Document-intensive tasks represent about 5 to 15 percent of an organization's revenue, making this area a significant opportunity to reduce costs, improve the bottom line, and retain customers. Effective document process management also ensures that a company maintains brand integrity. According to the Document Outsourcing Market Forecast: 2013-2018 (covering Europe and the United States) published by InfoTrends, companies outsource document processing to reduce print volumes, reduce operational costs, access new technologies, and improve regulation and compliance.
Benefits of document process outsourcing (DPO) go far beyond cost reduction. The higher costs and increasing complexity of document management in a technology-driven, digital market means that business process outsourcing is one of the best ways for businesses to achieve process transformation. Service providers have the technology (including cloud and on-premise solutions) and the domain expertise to help companies of all sizes achieve their objectives.
Cost savings remains the primary reason companies outsource document processing and data entry. Third parties offer end-to-end services that include infrastructure, the latest software and hardware, labor, support and maintenance at much lower costs. Services can also be scaled up or down based on the company's changing needs. This case illustrates how a company can control costs while optimizing efficiency through records management. The client, Marriot International, wanted to streamline their accounts payable and claims management processes and reduce time-consuming paperwork. The DPO service provider developed a single, scalable platform that integrates easily with Marriot's enterprise resource software (ERP) and claims processing system. The vendor also reengineered workflows to reduce dependence on paper-based processes. As a result, Marriott quadrupled their processing capacity, optimized costs, and improved cash flow management.
One of the biggest benefits of DPO is direct access to the latest technology without upfront investment. Software is customized to the client's needs, and the third party provides support and management during the transition process. An example is automated accounts payable solutions that integrate with ERP systems. The employees log in invoice data into the ERP software and send the documents to the provider's service centers to be imaged and hosted. This streamlines the AP workflow and eliminates time-consuming steps like data validation. The end users can then access the digital documents and authorize payment easily. Because of increased efficiency, an organization can better manage its cash flow and suppliers. Similar outsourcing platforms can also be applied to content management, mailroom, data entry and imaging services.
At all levels of the organization, large components of business processes are increasingly dependent on digitized documents. For example, when Dow Chemicals needed to safeguard and preserve 5.5 million pages of critical documents that date back to 1937, the company outsourced document digitization to the DPO firm. The DPO scanned, organized, and enhanced the documents and made them available online for easy access. The result was a streamlined global R&D process and improved time to market.
Many companies maintain close ties with their customers through regular marketing and business-critical communications. These paper-based and electronic documents include invoices, promotional catalogs, credit notes and leaflets that are sent out to customers every single day. Business process outsourcing service providers can help improve customer satisfaction by personalizing promotional materials and emails and managing outgoing mail more efficiently. For example, a digital communications provider helped a UK-based bakery grow their business through automated mail sorting and reduction of paper-based statements.
To effectively outsource document process management, you need to work with a service provider that's the right fit for your company. Learn more about outsourcing and Outsource Staffing Philippines to have a better idea of the process, the outsourcing destination and their respective advantages.
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