Business
CHANGING SOUTH AFRICA ’ S CHANGE RESISTANCE South Africa is behind the curve of technology and business trends . However , BPO is a trend that has the potential to fast track our post-Covid recovery and set us firmly on the path to economic growth . While there might be some resistance from a labour perspective , it needs to be clarified that BPO does not seek to replace jobs or workers . It seeks to make businesses more profitable and efficient and enables opportunity for job creation through growth and innovation instead .
Through BPO , companies contract out business functions that are not core to their revenue generating activities . While there is some concern for business owners that contracting out business functions means a loss of control over those portions of the business , they may be relieved to learn that these functions become subject to service level agreements ( SLAs ) which are run entirely by the BPO with the sole purpose of meeting KPIs to improve efficiencies .
This means that the BPO provider assumes accountability for performance in managing the relevant business processes in their entirety .
UNPACKING THE BENEFITS OF BPO What happens when a company outsources a non-core business function ? The BPO provider steps in to completely re-engineer that business function with the intention of streamlining operations and maximising output . Once a more efficient way of working has been established , processes are monitored on a continuous basis to identify even further opportunities for efficiency .
This leads naturally to increased productivity , better utilisation of resources and decreased operational costs . More importantly , it results in increased profits and enhanced risk mitigation .
By outsourcing to a specialist BPO , businesses gain access to immense industry expertise , from human and industrial relations to legal expertise , through to operational and financial expertise .
From a labour and operational perspective , BPO providers assume all the compliance obligations in terms of the National Labour Relations Act , as well as responsibility for union engagement and employment equity . From a health and safety perspective , outsourcing means enhanced health and safety compliance .
Once these compliance burdens have been removed from management , the company is now free to focus on those portions of the business that generate revenue . There is more time to focus on finding new avenues to market , because business owners are not caught up in the daily grind of operations , administrative tasks , or spending their time putting out fires .
SHIFTING THE PARADIGM TO EFFICIENCY AND PRODUCTIVITY As economic conditions continue to get tougher , South African businesses will find themselves struggling to remain competitive . Cost-cutting exercises will no longer be sufficient to ensure survival as it will no longer be enough for businesses to just spend less .
Instead , they must find ways to do more with less . Here , businesses should look to partnering with an established , trustworthy BPO provider . Companies that outsource their non-core business functions to a BPO partner can show they are transparent , legally compliant , and financially stable . In this way , companies will be able to ensure they remain competitive , while laying the foundation for business growth through efficiency , productivity and ultimately by creating the right conditions for innovation through the Everything-as-a-Service business model . RACA
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RACA Journal I March 2023 www . refrigerationandaircon . co . za