Small medium enterprises

Introduction Accessing French Public Markets New Business Creations at Record Level in France Help for France’s SMEs - new measures announced The outlook for business in France in 2007-2008 An attractive Social and Tax system Business Process Outsourcing – New Tools for Medium-sized Companies Setting up a Joint Venture in France Payment Delays - Good News for SMEs

Business Process Outsourcing – New Tools for Medium-sized Companies

Outsourcing core business processes such as certain general management functions like accounting or human resources, used to be reserved only for the largest companies. Today, medium-sized companies are beginning to see the advantages and finding business value in outsourcing some of their general and administrative activities. A recent study by Everest Research Institute, specialists in monitoring business process outsourcing (BPO), argues that BPO is increasingly within the scale and budget reach of medium-sized companies.

The study identifies four key benefits for medium-sized enterprises adopting BPO, namely:
Administrative cost-savings as some downsizing can be achieved by outsourcing general and administrative services. Equally, labor can be deployed as a function of cost more easily: BPO allows a company to relocate certain functions to lower cost centers.

Accessing the latest technology at lower costs via the BPO suppliers who are increasingly tailoring their services to the scale of medium-sized companies.

Increased business focus as internal staff concentrate on strategic business decisions.

More fulfilling career paths: while this may seem paradoxical, experience from IT outsourcing shows that IT professionals increased their career opportunities.

Two-thirds of BPO contracts signed with medium-sized companies are for finance and accounting functions. These transactional processes typically include payables, receivables and administrative work, notably payroll. Human resources are the second most popular outsourced business process, accounting for 24% of contracts. Procurement comes in a distant third place with 10% (source: Everest Research Institute). Large companies that pioneered BPO services are now moving these levels to include more key activities like financial analysis and management reporting.