Xponent Outsourcing Solutions

About Outsourcing

The business environment of today has become very complex, particularly in the area of human resource management. Business today seem to be fighting a losing battle to control employee-related issues such as payroll, health benefits, worker’s compensation claims, personnel management, unemployment insurance claims, and ever-changing tax issues.

Many business are discovering that contracting with a Business Process Outsourcer (BPO) can provide a quick and easy solution to these business headaches. Allowing a BPO to assume all or part of these responsibilities can allow the business owner to focus energies on the productive, revenue-producing activities of the business.

A BPO is defined as an organization that provides small and medium-sized business an integrated and cost-effective approach to the administration of human resources, employer risk and the management of employee-related matters.

A recent national report reported that almost 100 pages of new Federal workplace-related regulations are printed each day. The significant increase in employment-related federal, state and local laws and regulations means the expertise required to manage a business has outgrown the experience and training of many entrepreneurs who started these businesses. With this in mind, the BPO industry is an increasingly popular response to the market demands of small and medium-sized business owners.

BPOs can offer small business owners the same personnel services and expertise that could be found in a Fortune 500 corporation. Not many business can afford a full-time staff consisting of a doctor, an accountant, a human resource professional, a lawyer, a risk manager, a benefits manager, or even a financial planner. A BPO offers this level of expertise, plus many additional professional services and benefits to their clients.

By providing these services, BPOs enable their clients to concentrate on their business without facing the daily challenges and interruptions commonly identified with employee management issues. Utilizing a BPO, business owners can now focus on the revenue producing side of their business, enabling enhanced profitability and business opportunities.

BPOs also offer significant advantages to worksite employees. As cost, complexity, and employee demand for better and more extensive employee benefits increase, the ability of the employer to satisfy the demands of the workforce is stretched. In many cases, a small or medium-sized business cannot match these demands and provide the number, or quality, of benefits that a BPO can offer to employees.

These benefits include health insurance, retirement savings plans, disability and life insurance, and employee assistance plans. A small business owner’s cost of establishing and administering this range of plans would be prohibitive. Due to economies of scale, PEOs help American workers and their families by offering these and other benefit plans to small business owners at affordable cost.