Choosing between BPO and in-house tasks can impact your business’s efficiency and costs.
Did you know? Businesses that use BPO can cut their operating costs by up to 30%.
Research shows the accounting outsourcing market will hit $53.4 billion by 2026. Boeing & Walmart are outsourcing accounting to ease processes, enrich efficiency, and drive growth. Boeing outsourced to India in 2022, and Walmart to Genpact in 2018 to boost operations and customer experience.
BPO helps save money and gives access to skilled workers worldwide. In-house gives you more control and team management.
It’s vital to know the pros and cons before choosing.
Want support in making the correct choice? Hire services from Expertise Accelerated to guide you through the process.
We offer a free consultation to help you explore BPO or in-house options. Let Expertise Accelerated help you choose wisely.
Table of Contents
What Is BPO vs. In-House?
BPO means employing another firm to operate tasks like accounting, customer service, payroll, or IT.
Businesses often choose BPO to:
- Lower costs
- Get expert help
- Focus on their main goals
In-house operations use your own team and resources. In-house offers more control and alignment but can be costlier and resource-intensive. 60% of small businesses use in-house accountants, but this drops to 43% after five years, as many opt to outsource. Some companies, like ISBX, prefer to handle accounting internally. Their president, Arthur Linuma, says it helps them control tasks and processes. While this gives control, it may limit access to broader expertise. The question is whether the in-house accountant is the best at improving and scaling operations. If not, outsourcing can bring in more expertise. Without external input, in-house methods can become outdated, leaving no room for improvement.
Outsource repetitive, time-consuming AP tasks that don’t involve sensitive data. You can outsource tasks like document management, invoice matching, and sales order processing. Other tasks include creating debit memos, reconciling accounts, and performing three-way matching. Additionally, you can outsource handling electronic invoices, processing travel expenses, and batch creation. You can also outsource auditing scanned invoices. This covers the entire procure-to-pay process.
According to Forbes, Outsourcing software development in 2020 helped businesses adapt quickly. Gartner expected outsourcing would grow by 5.5% in 2021. Outsourcing cuts costs and saves time vs. building an in-house team. Large firms outsource to lower expenses, concentrate on main tasks, solve capacity problems, and access professional talent at lower prices. It also helps with capacity by adding skilled workers without overloading internal teams. Outsourcing can cause communication issues, time zone challenges, and less control. Despite these, outsourcing can still work well if managed properly. Google, Alibaba, and WhatsApp outsource parts of their operations to save costs and access specialized skills. Google outsources admin, Alibaba taps global talent, and WhatsApp outsources non-core tasks. Outsourcing aids growth and balances it with on-site work.
Small businesses are not fully adopting outsourcing. A survey by the Arthur Andersen Enterprise Group shows that only 42% of small companies use outsourcing, and 3% plan to start in the next five years. The other 58% avoid outsourcing because they fear losing control (Bloomberg)
Differences between BPO vs. In house
| BPO (Outsourcing) | In-House Management | |
| 1. Expertise | Skilled professionals for different tasks | Depends on your team’s skills. |
| 2. Cost | Lower costs with shared resources | Higher costs for salaries, tools, and training |
| 3. Efficiency | Fast, automated processes | Slower due to manual work |
| 4. Scalability | Easy to scale up or down | Needs more staff and budget to scale |
| 5. Control | Managed by experts with regular updates | Full control stays within your company |
| 6. Risk Management | Fewer mistakes, better compliance | More chance of errors without external checks |
| 7. Customer Support | 24/7 support with automation | More control but slower and costlier |
| 8. Data Management | Handles data fast with automation | May be slower, but better for privacy |
| 9. Financial Services | Manages financial tasks with automation | More control but risks human error |
| 10. Human Resources | Automates HR tasks like payroll and hiring | Better for company culture but more time and money |
| 11. IT Support | Offers expert tech support and cybersecurity | More control but expensive to build and maintain |
Benefits of BPO vs. In-House
1. Cost Efficiency Outsourcing AP can cut down your costs. BPO cuts hiring and setup costs you just pay for what you use. This helps lower overhead while keeping your business profitable.
2. Access to Skilled Professionals and Tools Outsourcing gives you access to trained AP specialists. They use modern tools and stay updated on trends. This saves you the cost of tools and training.
3.Improved Efficiency and Speed AP outsourcing companies ease workflows, improving invoice processing and reporting accuracy. This lets your team focus on growth, customer relationships, and strategy.
4.Scalability Made Easy Need more aid during a busy season or want to reduce your team during slower times? Outsourcing lets you scale easily without hiring stress. Providers like Expertise Accelerated can adjust their support based on your business’s current needs.
5. Stronger Focus on Core Business Outsourcing AP tasks lets your team focus on key projects, customer experience, and growth.
6. Enhanced Security and Compliance BPO providers ensure data security and accuracy, reducing risks like duplicate payments. Expertise Accelerated also provides regular audits and real-time visibility to keep you informed.
7. Fewer Errors and Better Accuracy Manual data entry can lead to costly mistakes. Outsourcing companies use automation tools to reduce errors and improve accuracy. This reduces late payments, missed invoices, and errors, improving vendor relationships.
8. Better Risk Management Outsourcing providers specialize in handling financial regulations and compliance requirements. They help you avoid penalties, data breaches, and business disruptions. Expertise Accelerated ensures data protection, business continuity, and compliance.
9. Real-Time Tracking and Visibility Outsourcing partners use cloud-based ERP systems, allowing easy tracking of invoices, payments, and approvals.
10. Go Green Traditional AP processes rely heavily on paperwork. Outsourcing shifts everything online—reducing paper use and cutting down your carbon footprint. It’s a smart move toward greener business operations.
When BPO Wins and When In-House Works Best
BPO is a good choice if you want to save money. It helps with repeated tasks and supports fast business growth. You also get access to expert help. Plus, it’s useful if you run your business in different countries.
In-house operations are better when you need full control over quality and decision-making. They ensure strong alignment with your brand and company culture. They also allow you to make fast changes without waiting on third-party timelines.
Why Choose Expertise Accelerated?
Choosing Expertise Accelerated for your BPO needs gives your business:
- A team of skilled professionals trained to meet your goals
- Flexible plans to help you scale up or down as needed
- No need for hiring, training, or managing in-house staff
With EA, you get consistent, premium service and can focus more on growing your business. You save time, money, and stress while staying competitive in your industry.
Conclusion
Picking between BPO and in-house means deciding what works best for your business, cost, control, and skills. In-house gives you more control, but outsourcing can save cash and time. Expertise Accelerated makes outsourcing easy, affordable, and effective. We manage the hard parts so you can concentrate on growing your business. Get in touch with our team for a free consultation and let us help you find the correct path to success.