What is BPO
To understand what BPO (Business Process Outsourcing) is, it's necessary to understand the use of technology applied to business: business process outsourcing has been practiced in medium and large companies since the early 1990s. Companies in diverse sectors such as aeronautics, banking, and finance companies turn to specialized technology organizations to implement new solutions that ensure better execution and scalability of their operations and processes (both administrative and production).
BPO is more than a technological trend. The outsourcing of corporate solutions is gaining increasing momentum because it helps transform businesses by focusing primarily on the company's core area and enabling the execution of non-core and operational structures to be operationalized and measured through specialized BPO services, regardless of their segment.
The iconic case of Kodak, which implemented Business Process Outsourcing in IT in 1989, forever changed the technology solutions outsourcing industry. Since then, BPO solutions have been driving cost reduction for companies by delivering optimized services while making them much more affordable.
An example is cloud-based accounting BPaaS solutions, which drive cost reduction by enabling the contracting of systems and software without the need for licenses. Furthermore, BPO services also enable the development of specific solutions by in-house technology development teams.
Over time, BPO has evolved to serve other segments (such as financial BPO services). In short, the evolution of the outsourcing industry is a reflection of how innovative and disruptive technologies transform society as a whole.
Today, we refer to BPO as Business Process as a Service. In this context, systemic and robotic automation (RPA) complement the human factor of analysis in decision-making, emphasizes Cláudia Romanini, Head of Process Automation at INSI.
What is Financial BPO
Accountability Business Process Outsourcing can be defined as the outsourcing of the development of administrative and technological solutions, with the objective of meeting the specific demands of an organization's financial department.
BPO aims to establish environments conducive to process virtualization and, therefore, drive the digital transformation of operations of a company. To achieve this, systems and applications are developed that deliver modeled indicators (data and information) to enable assertive decisions regarding an institution's financial sector.
BPO partnerships allow companies to maintain their focus on implementing actions directly oriented toward their core business, thereby increasing their agility. It's also important to highlight that, by implementing the Agile mindset, an organization defines parameters for business practices that will establish platforms for acquiring new customers and markets.
The digitalization and virtualization promoted by BPO can create a virtuous cycle between data, information, management systems, and governance. Furthermore, it simplifies operational execution by transparently outlining any business strategy an institution develops in the short, medium, or long term.
Financial BPO: Meaning
One of the most important reasons for companies to adopt financial BPO is the added value of the data and modeled information obtained from organizational financial management systems. Quickly interpretable and transparent reports help accelerate the allocation of resources for future business investments.
Tasks such as issuing invoices and bank reconciliations become simpler when performed by innovative financial management systems. The bureaucratic routine becomes more dynamic and challenging for their operators, who must keep their technological knowledge up to date to apply it to current financial regulations.
Furthermore, the set of methods, procedures, and routines executed by accounting systems improves the performance of finance departments, as it is composed of technological tools specifically designed to solve financial and tax calculation problems.
Business Process Outsourcing ultimately translates into greater efficiency, productivity, and control over the capital required for continuity. to an organization's business.
Types of BPO
Business process outsourcing demonstrates the significant transformation of traditional corporate structures and offers a broad overview of the future of organizations—already embedded in a global economy whose information is more consolidated, primarily due to the contributions of recent technological advances.
When implementing IT and back-office Business Process Outsourcing solutions, a company must consider the different types of services available on the market:
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Total Outsourcing: This involves transferring more than 80% of the IT budget to technology assets, including the management of digital development processes, leasing, and hiring specialized labor;
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Selective Outsourcing: In this outsourcing model, one or more technology partners are chosen to develop specific solutions for one or more (previously selected) areas of the organization. Between 20% and 80% of the IT budget is dedicated to developing virtual applications or services to optimize corporate operations and processes (be they administrative, financial, or logistical, for example).
Source: The practice of outsourcing: from information systems to BPO and offshoring - by Leslie P. Willcocks and Mary C. Lacity.
It is worth noting that, through selective BPO, a company can choose the most efficient technology partner to solve its "technological bottlenecks." Through healthy competition, the technology market evolves as a whole, along with organizations.
Financial BPO and RPA (Robotic Process Automation) solutions
Disruptive innovations such as advanced data analytics, process automation (RPA), blockchain, smart contracts, and artificial intelligence (AI) have shaped current business models.
In the coming years, more areas of companies' finance departments—such as accounts payable, invoicing, payroll, and tax planning—are expected to rely on RPA-based solutions. Soon, even audits could be automated using AI technologies within hyperautomation.
The next step in this technological journey will be marked by a mix of increasingly advanced technologies. Currently, RPA is capable of providing data and information that "educate" Artificial Intelligence (AI), with the aim of further optimizing Machine Learning (ML), Process Mining, Task Mining, and cloud services tools.
If companies want to achieve Digital Maturity in their processes and operations, they can establish projects focused on RPA. With process automation, companies can evolve from the simplest (back office department, for example). Automation can mark the beginning of an organization's Digital Transformation, says Cláudia Romanini.
Financial BPO São Paulo
Organizations can reduce back-end administration costs by automating their processes and operations. This allows them to focus on activities that are more critical to developing their business and strategies.
As an organization evolves, it achieves a higher level of Digital Maturity to continue growing in the competitive Digital Business market.
To support this movement, INSI BPO has teams specialized in planning, developing, and implementing financial BPO solutions in São Paulo and throughout Brazil.
Advance your accounting BPO processes; contact INSI's team of experts. We create technology and solutions to evolve your finance department.