Kwazulu-Natal Business News

Send  Share  RSS  Twitter  06 Sep 2011

BUSINESS PROCESS OUTSOURCING: BPO a Solid Option in a Tough Economy


Recent Kwazulu-Natal Business News

More companies are turning to Business Process Outsourcing (BPO) as a viable solution in a tough economy. This is according to Riaan Terblanche, the Managing Director of HRO, an EOH company. “When finances are tight, organisations cannot necessarily do away with non-core processes such as HR, legal and employee benefits, such as health and wellness and recruitment, but would rather actively find ways to lower costs and expenses without placing undue strain on the business.”

Why to Consider BPO

Terblanche says companies consider Business Process Outsourcing for three reasons. “Outsourcing the process to an outside provider affords the company access to a pool of skilled resources that not only provide definitive cost gains of up to 20% but also provide efficiency gains, by delivering a service that is of a much higher standard with more expertise. The final reason is to obtain transformational gains, that will see the process being performed at a much better rate than it was before, adding value to the organisation,” explains Terblanche.

BPO effectively takes a non-core function or process that a business performs and outsources the knowledge-based process to a third party, allowing the company to focus on its core business.

One such example is the health and wellness service that the EOH BPO division offers. It is still a relatively new field of operation for South African companies, says Terblanche. “Organisations are becoming closely acquainted with the war on talent, realising that they need to do more than simply offering a medical aid to an employee if they wish to retain a scarce set of skills in the business.”

More Offers from BPO

“We offer various solutions ranging from employee assisted services where staff members can contact a call centre, providing psychological support to staff members suffering from traumatic distress, such as a hi-jacking. On the operational side, we can make medical staff available to perform routine medical services such as HIV, blood pressure and cholesterol testing. We also offer a comprehensive medical service in the form of a mobile clinic that is staffed by professional medical practitioners. The mobile unit is able to visit far-reaching locations where medical support is not readily available, ultimately aiding the company in taking responsibility,” explains Terblanche.

The process is preceded by a thorough needs analysis, where the EOH BPO division performs a comprehensive needs audit, says Terblanche. “The entire solution is tailored in line with what the client actually needs. In some instances we will pilot a project instead of implementing it and visa versa. The process does however hinge on the principle of ensuring that the solution is profitable for the client, regardless of which avenue is followed.”

The EOH BPO division comprises of 700 employees that specialise in the provision of HR, payroll, legal, finance and accounting, procurement, customer service and health care outsourcing that aids clients to focus on their core business, knowing the processes are in the hands of experts.


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