U.S.

When you hire and manage the business process in partnership with a single company, your profits double. Such collaboration delivers a well-founded and comfortable paycheck along with a smooth and effortless workflow.

BPO service from STARNAVI is comprehensive assistance for digital projects with a remote team eager for cost-effectiveness and evolving towards new markets. Our business process outsourcing expertise is based on experience in hiring in Eastern Europe and other regions since 2016.

Hiring works in sync with BPO. Some operational and legal challenges emerge as soon as a company starts hiring a particular candidate. An employer should form the benefits package, draw up an agreement, and set up the payment mechanism. To succeed, a company should have solid expertise in the financial and legal fields. If a developer is offshore, an recruiting manager should be knowledgeable in another country’s legislation. As a result, onboarding becomes expertise- and time-consuming, thus, expensive.

There are many things to manage on the way toward legal compliance, trust in relationships with team members, and collaboration effectiveness. Two options are to solve all the issues by yourself or delegate the tasks to a third-party vendor. STARNAVI as a BPO partner, is ready to offer a flexible and cost-effective solution for every case when you need to include a programming whiz kid into your team. We hire developers worldwide. We often tackle difficulties that might seem daunting to you, and we know how to deal with them.

STARNAVI, as a business process outsourcing partner, is ready to deliver the following services:

• HR and motivation management – assistance while assimilation a talent into your team, keeping tabs on your team’s psychological well-being;

• benefits management – building the benefits package and updating it according to your team members’ expectations, market trends, and your financial capacities;

• accounting and payroll management – assessment in all operations connected with regular payments;

• legal paperwork support – signing the contracts and NDAs;

• education and training – assistance in keeping your team’s expertise up-to-date.

We can consider the BPO as an “extension” for the hiring services: the job isn’t done as soon as you add one more gem to your collection of talents. We can offer you business administration functions outsourcing as an additional or a self-sufficient service. It’s up to you to decide what particular services you need. We’re ready to discuss your challenges at any time. We’ll offer you a variety of payment models to make our partnership financially flexible and friendly to your budget.